AS Level Economics – Guide to
Answering 8 & 12 Mark Questions
Includes step-by-step strategy, structure, model answers, and tips for scoring high marks.
Focus Chapters: 5–10 (PPC, Types of Goods, Demand & Supply, Elasticities, Equilibrium).
1. General Answering Strategy
• Understand command words: Explain, Analyse, Discuss, Evaluate.
• Always link theory to context / example from the real world.
• Use diagrams wherever relevant (label axes, shifts, equilibrium).
• Show evaluation for 12-mark questions (pros, cons, limitations, exceptions).
• Keep answers structured with points clearly separated.
2. Step-by-Step Structure
8-Mark Questions:
• Usually "Explain" or "Analyse".
• Suggested structure:
1. Point – state the idea clearly.
2. Explanation – link theory or definition.
3. Example – apply to real world or given context.
4. Link back – conclude or link to question.
• Write 3–4 well-explained points.
12-Mark Questions:
• Usually "Discuss" or "Evaluate".
• Suggested structure:
1. Introduction – define key terms / set context.
2. Analysis / Points – explain 4–5 key points with examples.
3. Evaluation – discuss limitations, pros & cons, exceptions.
4. Diagram – draw if relevant.
5. Conclusion – give balanced final judgment.
3. Command Word Guide
• Explain: Give reasons / causes, link cause and effect.
• Analyse: Break into parts, show relationships, use diagrams.
• Discuss: Give advantages/disadvantages, compare different views.
• Evaluate: Make a judgment based on analysis, include exceptions, link to context.
4. Answer Framework (PEEL)
• Point: State your main idea clearly.
• Explanation: Explain how/why.
• Example: Give a real-world example, diagram, or data.
• Link: Conclude or tie back to the question.
5. Tips to Score High Marks
• Always label diagrams clearly.
• Use economic terms accurately (elasticity, scarcity, equilibrium, opportunity cost).
• For 12-marks, provide a balanced evaluation with pros/cons.
• Time management: spend more time on 12-mark questions.
• Apply chapter-specific examples (e.g., PPC, PED, public goods, equilibrium shifts).
6. Model Sample Answers
Sample 8-Mark Question: Explain the effect of an increase in demand for
chocolate.
• Point: An increase in demand shifts the demand curve to the right.
• Explanation: At the original price, quantity demanded exceeds quantity supplied, causing
shortage.
• Diagram: Draw D1 → D2 shift, show P ↑, Q ↑.
• Example: Rising popularity of premium chocolate increases consumer purchases.
• Link: Higher equilibrium price and quantity result.
Sample 12-Mark Question: Discuss the importance of price elasticity of demand
for a firm.
• Introduction: Define PED – responsiveness of Qd to price changes.
• Analysis / Points:
1. Revenue impact – inelastic demand allows firm to increase price to raise revenue.
2. Pricing strategy – elastic demand requires careful pricing to avoid losing sales.
3. Marketing – firms may influence elasticity through advertising and branding.
• Evaluation:
• Limitations: Market may change, competitors react, short vs long run effects.
• Real-life context: Luxury vs necessity goods behave differently.
• Diagram: Include demand curve showing elastic/inelastic portions.
• Conclusion: PED is vital for revenue and strategy, but context and market dynamics affect
outcomes.
7. Do’s & Don’ts for 8/12 Mark Questions
Do’s:
• Always define key terms.
• Use diagrams if relevant.
• Give real-world examples.
• Apply PEEL or structured paragraphs.
• For 12-marks, always include evaluation.
Don’ts:
• Do not write only definitions.
• Avoid unsupported statements.
• Do not forget diagrams if question requires.
• Do not ignore evaluation in 12-mark questions.
