Cambridge International as and a level Economics Ebook

Table 11.1
 
Key command words
Source
: Cambridge International AS and A Level Economics 9708 Syllabus. 
277
Chapter 11: Preparing for examinations 

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You will then appreciate that the following instructions are 
not the same:
■ 
Define price elasticity of demand.
■ 
Explain what is meant by price elasticity of demand.
■ 
Discuss the relevance of price elasticity of demand in 
business.
A simple method for interpreting essay 
questions
Consider the following typical example of an AS Level 
question:
1
a
With the help of a diagram, explain how a produc-
tion possibility curve can illustrate the concepts 
of opportunity cost and economic growth. 
[8]
b
Discuss whether free market economies or centrally 
planned economies are more likely to make choices 
that will maximise the benefits for consumers. 
[12]
Th
e subject content is in 
Chapter 1
 of the book. Remember 
to divide your time for answering the question according 
to the number of marks available, so allow 15–20 minutes 
for part a and 25–30 minutes for part b.
Part a 
must
contain a diagram of a PPC. You need 
to use this diagram to show how opportunity cost can 
be explained by a movement along the PPC; economic 
growth can be shown by an outward shift of the PPC. 
So put these two concepts (and identify them clearly) 
on your diagram and then write a few sentences to 
explain each.
Part b is more diffi
cult. Th
is is fl agged up by the 
command word ‘discuss’, which means you should give 
arguments in your answer as to which type of economy is 
‘more likely to make choices that will maximise the benefi ts 
for consumers’. So, you need to analyse how choices are 
made in each. You may like to incorporate other diagrams 
in your answer but do ensure that you give a balanced 
explanation covering both types of economy. Finally, you 
should give a conclusion, based on the arguments that you 
have put forth in the body of your answer.