Exam-style question
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Data-response practice: using the evidence in context, analyse how a change linked to labour markets would affect price, quantity, welfare or macroeconomic performance. (3).
Model answer
What a good answer should say
- 3.1.2.3 Aspects of Behavioural Economic Theory.
- EXAM-STYLE 3: a strong response defines the relevant economic concept, applies it to the stated context, develops a cause-and-effect chain, and reaches a judgement about consumer surplus, producer incentives, efficiency and equity.
Explanation
Why this works
is assessed through the prompt: "Data-response practice: using the evidence in context, analyse how a change linked to labour markets would affect". Begin with a precise definition of Aspects of Behavioural Economic Theory., then apply it to Individuals, firms, markets and market failure using the context rather than a memorised paragraph.
The analysis should move through at least three steps: the initial cause, the transmission mechanism, and the economic consequence for consumer surplus, producer incentives, efficiency and equity. Evaluation should consider whether the result depends on elasticities, confidence, spare capacity, market power, data quality, the size of the intervention, or the time period.
A high-quality AQA answer finishes with a judgement that weighs the strongest argument against the most important limitation, not a generic "it depends" sentence.
Common mistake
No common mistake is linked to this question yet.