How to Get Full Marks in A-level Business and Economics Essay Questions

As a Business Studies and Economics tutor, one of the most common questions I am asked is how to produce an answer for higher-marked exam questions, typically those worth 9 marks plus. It’s the thing that every student that I tutor wants to know. 

Students often realise too late that these questions require a different kind of answer altogether, compared to the questions awarding fewer marks. This can obviously cost you dearly in the exam.

It’s easy to be unsure of how to structure an answer properly and know what the examiners are looking for. After all, you are not studying English and are not necessarily a skilled wordsmith or storyteller!

Why is it important to learn to write essays?

An essay question is a question that requires you to write a longer piece of text in response. They are usually worth from 9, all the way up to 25 marks each! 

These questions are common in A-level Economics or Business Studies exams and they can be a bit daunting if you're not sure how to approach them. If the examiner can’t follow your train of thought, it’s unlikely you will get full marks.

Answering in this longer format presents a lot of dangers. It can be easy to deviate from what the question is asking you for, or forget to make an important point when you are writing nonstop for long periods. 

Under the time pressure of an exam with lots to write, it can be tempting to dive straight in and start writing with no time to waste - but it is vital to commit some time to structure an answer before you begin.  

This time allows you to make sure you are preparing enough relevant points, proportional to the marks available, so you mention everything you need to. It can be hard to keep track of what you have mentioned so far, and what you are still to mention if you skip this step.

Ultimately you want to guide your examiner through your answer and make it obvious where you are ticking the boxes of all of the assessment objectives. Let’s look at those now…

Assessment Objectives

Additionally, there are four different types of assessment objectives (AO) used in the exam. Any question will be asking you to do 1 or more of the following: 

AO1 – Demonstrate knowledge

Demonstrate knowledge of the subject, terms, concepts, theories, and definitions to show an understanding of the syllabus.

AO2 – Apply knowledge

Apply knowledge to economic and business contexts and scenarios.

AO3 – Analyze the impact

Analyze issues within economics or business and the impact on stakeholders (employees, firms, shareholders etc).

AO4 – Evaluate the arguments 

Evaluate the arguments and points you have made, stating pros and cons or discussing alternative points of view – using qualitative and quantitative data and evidence to support informed judgements.

An example of the AQA Business Exam weighting of the questions types.

Remember: The depth of detail you are expected to go into and time spent on each answer is always proportional to the marks available. Different papers will focus on each assessment objective a varied amount. 

Types of Exam Questions

Depending on the type of question and the number of marks awarded, the question will be assessing one to four of the assessment criteria:

Knowledge-based questions

These questions ask you to demonstrate your knowledge of the subject matter. These can include Calculate… or Define… 

Marks Available: Generally they are 2 to 4-mark questions. 

Assessment Objectives: AO1

Application-based questions 

These questions ask you to apply your knowledge to a specific situation, such as Explain…or Interpret…and may refer to a diagram or case study text. 

Marks Available: Generally they are awarded 4 to 6 marks per question, 

Assessment Objectives: AO1, AO2

Analysis-based questions 

These questions ask you to analyze a situation and draw conclusions. These can include Analyze…Explain How. 

Marks Available: Generally these are 8 to 15 mark questions.

Assessment Objectives: AO1, AO2, AO3

Evaluation based questions 

These questions are asking you to demonstrate and apply knowledge, analyze the situation, and evaluate what you are saying to produce a coherent, logical response. These include command words like Justify…., Evaluate…or Compare and Contrast…

Marks Available: Usually 20 to 25 mark questions.

Assessment Objectives: AO1, AO2, AO3, AO4

Top Tips

No matter what type of essay question you're faced with, there are a few key things to keep in mind when answering it:

• Define and demonstrate knowledge: Always start by defining key concepts or theories contained in the question to demonstrate your knowledge and it will also help you structure your answer. You can refer back to your definition as you write your essay to remind you of the key points you are covering.

• Structure your answer: Your answer should have a clear introduction, body, and conclusion.

• Always use evidence to support your claims: Make sure to use evidence from the course material to support your points. 

Avoid Common Mistakes

There are a few common mistakes that students make when answering essay questions. Be sure to avoid these mistakes, such as making irrelevant points, not answering the question, and forgetting to use evidence to support your points.

Remember to:

• Read the question carefully: Make sure you understand what the question is asking you to do. Make a note of the keywords and ensure you read the question twice to ensure you understand the meaning. Phrases like “To what extent” are looking for you to evaluate both sides of the argument in line with AO4. If they are asking for “your opinion”, remember and give evidence on why you think that. 

• Plan your answer: Before you start writing, take a few minutes to plan your answer. Include an intro paragraph, one or more main body paragraphs and one conclusion paragraph. This will help you stay on track and ensure that you cover all of the relevant points. Consider any examples, pros & cons you may need to back up a point before you get started.

• Write clearly and concisely: Use clear, concise language and paragraphs effectively in your answer. Avoid using jargon or technical terms that the examiner may not understand. If introducing a specific concept, make sure it is accurately defined in a prior sentence. When using acronyms, make sure you have written it out fully before just using the acronym - eg. Return on investment (ROI).

• Proofread your answer as you go: If you have time be sure to proofread it carefully for any errors before you get too far into the essay. If it seems hard to follow or confusing, the examiner will likely think the same. 

Example Essay

Here is an example of how to structure an essay plan and answer to a 15-mark question. 

Notice that the phrase “explain how X should” indicates you have to analyze the situation and come to an expected conclusion. There is no need to include arguments for and against or explore different outcomes (ie ignore AO4). 

If this question was worth 20+ marks and asked “evaluate whether….”, then that indicates your opinion and arguments are expected. 

Example Question

Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient. [15 marks] [AO1, AO2, AO3]

Essay Plan

This can be shorthand bullet points for all of the info that pops into your head when you review the question.

There is no need to flesh out all of your points here but it helps to get a few ideas down in case you get stuck or lose track.

Cover definitions of terms you will be mentioning in the intro so the main body of the essay can flow and be easy to write and follow while reading it.

Introduction

• Briefly describe what the aim of the essay is.

• Define keywords:

1. Perfect competition 
2. Productive efficiency 
3. Allocative efficiency 

Body

Apply knowledge of the characteristics of a perfectly competitive market to: 

• Describe which outcomes are linked to productive efficiency

1. The number of buyers and sellers prevents one firm from having a significant market share to raise the price above the competitive level.
2. Firms are price takers so produce at the lowest possible cost
3. Goods & services are identical so firms can only compete on price.
4. Buyers and sellers have perfect information on the goods or services so firms can’t overcharge without losing market share.

• Describe which outcomes are linked to allocative efficiency

1. Firms produce goods and services that are highly desired by consumers.
2. The marginal cost of production is equal to the marginal benefit to consumers eg. they are willing to pay the competitive market price.
3. The number of buyers and sellers is large so the consumer desires the common good or service to be priced as low as possible. 
4. Consumers can easily switch from one firm to another if unsatisfied as they have perfect information.
5. Firms must be competitive on both quality and price to be successful. 
6. Each firm will have to make what consumers want in order to survive in a perfectly competitive market. 

Conclusion

• Reiterate (or sometimes refuse) the question claim.
• Summarise the main factors why:

1. Many buyers and sellers
2. Same goods & services
3. Perfect information about goods & services
4. marginal cost = marginal benefit

Fully Written Essay Answer

In this essay, I will explain how perfect competition should lead to outcomes which are both productively and allocatively efficient. Perfect competition defines a state where the market is made up of many buyers and sellers, all of whom produce identical products. Buyers and sellers have perfect information about prices and costs, and there are no barriers to entry or exit. In a perfectly competitive market, all firms are price takers. Productive efficiency occurs when a firm is producing at the lowest possible cost. Allocative efficiency occurs when the market is producing the goods and services that are most desired by consumers and resources are allocated to meet these needs.

In a perfectly competitive market, firms will be producing at their lowest possible cost because they are price-takers so this should lead to productive efficiency. There are a number of factors that mean that productive efficient outcomes should occur in a perfectly competitive market. First, there are many buyers and sellers, which means that no one buyer or seller has a significant amount of market power, this prevents any one firm from raising prices above the competitive level. 

Second, the goods or services being sold are all the same, which means that firms cannot compete on quality, so they must compete on price. Third, buyers and sellers have perfect information about the goods or services being sold, so firms cannot charge a price above the competitive level without losing customers to other firms.

In a perfectly competitive market, allocative efficiency should also be an outcome because the market will be producing the goods and services that are most desired by consumers. This is because firms will be producing at the point where the marginal cost of production is equal to the marginal benefit to consumers, so the market is producing the goods and services that consumers are willing to pay for. 

There are many buyers and sellers in a perfectly competitive market, which means the goods and services produced are those that consumers desire at the lowest price, so it is therefore allocatively efficient. Also, consumers can easily switch from one firm to another if they are not satisfied so firms must focus on being competitive on both quality and price to be successful. Finally, consumers can make informed decisions about which products to buy because there is perfect information, therefore each firm will have to make what consumers want in order to survive in a perfectly competitive market. 

In conclusion, perfect competition should lead to outcomes which are both productively and allocatively efficient. These factors include many buyers and sellers, homogeneous goods or services, and perfect information, leading to marginal cost of production being equal to the marginal benefit to consumers.

Marks: 15/15



What if I have limited time left for the exam?

Hopefully, all will go well and you will be managing the time in your exam expertly, but if you do find yourself short of time. The key thing is not to panic, and also do not just leave the answer sheet blank because you don’t have time to write a full answer. 

The best thing to do is structure your essay in the same way but use short bullet point lists for your answer to getting your knowledge and main points across, don’t worry about linking words and sentences or perfect grammar if you are stuck for time. 

If you really have very little time you can still put down some knowledge relating to the question and demonstrate that you have some understanding of the subject in a simple list. 

That way, you may pick up a few extra marks which is far better than leaving it blank - or spending your last few minutes planning an answer and not being able to actually demonstrate any knowledge.

Oliver has the expertise to help you on your way to understanding the intricacies of Business & Economics.

Contact him today using the author link below, or use our search page to find the perfect tutor to help with your studies.