These A Level Economics 7136 topics consistently produce the lowest scores. Prioritise these in your revision.
!
Index numbers and the Fisher equation of exchange (MV = PQ)
Paper 3 Q10 June 2022: facility under 20%, prominent distractor B chose. 'To answer this question, students had to know that Fisher's equation of exchange is MV=PQ.' (7136/3 June 2022 Q10). Paper 1 Q1 June 2023: over half scored 0, mostly because they forgot to multiply by 100 to convert to index form.
Affects: Paper 1, Paper 3
!
Monopolistic competition long-run efficiency
'Some students struggled to construct the diagram accurately, and/or did not have a sound understanding of monopolistic competition or the efficiencies, which meant that often their responses remained in level 2.' (7136/1 June 2023 Q9). Confused with monopoly in a minority of cases.
Affects: Paper 1
!
Government failure
'It was evident that some students did not have a secure enough understanding of government failure or its causes to discuss it meaningfully. In other responses, the treatment of government failure was peripheral.' (7136/1 June 2022 Q12)
Affects: Paper 1
!
Output gaps and supply-side policy
'Although Essay 2 was a popular choice, it was one of the worst answered in terms of the 15 mark question. The question set related to output gaps... Some weaker answers didn't understand the difference between a positive or negative output gap or believed that an output gap was the same as a trade surplus or budget surplus.' (7136/2 June 2022 Q11)
Affects: Paper 2
!
Quantitative easing and the transmission mechanism
'It was surprising to see that the majority of students considered the lack of credit availability as a factor affecting aggregate supply, rather than impacting on aggregate demand and the derived demand for labour.' (7136/2 June 2023 Q7). Many could not link QE to falling unemployment or avoidance of deflation.
Affects: Paper 2
!
Commercial bank balance sheets
Paper 3 Q26 June 2022: facility under 18%. 'Almost 60% of students selected distractor C which suggests that they... thought retained profit (reserves) is a liquid asset. Reserves are not a pot of cash but are on the liabilities side of the balance sheet.' (7136/3 June 2022 Q26)
Affects: Paper 3
!
Phillips curve and inflationary expectations (LRPC vs SRPC)
Paper 3 Q16 June 2023: under 32% correct, prominent distractor D. 'Students choosing option D did not understand that an increase in the natural rate of unemployment is represented by a rightward shift in the long-run Phillips curve.' (7136/3 June 2023 Q16)
Affects: Paper 3
!
Comparative advantage and opportunity cost
Paper 3 Q22 June 2023: only 31% chose the key. 'Option A is wrong because although Country X has an absolute advantage in producing both tea and coffee, it has a comparative disadvantage in producing tea. The opportunity cost of producing tea in Country X is higher than in Country Y.' (7136/3 June 2023 Q22)
Affects: Paper 3