In this article, as shared in my small group Economics tuition classes, I will delve into the complexities of tackling Part B questions in essays or higher-order case study questions. Students should note the importance of delivering a balanced analysis and exploring diverse outcomes when addressing these types of questions. This outcome is important to score a L3 grade.
Balance in Policy Questions
It is not difficult to infuse balance in questions which are policy-related. My JC Economics tuition classes aim to provide students with a clear sense of the examinable themes in a topic and the writing structures to deploy. For example, when asked whether a certain policy is most appropriate in tackling a micro or macroeconomic problem, Balance (or the thesis and anti-thesis) entails writing the pros and cons of the policy, as well as the need for an alternative policy. In short, when evaluating the suitability of a policy or examining the effects of an event on various stakeholders, acknowledging both positive and negative consequences is essential.
Balance in Impact Questions
When discussing the impact of an event on a certain outcome or stakeholder, it is also not difficult to include Balance in the essay. For example, when my JC Economics tuition students are asked to consider the impact of an event on firms, we consider both positive and negative impacts on profits, which can be linked through a rise or fall in revenue and cost. When assessing the impact of an event on consumers, we can consider the impact on consumer surplus, quality and variety.
Even in the macroeconomic context, when linking events to the impact on an average resident (consider impacts on material and non-material living standards) or an economy (impact on the four macroeconomic goals), it is also not difficult to generate both positive and negative outcomes.
In cases where a good vs bad outcome cannot be derived, students can also consider the Balance through large vs small impacts. E.g. an external recession is less damaging to an economy which is not very export-driven, while export-driven countries like Singapore suffer more.
Small Group Economics Tuition Example: A Unique Case Where Balance is Difficult
We however recognise the challenges of maintaining balance in scenarios where the impact is objective and factual, such as assessing the impact of events on a market (Demand and Supply).
A market can be affected through a change in price, quantity or expenditure, and these are factual outcomes without a clear good/bad divide (since question did not ask to link to producer nor consumer welfare). In this case, I would suggest varying the elasticity values to introduce Balance. Specifically, by adjusting such values, one can explore various outcomes on the market and provide a more varied analysis.
For instance, when analysing how declining milk prices affect the cheese market, we link declining milk prices to a fall in the cost of producing cheese. Cheese production is impacted by the cost of milk, a key factor in its production. If milk prices decrease, the cost of making cheese also decreases, leading profit-driven producers to increase cheese supply. The effect on the market and consumer expenditure depends on price elasticity of demand (PED). A steep or gentle demand curve will result in varying impacts on expenditure. Adjusting elasticity values based on PED can result in different outcomes, with adults potentially more willing to substitute cheese than children, for whom cheese may be a dietary staple. Varying elasticity and PED can lead to different results in market outcome.
By highlighting the significance of adjusting elasticity values and considering diverse viewpoints, you can come up with valuable strategies for addressing higher-order questions effectively. This approach not only aids in formulating a rigourous response (with different diagrammatic analysis) but also showcases a profound grasp of economic principles and the ability to provide a contextual answer based on the nature of the good in question.