The command word tells you how much analysis and evaluation a question wants. Match your answer to it:
A–Z Key terms glossary
| Term | Meaning |
|---|---|
| Ceteris paribus | "All other things being equal" — holding other variables constant. |
| Opportunity cost | The value of the next best alternative forgone. |
| PPF | Curve showing maximum output combinations of two goods with full, efficient use of resources. |
| Specialisation | Concentrating on producing a particular good, service or task. |
| Demand | Quantity consumers are willing and able to buy at each price. |
| Supply | Quantity producers are willing and able to sell at each price. |
| PED / YED / XED | Responsiveness of demand to price / income / the price of another good. |
| Equilibrium | The price where quantity demanded = quantity supplied. |
| Consumer surplus | Gap between what consumers will pay and what they do pay. |
| Producer surplus | Gap between the price received and the minimum acceptable. |
| Indirect tax | A tax on spending (specific or ad valorem) that shifts supply up. |
| Subsidy | A government payment to producers that shifts supply down. |
| Market failure | Misallocation of resources by the free market. |
| Externality | A cost or benefit falling on a third party, ignored by the market. |
| Merit / demerit good | Good that is under-consumed (merit) or over-consumed (demerit). |
| Public good | Non-rival and non-excludable good → free-rider problem. |
| Asymmetric information | One party knows more than the other in a transaction. |
| Government failure | Intervention that causes a net welfare loss. |
Edexcel command words
The command word tells you how much analysis and evaluation a question wants. Match your answer to it:
| Command word | What it expects |
|---|---|
| Define / State | A precise meaning. 1–2 marks. No development needed. |
| Calculate | Work out a figure — show your working and give units. |
| Draw | An accurate, fully labelled diagram (axes, curves, points). |
| Explain | Develop a point with a clear chain of reasoning. No evaluation. |
| Examine | Analyse in detail and begin to weigh up — some evaluation. |
| Discuss / Assess | Build balanced arguments and evaluate, leading to a judgement. |
| Evaluate / To what extent | The top tier: analysis + sustained evaluation + a justified, supported conclusion. |
The golden rule for analysis
Build chains of reasoning: point → because → which means → leading to → therefore. One well-developed chain beats five undeveloped statements. For evaluation, use MICE: Magnitude, It depends, Counter-argument, Economic context (short vs long run, elasticity, ceteris paribus assumptions).
Viewing only
This content is free to read on superexams.com and cannot be printed or downloaded.
Read the full note, free
Create a free account to read this note in full. Every free account gets 2 complete revision notes, no card needed.