These questions often require 'two-sentence' answers.

• 2 x identification

• 2 x explanation

• Explain two ways in which a central bank differs from a commercial bank.

• Explain two measures of comparative living standards.

• Explain two different opportunity costs that may be involved in becoming a sole proprietor.

• Explain two causes of a fall in the death rate. 

• Explain two reasons why a firm may change from labour-intensive to capital-intensive production. 

• Explain the difference between average fixed cost and average variable cost.

Analyse how/why [CAUSE].... has the [EFFECT].... 

• Analyse how an increase in the money supply may cause inflation and a fall in saving

  • "An increase in the money supply may cause inflation and a fall in savings....

• Analyse how an increase in investment may increase a country’s economic growth rate.

• Analyse how consumers may suffer as a result of a fall in the profits firms earn.

• Analyse how a reduction in government spending may affect unemployment. 

• Analyse how an increase in investment may affect unemployment.

Analyse the [REASONS].... why [EFFECT].... 

• Analyse why workers with the same skills may be paid different wage rates.

• Analyse why doctors are paid more than nurses.

Discuss whether [CAUSE].....should/will likely [EFFECT].... 

EXAMPLE#1: Discuss whether fiscal policy measures will reduce poverty.

• • "Fiscal policy might lead to a reduction in the poverty level if..., (Up to 5 marks) however it might not because... (Up to 5 marks)"

EXAMPLE#2: Discuss whether an increase in a country’s population size will cause an increase in living standards. 

• • "An increase in a country's population size might lead to an increase in living standards if..., (Up to 5 marks) however it might not because... (Up to 5 marks)"

• Discuss whether a cut in corporation tax will increase economic growth.

• Discuss whether supply-side policy measures will reduce inflation.

• Discuss whether a country exporting its raw materials always benefits its economy.

• Discuss whether an increase in taxes will reduce inflation.

• Discuss whether an increase in exports will increase the exchange rate.

• Discuss whether an increase in a country’s labour force will increase income per head.