Understanding command words is essential for exam success. Each word tells you exactly what the examiner expects in your answer.
A precise, concise definition using correct economic terminology. Usually worth 2 marks. No explanation or examples needed unless asked.
"Define the term price elasticity of demand." — State the formula or a clear definition linking % change in quantity demanded to % change in price.
A short, direct answer. No elaboration required. Often worth 1 mark per point stated.
"State two factors that cause a shift in the demand curve." — Just name them, e.g. changes in income, changes in tastes.
Select the correct item from data, a diagram, or a scenario. Brief — no explanation needed.
"Identify the equilibrium price from the diagram." — Read the value directly from where supply and demand intersect.
A clear calculation with workings shown. Include the formula, substitute values, and give the final answer with correct units.
"Calculate the price elasticity of demand." — Show: PED = % change in Qd / % change in P = -20% / 10% = -2.
A clearly labelled diagram with axes, curves, and key points marked (equilibrium, shifts, areas). Labels are essential for marks.
"Draw a diagram to show the effect of an indirect tax." — Show S shifting left/up, new equilibrium, tax wedge, and deadweight loss area.
More than just naming — give a brief description of each point but without detailed analysis. Think of it as a summary.
"Outline how a subsidy corrects a positive externality." — Briefly describe the shift in supply, lower price, higher output moving towards social optimum.
A clear factual account of what happens, step by step or feature by feature. More detail than "outline" but no analysis of why.
"Describe the trend in unemployment shown in the data." — State whether it rose or fell, by how much, and identify any turning points.
Not just what happens, but WHY it happens. Use chains of reasoning (because → this leads to → therefore). Link cause and effect explicitly.
"Explain why a rise in income increases demand for normal goods." — Higher income → more purchasing power → consumers buy more → demand curve shifts right.
Detailed chains of reasoning showing cause and effect. Use economic theory, diagrams, and real-world context. Go beyond a simple explanation — show HOW and WHY.
"Analyse the impact of a minimum wage above the equilibrium." — Discuss: wage floor → surplus of labour (unemployment) → which workers benefit/lose → firm responses.
Present evidence for and against, then make a supported judgement. Consider relative importance, short-run vs long-run, and stakeholder perspectives.
"Assess the effectiveness of indirect taxes in reducing negative externalities." — Analyse how taxes work, then evaluate limitations (inelastic demand, smuggling, regressive).
The highest-level skill. Present arguments for and against, consider assumptions, short-run vs long-run, different stakeholders, and reach a reasoned conclusion. Must include a final judgement.
"Evaluate whether supply-side policies are the best way to reduce unemployment." — Analyse supply-side policies, compare with demand-side, consider trade-offs, conclude.
Similar to evaluate — examine arguments for and against. Consider different viewpoints and contexts. A balanced response with a conclusion.
"Discuss whether economic growth always benefits an economy." — Consider benefits (jobs, income) vs costs (inequality, environment), short vs long run.
Clear, direct comparison highlighting the key differences. Use contrasting language: "whereas", "unlike", "on the other hand".
"Distinguish between a movement along and a shift of the demand curve." — Movement along = price change; shift = non-price factor change.
Both similarities AND differences should be addressed. Use comparative language and make direct, paired comparisons.
"Compare fiscal and monetary policy." — Both manage AD; fiscal uses G and T, monetary uses interest rates; different time lags and side effects.
Provide strong evidence and reasoning to defend a position. Explain WHY something is the best option or WHY a conclusion is valid.
"Justify the use of subsidies to correct a positive externality." — Because marginal social benefit > marginal private benefit, subsidy closes the gap.
Use your understanding to make a reasonable proposal. It does not have to be definitive — "suggest" allows for possibilities.
"Suggest a reason why demand for cigarettes is price inelastic." — Addictive nature means consumers are unresponsive to price changes.
Evaluate the degree to which something is true. Consider evidence for and against, then make a balanced judgement about the extent.
"To what extent does free trade benefit developing countries?" — Consider gains from specialisation vs dependency, terms of trade, infant industries.
Similar to assess or evaluate. Review the evidence, think about implications, and present a thoughtful response.
"Consider the impact of rising inflation on different stakeholders." — Workers (real wages fall), savers (lose), borrowers (gain), firms (uncertainty).