Excel in Economics
CIE 9708 Economics · free beta

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CIE 9708 · Microeconomics

Market failure: show why the market outcome is not socially efficient

For Cambridge 9708, start by identifying the missing social cost or benefit. Then use the diagram or chain of reasoning to explain over- or under-allocation before judging a policy response.

CIE 9708 · Basic economic ideas

Resource allocation: explain what prices do — and where they fall short

Economic systems answer what to produce, how to produce and for whom to produce. In an exam response, link the method of allocation to incentives, information, equity and efficiency.

CIE 9708 · Macroeconomics

Circular flow of income: trace where spending enters and leaves the economy

A circular-flow answer is strongest when it follows the money: identify the injection or leakage, explain the effect on aggregate demand and then qualify the likely impact on output, employment and prices.

CIE 9708 · International economics

Protectionism: explain the barrier, then judge the trade-off

Do not simply list advantages and disadvantages of protectionism. Explain the mechanism by which a tariff, quota or subsidy changes prices, quantities and incentives — then evaluate the wider effects.

CIE 9708 · Microeconomics

Market structures: compare behaviour, outcomes and the case for intervention

A useful comparison of market structures goes beyond definitions. Link the number of firms and barriers to entry to price, output, efficiency, innovation and consumer choice.

CIE 9708 · Microeconomics

Price elasticity of demand: calculate, classify, then apply

PED questions reward more than a formula. Calculate the coefficient, interpret what it means for a firm or government, and explain why responsiveness may change over time.

CIE 9708 · Macroeconomics

Inflation: identify the pressure before choosing the policy

Inflation is a sustained rise in the general price level. Strong answers separate demand-pull pressure from cost-push pressure and judge policies by their likely trade-offs.

CIE 9708 · Macroeconomics

Unemployment: diagnose the type, then match the response

For 9708, avoid treating unemployment as one problem. Explain why labour demand or labour-market matching has failed, then evaluate whether a demand-side or supply-side response fits.

CIE 9708 · Macroeconomic policy

Monetary policy: trace the transmission, then test its limits

Interest-rate questions are about mechanisms. Explain how a central-bank decision affects borrowing, saving, investment, exchange rates and aggregate demand before claiming a macroeconomic outcome.

CIE 9708 · International economics

Exchange rates: separate the price effect from the quantity response

A depreciation does not automatically improve the current account. Explain who faces higher or lower prices, then use elasticities, capacity and time to evaluate the eventual outcome.