‘Economics is too important to leave to the economists’ – Steve Keen
Economics is everywhere. You know that. You also know you are already one step ahead of the rest in understanding the inner workings of businesses, marketplaces, and governments. But economics runs so much deeper than that. It takes your critical thinking, problem-solving, decision-making, and data analysis prowess to champion league levels. It puts you at an advantage for whatever study path AND baller career you choose to pursue. The long and short of it is that your study of economics can be a key to success. Not just in education, but in life. So how do I use this key to unlock success in my NCEA Economics exams? That’s what we’re here to for. Deflation can let you down (hah, get it), but your grades don’t have to. Read on for all the tips and tricks on how to smash your externals and score that bliss excellence whether you’re tackling NCEA Level 1, NCEA Level 2, or NCEA Level 3. We also have a whole separate article on NCEA Economics Scholarship Exams so you really do have all bases covered. For information on your internals, check out our complete guide to NCEA Economics.
NCEA Level 1 Economics
Pumped for your first time sitting NCEA Level 1 Economics? Or maybe you’re a little nervous? Either way, we’ve got you. Let’s get you ready! You will need to provide written answers, as well as drawn diagrams and graphs if required. Make sure to include a ruler and calculator in your stationery list. Let’s break down your externals into bite-sized chunks now.
90983 Demonstrate understanding of consumer choices, using scarcity and/or demand
The consumer here extends to individuals or households that have demand for a good or service. These consumers make choices – otherwise known as economic decisions – that are driven by a couple of factors. Scarcity is a big one. This happens when the wants of said consumers outweigh the finite means. This can result in an opportunity cost. You may also encounter consumer choices in response to fluctuations in both the price and non-price factors influencing demands, which pretty much refers to the willingness and ability of the consumer to purchase goods and services at specified prices. Elevate your external to excellence by integrating your discussion of these consumer choices occurring as a response to change in the price or non-price factors that influence demand. Be sure to discuss the changes in demand in your explanations as well. Finally, include demand curves and schedules for extra brownie points and you’re golden.
90985 Demonstrate understanding of producer choices using supply
When we talk about the producer, we mean the firm or sole proprietor that supplies the good or service. A standard principle in economics, supply relates to the amount of product a supplier is both willing and able to sell for a set of prices. Once again, the choices they make refer to their economic decisions – this time, in relation to price and non-price factors. That’s all well and good, but we’re here to help you shoot for that excellence. For those skyscraper grades, make sure you integrate comprehensive explanations about the flow-on effects for the producer with the choices they make in response to both internal and external factors that may impact supply. A key focus that we need you to get into here is the changes in supply.
90986 Demonstrate understanding of how consumer, producer, and/or government choices affect society, using market equilibrium
Final one and we’re bringing it all together for the home run. By now we’re pretty solid that consumers are individuals or households that hold demand for a good or service. We know that their economic decisions can directly impact the demand for goods and services, meaning both price and non-price factors. Producers are the ones supplying the goods. Their economic choices influence the supply of goods and services. Again, these can include both price and non-price factors. Government choices relate to factors such as price controls, direct and indirect taxes, and subsidies. Society is made up of consumers, producers, and the government. And finally, we look at market equilibrium, which is the price and quantity determined by supply and demand. As you can see, this question does have multiple components, so be sure to break it down and address each one the best you can. Up your shot at excellence by integrating your discussions on how these multiple stakeholders impact market equilibrium with how these changes influence different sectors. Once again, be sure to include sufficient detail on the changes in supply and demand.
NCEA Level 2 Economics
91222 Analyse inflation using economic concepts and models
NCEA Level 2 Economics and we’re heading into the champion leagues. Let’s look at the key components to this question. Inflation here is reflected by fluctuations in pricing. Inflation, disinflation, deflation, business cycle, cost-push and demand-pull inflation, and real versus nominal indicators are the economic concepts you may be examined on, so be sure to go over these! Models will be taken from the quantity theory of money and the Aggregate Supply and Aggregate Demand (AS/AD) model, though don’t worry – your understanding of how to derive the AS and AD curves are not required, Gunning for that excellence, you’ll need to compare and contrast the impact of these changes on inflation on the multiple groups of New Zealand society. This is your chance to work in the changes on the economic models into your explanations.
91223 Analyse international trade using economic concepts and models
There are a few ways to tackle this bad boy. Firstly, let’s go through the terms used. International trade describes the changes in the value of New Zealand exports and imports. You may have to discuss a range of economic concepts, ranging from major export or import goods and services, major export and import markets, as well as balance on goods and services in the Current Account. Models may be selected from the two-country model depicting supply and demand, supply and demand using New Zealand as a price taker or the exchange rate shown by the supply and demand of the New Zealand dollar. To score your excellence, be sure to discuss the impact of the causes of these changes on international trade itself, and extend this discussion to the groups making up New Zealand society. Finally, remember to include the changes on the models in your explanations.
91224 Analyse economic growth using economic concepts and models
Changes in GDP, productive capacity, or social welfare are all instances of economic growth. Economic growth here relates to real GDP, productive capacity, and net social welfare. Economic concepts address the measuring of economic growth, as well as nominal and real GDP. Models may be chosen from the production possibility frontier model, circular flow model or the Aggregate Supply and Aggregate Demand (AS/AD) model (though you won’t need to understand how to derive this curve). Aim to once again examine the impact of these economic changes on economic growth, as well as on various societal groups, working in the changes illustrated on the models as you go.
NCEA Level 3 Economics
91399 Demonstrate understanding of the efficiency of market equilibrium
Your final set of NCEA Level 3 exams, what a beast! Today, we are looking at the efficiency, that is, when the sum of consumer and producer surpluses are maximised—of the market equilibrium. This is influenced by market forces, as well as market changes associated with consumer, producer, and total surpluses. For your best shot at excellence, you can examine the impact of these market changes on efficiency by comparing the flow-on effects on various participants, such as the consumer, producer, or government. Like in Level 2, bonus points if you’re able to work in an economic model or two in your discussion of these impacts.
91400 Demonstrate understanding of the efficiency of different market structures using marginal analysis
After your last external, you’re already a pro at efficiency. Now we discuss it in relation to a market structure, relating to monopolies and perfectly competitive markets. You describe these using marginal analysis, aka marginal revenue and cost to calculate the output and firm pricing decisions. You’ll need to harness this to reach the output P(=MR) = MC. This is where perfectly competitive firms get to profit maximising output and are efficient; and/or monopoly firms are at profit maximising output (MR = MC), but fail to reach efficiency. Markers are looking for your ability to integrate market structure efficiency, their long- and short-term impacts on pricing and output decisions of firms using marginal analysis, as well as government effectiveness in improving monopoly market efficiency. You know the drill by now, include the changes on the economic model(s) in your work.
91403 Demonstrate understanding of macro-economic influences on the New Zealand economy
Both internal factors such as government policy changes, consumptions, as well as savings and investment habits, and external factors like variations in net exports, terms of trade, exchange rates, trade, and the global economy can be considered macro-economic influences. When we talk about the economy, we are looking at a country’s ‘system of production, distribution, and consumption of goods and services'. You are required to analyse the effectiveness of different government policies in smashing micro-economic goals, as well as the impact of these goals on the New Zealand economy. And you’re a seasoned veteran by now, so make sure to include changes from the model in your answer.
Still got questions? Check out the full list of exam resources here.
Past exams
Now you know the tips and tricks to maximise success in your Economics NCEA exam, how do you put them into action? They say practice makes perfect, so why not put yourself to the test and sit some practice exams? One of the single best methods for your NCEA Economics revision, check out our article on how to use past exams to your advantage. If you’d like to spend a bit more time going over the material before you give those a crack, we’ve also got you covered with our NCEA Economics Study Guide.
Need a hand?
We understand that you may still have questions, want to check if you’re doing things right, or would just like the dedicated help of an expert to help you get the grades you deserve. Why not choose from our range of friendly, knowledgeable staff to get you one step ahead of the rest? Here at Superprofs, we have got you covered!
Enjoyed this article? Leave a rating!
Loading...
