essay for economics

• Economic Essays Grade 12

Grade 12 Economic Essays for the Next Three-Year Cycle (2021-2023)

• Discuss in detail the markets within the FOUR-SECTOR model (Circular Flow)

Discuss in detail 'The new economic paradigm'/Explain the 'smoothing of cycles (Business Cycles)

Discuss in detail the features underpinning forecasting (Business Cycles)

Discuss in detail the main objectives of the public sector in the economy (Public Sector)

Discuss in detail the reason(s) for public sector failure (link them to typical problems experienced through public sector provisioning) (Public Sector)

Discuss in detail the reasons for international trade (Foreign Exchange Markets)

• Discuss in detail export promotion (Protectionism and FreeTrade)

Discuss in detail the arguments in favour of protectionism (Protectionism and Free Trade)

Discuss in detail the demand-side approach in promoting growth and development in South Africa (Growth and development)

Discuss in detail the following South African growth and development policies and strategic initiatives (Growth and development)

Discuss in detail South Africa's initiaties (endeavours) in regional development (Industrial Development Policies)

Discuss in detail the following economic indicators (Economic and Social Performance Indicators

Discuss in detail the following social indicators (Economic and Social Performance Indicators)

Discuss in detail the various equilibrium positions with the aid of graphs-PERFECT MARKET (Perfect Market)

• Discuss the monopoly in detail (with/without the aid of graphs) (Imperfect Market)

Examine the oligopoly in detail (Imperfect Market)

• Compare and contrast any TWO types of market structures  

Discuss in detail how the following factors lead to the misallocation of resources in the market (Market Failures)

Discuss in detail state intervention as a consequence of market failures, with the aid of relevant graphs (Market Failures)

Discuss in detail the consequences of inflation (Inflation)

Discuss in detail the measures to combat demand-pull and/or cost-push inflation (Inflation)

Examine in detail the effects of tourism (Tourism)

Examine in detail the benefits of tourism (Tourism)

Discuss in detail how the government can ensure sustainable development (Environmental Sustainability)

• Discuss in detail the following problems and the international measures taken to ensure sustainable development (Environmental Sustainability)

ESSAYS FOR THE NEXT THREE-YEAR CYCLE (2021-2023)

Macroeconomics- paper1.

Discuss in detail the markets within the FOUR-SECTOR model (Circular Flow) INTRODUCTION The economy of a country is regarded as an open economy because of the presence of households, producers, government, foreign sector and financial sector as active participants in the economy. Markets link the participants in the economy 🗸🗸 [Max 2]

BODY: MAIN PART PRODUCT / GOODS/ OUTPUT MARKET🗸

• These are the markets for consumer goods and services🗸🗸
• Goods are defined as tangible items, like food, clothes, cars, etc. that satisfies some human wants or needs🗸🗸
• Buying and selling of goods that are produced in markets e.g. 🗸🗸
• Capital Goods market for trading of buildings and machinery🗸🗸
• Consumer goods market for trading of durable consumer goods, semi-durable consumer goods and non-durable consumer goods. 🗸🗸
• Services are defined as non-tangible actions and include wholesale and retail, transport and financial markets. 🗸🗸

FACTOR / RESOURCE/ INPUT MARKETS🗸

• Households sell factors of production on the markets: rent for natural resources, wages for labour interest for capital and profit for entrepreneurship🗸🗸
• The factor market includes the labour, property and financial markets. 🗸🗸
• The market where services of factors of production are traded e.g. labour is hired and capital is borrowed – these services earn wages, interest, rent and profits🗸🗸

FINANCIAL MARKETS🗸

• They are not directly involved in the production of good and services, but act as a link between households , the business sector and other participants with surplus finds🗸🗸
• E.g. banks, insurance companies and pension funds🗸

MONEY MARKETS🗸

• In the money markets short term loans, and very short term funds are saved and borrowed by consumers and business enterprises 🗸🗸
• Products sold in the market are bank debentures, treasury bills and government bonds 🗸🗸
• The simplest form exists when parties make demand and short-term deposits and borrow on short term 🗸🗸
• The SARB is the key institution in the money market🗸🗸

CAPITAL MARKETS🗸

• In the capital markets long term funds are borrowed and saved by consumers and the business sector🗸🗸
• The Johannesburg Security Exchange (JSE) is a key institution in the capital 🗸🗸
• Products sold in this market are mortgage bonds and shares🗸🗸

FOREIGN EXCHANGE MARKETS🗸

• On the foreign exchange markets businesses buy/ sell foreign currency to pay for imported goods and services🗸🗸
• These transactions occur in banks and consists of electronic money transfers from one account to another🗸🗸
• The leading centres/ most important foreign exchange markets are in London, New York and Tokyo 🗸🗸
• e.g. traveller’s cheques to travel abroad🗸
• Flows of private and public goods and services are real flows and they are accompanied by counter flows of expenditure and taxes on the product market🗸🗸
• Factor services are real flows and they are accompanied by counter flows of income on the factor market🗸🗸
• Imports and exports are real flows and are accompanied by counter flows of expenditure and revenue on the foreign exchange market🗸🗸[Max 26]
• A change in investment of R 10m will result in a change in income of R 20m🗸🗸
• An increase in investment causes the expenditure function to shift upwards from C1 to C2 so that C1 is parallel to C2🗸🗸
• The effect of the increase in investment is that the total expenditure will increase from R 20m to R 30m🗸🗸
• The increase in the value of output (Y) is greater than the increase in the expenditure (E) 🗸🗸 (Explanation must comply with the figures supplied in the graphical presentation) [Max 4] [Max 10]

CONCLUSION The circular flow ensures continued interdependence and coordination of the economic activities in the economy / markets are critically important institutions in our economic system, because they regulate the supply and demand and safeguard price stability and general business confidence. 🗸🗸 [Any other relevant conclusion] [Max 2]

INTRODUCTION The new economic paradigm in terms of the smoothing of business cycles discourages monetary policy makers from using monetary and fiscal policies to fine tune the economy but rather encourages achieving stability through sound long term decisions relating to demand and supply in the economy/smoothing out the painful part of economic down-fall that is part of the market economy🗸🗸 (Accept other relevant definition/description of smoothing/new economic paradigm). [Max 2]

BODY: MAIN PART The new economic paradigm is embedded in the demand and supply side policies. 🗸🗸

Demand-side policies

• It focuses on aggregate demand in the economy🗸🗸
• When households, firms and the government spend more, demand in the economy increases. 🗸🗸
• This makes the economy grow but lead to inflation.🗸🗸
• Aggregate demand increases more quickly than aggregate supply and this causes price increases. 🗸🗸
• If the supply does not react to the increase in demand, prices will increase. 🗸🗸
• This will lead to inflation (a sustained and considerable in the general price level) 🗸🗸

Unemployment:

• Demand-side policies are effective in stimulating economic growth. 🗸🗸
• Economic growth can lead to an increase in demand for labour. 🗸🗸
• As a result more people will be employed and unemployment will increase. 🗸🗸
• As unemployment decreases inflation is likely to increase. 🗸🗸
• This relationship between unemployment and inflation is illustrated in the Phillips curve. 🗸🗸
• The PC curve shows the initial situation. A is the point of intersection of the PC curve with the x- axis. It shows the natural rate of unemployment, for instance 14%🗸🗸
• At point A inflation rate is zero. 🗸🗸
• If unemployment falls to C for instance, 8%, inflation caused by wage increases is at 6%.🗸🗸
• If unemployment increases from C to B to A, inflation falls from 6% to 2% to 0%.🗸🗸

Supply-side policies Reduction of costs 🗸

• Infrastructural services: reasonable charge and efficient transport, communication, water
• services and energy supply. 🗸🗸
• Administrative costs: these costs include inspection, reports on applications
• of various laws, regulations and by-laws, tax returns and returns providing statistical
• information.
• It adds to costs and businesses carry a heavy burden 🗸🗸
• Cash incentives: it includes subsidies for businesses to locate in neglected areas where unemployment is high and compensation to exporters for certain costs they
• incurred in development of export markets. 🗸🗸

Improving the efficiency of inputs 🗸

• Tax rates: low tax rates can serve as an incentive to workers. It will improve the productivity and output. 🗸🗸
• Capital consumption: replacing capital goods regularly creates opportunities for businesses to keep up with technological development and better outputs🗸🗸
• Human resource development: to improve the quality of manpower by improving health care, education and training. 🗸🗸
• Free advisory service: these promote opportunities to export. 🗸🗸

Improving the efficiency of markets 🗸

• Deregulation: removal of laws, regulations and by-laws and other forms of government controls makes the market free. 🗸🗸
• Competition: encourages the establishment of new businesses 🗸🗸
• Levelling the play field: private businesses cannot compete with public enterprises 🗸🗸 Answers must be in full sentences and well described with examples to be able to obtain 2 marks per fact. Learners should be awarded 1 mark per heading or sub-heading to a maximum of 8 marks. (8 x 1) (8) [Max 26]

Explanation: The above graph shows:

• Aggregate demand (AD) and aggregate supply (AS) are in equilibrium at point C. 🗸🗸
• If aggregate demand is stimulated so that it moves to AD1 and aggregate supply responds promptly and relocates at AS1; a larger real output becomes available without any price increases. 🗸🗸
• Supply is often sticky and fixed in the short term. 🗸🗸
• Therefore, if aggregate demand increases to AD1 and aggregate supply does not respond, intersection is at point F. Real production increases but so does the price, in other words, with more inflation. 🗸🗸
• The aggregate demand locates at any position to the left of AS1 inflation prevails. 🗸🗸
• The solution is to create conditions that ensure supply is more flexible. 🗸🗸
• If the cost of increasing production is completely flexible, a great real output can be supplied at any given price level. 🗸🗸 [Max 10]

CONCLUSION It is clear from the discussion above that it is critically important to manage the aggregate supply and demand to ensure stability in the economy. 🗸🗸 [Accept any relevant higher order conclusion] [Max 2]

INTRODUCTION Accurate prediction is not possible in Economics. The best the economists can do is to try and forecast what might happen. There are a number of techniques available to help economists to forecast business cycles, e.g. economic indicators 🗸🗸 OR Successive periods of contraction and expansion of economic activities 🗸🗸 [Accept any other relevant introduction] [Max 2]

BODY: MAIN PART Business cycle indicators Leading economic indicators 🗸

• These are indicators that change before the economy changes / coincide with the reference turning point 🗸🗸
• They give consumers, business leaders and policy makers a glimpse (advance warnings) of where the economy might be heading. 🗸🗸
• Peak before a peak in aggregate economic activity is reached.
• Most important type of indicator in helping economists to predict what the economy will be like in the future 🗸🗸
• When these indicators rise, the level of economic activities will also rise in a few months' time/an upswing 🗸🗸
• E.g. job advertising space/inventory/sales ratio🗸

Coincident economic indicators🗸

• They move at the same time as the economy / if the turning point of a specific time series variable coincides with the reference turning point🗸🗸
• It indicates the actual state of the economy🗸🗸
• E.g. value of retail sales. 🗸
• If the business cycle reaches a peak and then begins to decline, the value of retail sales will reach a peak and then begin to decline at same time🗸🗸

Lagging economic indicators🗸

•  They do not change direction until after the business cycle has changed its direction🗸🗸
• They serve to confirm the behaviour of co-incident indicators🗸🗸
• E.g. the value of wholesalers' sales of machinery🗸
• If the business cycle reaches a peak and begins to decline, we are able to predict the value of new machinery sold🗸🗸

Composite indicator🗸

• It is a summary of the various indicators of the same type into a single value🗸🗸
• Their values are consolidated into a single value , if this is done we find a value of a composite leading , coincident and lagging indicator🗸🗸 Accept ONE example from the table below:

• This is the time that it takes for a business cycle to move through one complete cycle (measured from peak to peak) 🗸🗸
• It is useful to know the length because the length tends to remain relatively constant over time.🗸🗸
• If a business cycle has the length of 10 years it can be predicted that 10 years will pass between successive peaks or troughs in the economy. 🗸🗸
• Longer cycles show strength. 🗸🗸
• Cycles can overshoot. 🗸🗸

Ways to measure lengths:

• Crisis to crisis 🗸🗸
• Historical records 🗸🗸
• Consensus on businesses experience 🗸🗸

Amplitude 🗸

• It is the difference between the total output between a peak and a trough. 🗸🗸
• It measures the distance of the oscillation of a variable from the trend line / It is the intensity (height) of the upswing and downswing (contraction and expansion) in economic activity 🗸🗸
• A large amplitude during an upswing indicates strong underlying forces – which result in longer cycles 🗸🗸
•  The larger the amplitude the more extreme the changes that may occur / extent of change 🗸🗸
• E.g. During the upswing inflation may increase from 5% to 10%. (100% increase) 🗸🗸
•  A trend is the movement of the economy in a general direction. 🗸🗸
• It usually has a positive slope because the production capacity of the economy increases over time 🗸🗸
• Also known as the long term growth potential of the economy. 🗸🗸
• The diagram above illustrates an economy which is growing – thus an upward trend (positive slope) 🗸🗸
• Trends are useful because they indicate the general direction in which the economy is moving – it indicates the rate of increase or decrease in the level of output🗸🗸

Extrapolation 🗸

• Forecasters use past data e.g. trends and by assuming that this trend will continue, they make predictions about the future🗸🗸
• Means to estimate something unknown from facts or information that are known 🗸🗸
• if it becomes clear that the business cycle has passed through a trough and has entered a boom phase, forecasters might predict that the economy will grow in the months that follow 🗸🗸
• It is also used to make economic predictions in other settings e.g. prediction of future share prices🗸🗸

Moving average 🗸

• It is a statistical analytical tool that is used to analyse the changes that occur in a series of data over a certain period of time / repeatedly calculating a series of different average values along a time series to produce a smooth curve 🗸🗸
• The moving average could be calculated for the past three months in order to smooth out any minor fluctuations 🗸🗸
• It is calculated to iron out (minimize) small fluctuations and reveal long-term trends in the business cycle🗸🗸 Answers must be in full sentences and well described with examples to be able to obtain 2 marks per fact. Learners should be awarded 1 mark per 8 headings and examples. [8 x 1=8] [Max 26]

BODY: ADDITIONAL PART

• An expansionary monetary policy is implemented when the economy is in recession in order to stimulate economic activities. 🗸🗸
• Interest rates can be reduced to encourage spending. 🗸🗸
• Households and firms can borrow more and spend more. 🗸🗸
•  The increased spending increases the level of economic activity. 🗸🗸
• Investment will increase and more factors of production will be employed. 🗸🗸
• Higher levels of production, income and expenditure will be achieved. 🗸🗸
• If the supply of goods and services does not increase in line with an increase in demand, inflation will increase. 🗸🗸
• Inflation can be curbed by reducing money supply and availability of credit. 🗸🗸
• To dampen demand at the peak the government will be able to reduce the money supply by increasing interest rates. 🗸🗸
• Selling government bonds and securities (open market transactions) and reduce the supply of money in circulation. 🗸🗸
• Increase the cash reserve requirements to manipulate money creation activities of banks. 🗸🗸
• Persuade banks to decrease lending (moral suasion) 🗸🗸
• To devaluate the exchange rate (exchange rate policy) 🗸🗸 [Max 10]

CONCLUSION It remain clear that business cycles must be clearly monitored through the indicators available, policy makers must act quickly by using monetary and fiscal instruments in order to prevent instability in the economy. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

INTRODUCTION: The government provides goods and services that are under supplied by the market and therefore plays a major role in regulating economic activity and guiding and shaping the economy. 🗸🗸 [Max 2]

BODY: MAIN PART Objectives:

Economic growth 🗸

• Refer to an increase in the production of goods and services 🗸🗸
• Measured in terms of Real GDP 🗸🗸
• For economic growth to occur, the economic growth rate must be higher than Population growth 🗸🗸
• Growth and development in a country benefit its citizens because it often leads to a higher standard of living 🗸🗸

Full employment 🗸

• It is when all the people who want to work, who are looking for a job must be able to get a job 🗸🗸
• High levels of employment is the most important economic objective of the government 🗸🗸
• The unemployment rate increased over the past few years 🗸🗸
• Informal sector activities must be promoted because it is an area where employment increase 🗸🗸

Exchange rate stability 🗸

• The economy must be manage effectively and effective Fiscal and monetary policy must be used to keep the exchange rate relatively stable 🗸🗸
• Depreciation and Appreciation of the currency create uncertainties for producers and traders and should be limited. These uncertainties must be limited 🗸🗸
• The SARB changed the Exchange rate from a Managed floating to a free floating exchange rate 🗸🗸

Price stability 🗸

• Stable price causes better results in terms of job creation and economic growth 🗸🗸
• The SARB inflation target is 3% - 6% and they are successful in keeping inflation within this target 🗸🗸
• Interest Rates, based on the Repo Rate are the main instruments used in the stabilisation policy 🗸🗸
• The stable budget deficit also has a stabilizing effect on the inflation rate 🗸🗸

Economic equity 🗸

• Redistribution of income and wealth is essential 🗸🗸
• South Africa uses a progressive income tax system – taxation on profits, taxation on wealth, capital gains tax and taxation on spending, are used to finance free services 🗸🗸
• Free social services are basic education; primary health and to finance basic economic services 🗸🗸
• E.g. Cash Grant to the poor, e.g. child grants and cash grants to vulnerable people, e.g. disability grants 🗸
• Progressive taxation means that the higher income earners pay higher/more taxation 🗸🗸 [Max 26]
• Learner responses can be positive or negative.
• Follow the argument and see if the learner can produce enough evidence to support his/her answer.

Economic Growth:

• SA targets 4–5% economic growth. Previously SA had a 5% growth rate 🗸🗸
• In recent years the growth rate decreased steadily (presently below 3%) 🗸🗸

Full Employment:

• Compared to foreign countries unemployment is very high. (Expanded – over 30%) 🗸🗸
• Efforts by SA government to reduce these figures includes the GEAR strategy, focus on small business enterprises, Public Works Programme 🗸🗸

Exchange rate stability:

• SA now operates on a free floating exchange rate system in line with international benchmarks 🗸🗸
• Unfortunately our currency has lost its value, with a general trend of depreciation over the last few years 🗸🗸

Price stability:

• For the past few years South Africa has managed to remain within the 3–6% target 🗸🗸
• The current increase in the repo rate has put constraints on the inflation rate 🗸🗸

Economic equity:

• Economic equity has improved (BEE, affirmative action, gender equity) and led to an improvement in economic equity 🗸🗸 [Any 5 x 2] [Max 10]

CONCLUSION: While some successes have been achieved by government, the fulfilling of some of the objectives are compromised by factors like lack of accountability, corruption, budgeting, nepotism and incompetence. 🗸🗸 [Any relevant conclusion] [Max 2]

INTRODUCTION The government responds to market failures by establishing and maintaining state owned enterprises to provide public goods and services 🗸🗸 [Any other relevant introduction] [Max 2]

BODY: MAIN PART

• It is required to give an explanation of one's decisions, actions and expenditures over a period of time 🗸🗸
• There are mechanisms for evaluating government's economic and financial performance 🗸🗸
• That the desired quantities and quality of goods and services for which taxes are raised are delivered 🗸🗸
• That monopolies, corruption, nepotism, incompetence and apathy does not occur 🗸🗸
• Two important elements of accountability is participation and transparency🗸🗸
• Ministerial responsibilities, i.e. the ministers of government departments are responsible for decisions and actions and expenditures 🗸🗸
• Parliamentary questioning arises and members of the government departments have to respond 🗸🗸
• The national treasury is responsible for treasury control 🗸🗸
• The auditor-general reports annually in writing on each government department🗸🗸
• Public goods are efficiently provided if Pareto efficiency is achieved 🗸🗸
• That is if resources are allocated in such a way that no one can be made better off without making someone else worse off 🗸🗸
• Bureaucracy the official rules and procedures. 🗸🗸/insensitivity to the needs of their clients 🗸🗸
• Incompetence- the lack of skill or ability to do a task successfully🗸🗸/May have improper qualifications/or an attitude of apathy 🗸🗸
• Corruption- the exploitation of a person's position for private gain /taking bribes, committing fraud, nepotism 🗸🗸
• State-owned enterprises do not operate according to the forces of supply and demand 🗸🗸
• It becomes thus very difficult for state-owned enterprises to assess needs and they are thus prone to under- or over-supplying public goods and services 🗸🗸
• The census and other household surveys as well as local government structures provide this type of information 🗸🗸
• Since resources are scarce, government must then decide which needs and whose needs are to be satisfied 🗸🗸
• In the private sector houses are built according to the price that people are able and willing to pay 🗸🗸
• In the public sector housing is regarded as a social responsibility and authorities supply them according to the needs of people 🗸🗸
• In a market economy prices are determined by supply and demand 🗸🗸
• The objectives of firms are to maximise their profits and they usually set prices to achieve this objective 🗸🗸
• Government does not pursue the profit maximisation objective 🗸🗸
• Government takes into account certain social, economic, political and environmental conditions as well as public opinion 🗸🗸
• Free-of-charge services- this is met from taxes 🗸🗸 and applies to most community goods and collective goods 🗸🗸 (e.g.) defence, police whereby charges and toll fees are levied 🗸
• User-charges 🗸 option to charge depends on technical reasons 🗸🗸 (e.g.) cost of providing a double lane road could be recovered by toll charges 🗸 Economic reasons 🗸 such as services like water and electricity 🗸 that have a zero price 🗸 political reasons 🗸 where income distribution is significantly unequal, administrative rationing according to need takes place 🗸🗸 (e.g.) public health and education 🗸
• Direct and indirect subsidies direct subsidies are used to cover part of the costs 🗸🗸 (e.g.) urban bus service 🗸 and an indirect subsidy is used to write off accumulated losses or deficits 🗸🗸
• Standing charges -called availability charges 🗸🗸 (e.g.) water and electricity 🗸 standing charges goes to meet fixed costs and the price per unit consumed covers variable costs 🗸🗸
• Price discrimination - different users have different elastic ties of demand for a good 🗸🗸 (e.g.) commercial and manufacturing businesses pay higher rates than households and they pay on a sliding scale🗸🗸
• State-owned enterprises that either render a service or when an existing enterprise is nationalised 🗸🗸
• They focus on making a profit and maximizing cost at the expense of the needs of some groups 🗸🗸 (e.g.) Iscor 🗸 SABC, 🗸SAA, Spoornet 🗸
• refers to the process whereby state-owned enterprises and state-owned assets are handed over or sold to private individuals 🗸🗸
• cost of maintaining and managing state-owned enterprises are high which can lead to higher taxes and larger public debt 🗸🗸
• State-owned enterprises are not run as efficiently as private enterprises 🗸🗸
• Nationalisation is the process whereby the state takes control and ownership of privately owned assets and private enterprises 🗸🗸
• It includes contracting of services, public-private partnerships, increasing competitiveness🗸🗸 [Max 26]

ADDITIONAL PART Possible problems in your community or elsewhere

• Lack of drinking water due to burst pipes 🗸🗸
• Lack of electricity due to lack of infrastructure (load shedding) 🗸🗸
• Lack of schooling – no buildings available – lack of maintenance 🗸🗸
• Lack of health services due to lack of staff, infrastructure, strikes 🗸🗸
• Lack of adequate housing (RDP) 🗸🗸 [Max 10 marks - List of examples max 5 marks] [Accept any other relevant answer] 

CONCLUSION If the above problems are not dealt with timeously by government, government will continue to fail its people in terms of service delivery, seeing many protests occurring regularly 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION International trade can be defined as the exchange of goods and services between countries globally. 🗸🗸 These trade agreements are negotiated by protocols and agreement due to the uneven distribution of natural resources globally. 🗸🗸

BODY-MAIN PART The main reasons for international trade.

Demand reasons The size of the population impacts demand.

• If there is an increase in population growth, it causes an increase in demand, as more people’s needs must be satisfied. 🗸🗸
• Local suppliers may not be able to satisfy this demand. 🗸🗸

The population’s income levels effect demand.

• Changes in income cause a change in the demand for goods and services. 🗸🗸 • An increase in the per capita income of people in more disposable income that can be spent on local goods and services, some of which may then have to be imported. 🗸🗸

An increase in the wealth of the population leads to greater demand for goods.

• People have access to loans and can spend more on luxury goods, many of which are produced in other countries. 🗸🗸

Preferences and tastes can play a part in the determining of prices,

•  E.g. customers in Australia have a preference for a specific product which they do not produce and need to import and it will have a higher value than in other countries. 🗸🗸

The difference in consumption patterns is determined

• By the level of economic development in the country, e.g. a poorly developed country will have a high demand for basic goods and services but a lower demand for luxury goods. 🗸🗸

Supply reasons Natural resources are not evenly distributed

• Across all countries of the world. 🗸🗸
• They vary from country to country and can only be exploited in places where these resources exist. 🗸🗸

Climatic conditions

• Make it possible for some countries to produce certain goods at a lower price than other countries, e.g. Brazil is the biggest producer of coffee. 🗸🗸

Labour resources

• Differ in quantity, quality and cost between countries. 🗸🗸
• Some countries have highly skilled, well-paid workers with high productivity levels, e.g. Switzerland. 🗸🗸

Technological resources

•  Are available in some countries that enable them to produce certain goods and services at a low unit cost, e.g. Japan. 🗸🗸

Specialisation in the production

• Certain goods and services allows some countries to produce them at a lower cost than others, e.g. Japan produces electronic goods and sells these at a lower price. 🗸🗸

Capital allows developed countries

• Enjoy an advantage over underdeveloped countries. 🗸🗸
• Due to a lack of capital, some countries cannot produce all the goods they require themselves. 🗸🗸

ADDITIONAL PART

• Buying and selling goods and services from other countries: 🗸🗸
• The purchase of goods and services from abroad that leads to an outflow of currency from SA- Imports (M). 🗸🗸
• The of goods and services to buyers from other countries leading to an inflow of currency to SA – Exports (X) 🗸🗸
• Different factor endowments mean some countries can produce goods and services more efficiently than others- specialisation is therefore possible: 🗸🗸

Absolute Advantage:

• Where one country can produce goods with fewer resources than other. 🗸🗸

Comparative Advantage:

• Where one country can produce goods at a lower opportunity cost it sacrifices less resources in production. 🗸🗸

CONCLUSION International trade is important of countries to survive economically, as barriers to trade would disadvantage all countries, due to their interdependency globally. 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

ECONOMIC PURSUITS-PAPER 1

Discuss in detail export promotion (Protectionism and Free Trade)

INTRODUCTION Export promotion refers to measures taken by governments increase production of goods and services that can be exported. The government provides incentives to encourage production 🗸🗸 [Max 2]

BODY: MAIN PART REASONS:

• Export promotion measures lower cost of production which makes it easier to compete on the international market 🗸🗸
• Achieve significant export-led economic growth🗸🗸
• Export enlarges production capacity of country because more and larger manufacturing industries are established. 🗸🗸
• The first step to export-led economic growth is to implement policies that encourage the establishment of industries to produce goods and services for export markets🗸🗸

METHODS: Exports are promoted through: Incentives🗸

• Export incentives include information on export markets, research with regard to new markets, concessions on transport charges, export credit and export credit guarantees and publicity commending successful exporters🗸🗸
• This will encourage manufacturers to export an increased volume of their production🗸🗸
• Trade missions help to market SA products abroad🗸🗸and supply SA companies with information about potential markets 🗸🗸

Direct Subsidies🗸

• Described as direct because it involves government expenditure. 🗸🗸
• Include cash payments to exporters, refunds on import tariffs and employment subsidies.
• The aim is to increase the competitiveness of exporting company🗸🗸 reduce cost of production🗸🗸and explore and establish overseas markets🗸🗸

Indirect subsidies

• Regarded as indirect because it results in the government receiving less revenue🗸🗸 e.g. general tax rebates,
• Tax concessions on profits earned from exports or on capital invested to produce export goods, refunding
•  Of certain taxes e.g. custom duties on imported goods used in the manufacturing process🗸🗸
• Allows companies to lower their prices and enables them to compete in international markets🗸🗸
• Challenge for governments to design incentives and subsidies in such a way that prices of export goods can't be viewed as dumping prices🗸🗸

Trade neutrality 🗸

• Can be achieved if incentives in favour of export production are introduced
• Up to point that neutralises the impact of protectionist measures in place🗸🗸
• E.g. subsidies equal to magnitude of import duties can be paid🗸

Export processing zones (EPZs) 🗸

• Is free-trade enclave within a protected area –
• Is fenced and controlled industrial park that falls outside
• Domestic customs area, and usually located near harbour or airport 🗸🗸 NOTE : For the response with regard to the effectiveness of export promotion methods, a maximum of 5 marks can be allocated.
• No limitations on size and scale since world market is very large🗸🗸
• Cost and efficiency of production based on this and organised along lines of comparative advantage🗸🗸
• Increased domestic production will expand exports to permit more imports and may result in backward linkage effects that stimulate domestic production in related industries🗸🗸
• Exchange rates are realistic and there is no need for exchange control and quantitative restrictions🗸🗸
• Value can be added to natural resources of the country 🗸🗸
• Creates employment opportunities 🗸🗸
• Increase in exports has positive effect on balance of payments 🗸🗸
• Increase in production leads to lower domestic prices, which benefit local consumers🗸🗸

DISADVANTAGES

• Real cost of production 🗸 subsidies and incentives reduce total cost of production which must be met from sales🗸🗸 real cost is thus concealed by subsidies🗸🗸products cannot compete in open market 🗸🗸
• Lack of competition 🗸 businesses charge prices that are so low that they force competitors out of the market 🗸🗸
• Increased tariffs and quotas 🗸can be against spirit of provisions of WTO🗸🗸overseas competitors retaliate with tariffs and quotas🗸🗸 goods are sold domestically below their real cost of production (export subsidies and dumping) 🗸🗸
• Protection of labour-intensive industries 🗸 developed countries maintain high levels of effective protection for their industries that produce labour-intensive goods in which developing countries already have or can achieve comparative advantage 🗸🗸
• Withdrawal of incentives often leads to closure of effected companies. 🗸🗸
• Incentives often lead to inefficiencies in the production process, since companies don't have to do their best to compete🗸🗸
• Can be seen as dumping 🗸🗸 [Max 26]

BODY: ADDITIONAL PART How successful is South Africa in protecting the local textile industry against foreign competition?

• Not successful: 🗸 Many domestic textile manufacturers closed down due to unfair international competition 🗸🗸 Many wholesalers make use of suppliers from abroad 🗸🗸 e.g. Woolworths/Walmart🗸
• Dumping still occurs – European manufacturers still dump clothing in Africa out of season at prices below cost 🗸🗸 Job losses due to a lack of protection in this industry 🗸🗸 [Accept any motivation relating to success indicators] [Max 10]

CONCLUSION South Africa's international trade policy facilitates globalisation thereby impacting positively on the balance of payment. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

INTRODUCTION Protectionism refers to a deliberate policy on the part of the government to erect trade barriers, such as tariffs and quotas, in order to protect domestic industries against international competition. 🗸🗸 [Accept any other relevant definition] [Max 2]

BODY-MAIN PART Raising revenue for the government

• Import tariffs raise revenue for the government. 🗸🗸
• In smaller countries the tax base is often small due to low incomes of individuals and businesses. 🗸🗸
• Low incomes do not provide much in the form of income taxes and therefore custom duties on imports is a significant source of income or revenue. 🗸🗸

Protecting the whole industrial base

• Maintaining domestic employment. 🗸🗸
• Countries with high unemployment are continuously pressured to stimulate employment creation and therefore resort to protectionism in order to stimulate industrialisation. 🗸🗸
• It is thought that using protectionism the country’s citizens would purchase more domestic products and raise domestic employment. 🗸🗸
• These measures on domestic employment creation at the expense of other countries, led to such measures as “beggar-my-neighbour” policies. 🗸🗸
• Applying import policies is likely to reduce other countries ability to buy country’s exports and may provoke retaliation. 🗸🗸

Protecting workers

• It is argued that imports from other countries with relatively low wages represent unfair competition and threaten the standard of living of the more highly paid workers of the local industries. 🗸🗸
• Local industries would therefore be unable to compete because of higher wages pushing up the price levels of goods. 🗸🗸
• Protection is thus necessary to prevent local wage levels from falling or even to prevent local businesses from closing down due to becoming unprofitable. 🗸🗸
• Competition from low-wage countries may also reflect the fact that those countries have a comparative advantage in low-skilled labour-intensive industries. 🗸🗸

Diversifying the industrial base

• Overtime countries need to develop diversified industries to prevent overspecialisation. 🗸🗸
• A country relying too heavily on the export of one or a few products is very vulnerable. 🗸🗸
• If a developing country’s employment and income is dependent on only one or two industries, there is the risk that world fluctuations in prices and demand and supply-side problems could results in significant fluctuations in domestic economic activity. 🗸🗸
• Import restrictions may be imposed on a range of products in order to ensure that a number of domestic industries develop. 🗸🗸

Develop strategic industries

• Some industries such as the iron-ore and steel, agriculture, (basic foodstuffs, such as maize), energy (fuels) and electronics (communication) among others, are regarded as strategic industries. 🗸🗸
• Developing countries may feel that they need to develop these industries in order to become self-sufficient . 🗸🗸

Protecting specific industries Dumping

• Foreign industries may engage in dumping because government subsidies permit them to sell at very low prices or because they are seeking to raise profits through price discrimination. 🗸🗸
• The reason for selling products at lower prices may be to dispose of accumulate stocks Of the goods and as a result consumers in the importing country stand to benefit however,
• Their long term objective may be to drive out domestic producers and gain control of the market and consumers
• Are likely to lose out in the reduction in choice and higher prices that the exporters will be able to charge. 🗸🗸

Infant industries

• Usually newly established and find it difficult to survive due to their average costs being higher than that of their well-established foreign competitors. 🗸🗸
• However, if they are given protection in their early years they may be able to grow and Thereby take advantage lower their average costs and become competitive and at this point protection can be removed. 🗸🗸

Declining industries/sunset industries

• Structural changes in the demand and supply of a good may severely hit an industry such industries should be permitted to go out of business gradually declining industries
• Are likely to be industries that no longer have a comparative advantage and however, if they go out of business quickly there may be a sudden and large increase in unemployment. 🗸🗸
• Protection may enable an industry to decline gradually thereby allowing time for resources including labour to move to other industries. 🗸🗸
• Protecting domestic standards domestic regulations of food safety human rights and environmental standards have been increasingly acting as trade restrictions. 🗸🗸 [Accept any other relevant fact] [Max 26]

ADDITIONAL PART South Africa promotes exports through subsidies

Direct Subsidies

• Strict screening measures should be put in place when companies apply for financial assistance. Government expenditure can provide direct financial support to domestic producers for their exports e.g. 🗸🗸
• Cash grants offered to South African exhibitors to exhibit their products at exhibitions overseas. To explore new markets. 🗸🗸
• Foreign trade missions to explore new markets imposition of tariffs on imports. 🗸🗸
• Funds for the formation of formal export councils. 🗸🗸
• Subsidies for training or employing personnel. 🗸🗸
• Funds for the export market research. 🗸🗸
• Product registration and foreign patent registrations. 🗸🗸
• Government can refund companies certain taxes to promote exports.
• These types of indirect subsidies are:
• General tax rebates (Part of the cost of production can be subtracted from the tax that has been paid) 🗸🗸
• Tax concessions on profits earned from exports or on capital invested to produce export goods. 🗸🗸
• Refunds on import tariffs in the manufacturing process of exported goods companies often use custom duties are paid on these goods and the government refunds them. 🗸🗸 [Max 10]

CONCLUSION Most countries agree that protectionism is harmful to the economy if not well managed. Protectionism is needed especially where industries are young and need expansion or development. 🗸🗸 [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION Economic growth is responsible for the overall growth of the economy, in order to enhance the well being of the economy as a whole. Whereas economic development would focus on the individual well being of the citizens of a country. [Any other relevant higher order conclusion] [Max 2]

BODY-MAIN PART Growth and Development A demand-side approach includes discretionary changes in monetary and fiscal policies with the aim of changing the level of aggregate demand. 🗸🗸

Monetary policy

• Is driven by the South African Reserve Bank (SARB). 🗸🗸
• It aims to stabilise prices by managing inflation. 🗸🗸

Fiscal policy

• Is driven by the Department of Finance. 🗸🗸
• It aims to facilitate government, political and economic objectives. 🗸🗸
• A demand-side approach to economic growth and development does not only depend on fiscal and monetary policy. 🗸🗸
• It is dependent on all components of aggregate demand, that is, C, I, X and G. 🗸🗸

South African approach

• The South African approach uses both monetary and fiscal measures to influence aggregate demand in the economy. 🗸🗸
• The South African Reserve Bank (SARB) as the central bank in South Africa formulates the monetary policy. 🗸🗸
• They use the following instruments:

Interest rate changes

• It is used to influence credit creation by making credit more expensive or cheaper. 🗸🗸
• The exchange rate is stabilised by encouraging inflow or outflows. 🗸🗸

Open market transactions

• To restrict credit the SARB sells securities. When banks buy these securities money flows from banks to the SARB. 🗸🗸
• The banks have less money to lend and cannot extend as much credit as before. 🗸🗸
• To encourage credit creation the SARB buys securities. Money flows into the banking system.🗸🗸

Moral suasion

• The SARB consults with banks to act in a responsible manner based on the prevailing economic conditions. 🗸🗸

Cash Reserve Requirements

• Banks are required to hold a certain minimum cash reserve in the central bank. 🗸🗸
• Banks have a limited amount to give out as credit. 🗸🗸
• South Africa’s fiscal policy is put into practice through the budgetary process. 🗸🗸
• The main purpose of fiscal policy is to stimulate macroeconomic growth and employment, and ensure redistribution of wealth. 🗸🗸
• The following instruments are used:

Progressive personal income tax

• Higher income earners are taxed at higher tax rates. 🗸🗸
• These taxes are used to finance social development. 🗸🗸
• The poor benefit more than those with higher incomes. 🗸🗸

Wealth taxes

• Properties are levied (taxed) according to their market values. 🗸🗸
• Transfer duties are paid when properties are bought. 🗸🗸
• Securities (shares and bonds) are taxed when traded. 🗸🗸
• Capital gains tax is levied on gains on the sale of capital goods (e.g. properties, shares). 🗸🗸
• Estate duties are paid on the estates of the deceased. 🗸🗸
• These taxes are used to finance development expenditures which benefit the poor more  often. 🗸🗸

Cash benefits

• Old age pensions, disability grants, child support and unemployment insurance are cash grants. These are also known as social security payments. 🗸🗸
• Benefits in kind (natura benefits) 🗸🗸
• These include the provision of healthcare, education, school meals, protection etc. 🗸🗸
• When user fees are charged, poor or low income earners pay less or nothing. 🗸🗸
• Limited quantities of free electricity and water are provided. 🗸🗸

Other redistribution

• Public works programmes, e.g. the Strategic Integrated Projects (SIP) provides employment subsidies and other cash and financial benefits such as training, financing and export incentives.🗸🗸

Land restitution and land redistribution

• Land restitution is the return of land to those that have lost it due to discriminatory laws in the  past. 🗸🗸
• Land redistribution focuses on land for residential (town) and production (farm) for previously disadvantaged groups. 🗸🗸
• The money for these programmes is provided in the main budget. 🗸🗸

Subsidies on properties

• It helps people to acquire ownership of fixed residential properties. 🗸🗸
• E.g. government’s housing subsidy scheme provides funding to all people earning less than  R3 500 per month🗸🗸

CONCLUSION The demand-side approach focuses on the expansion of the demand for goods and services produced in the economy. 🗸🗸 OR To ensure economic growth, there should be an adequate and growing demand for goods and services produced in the economy. 🗸🗸

[Any other relevant higher order conclusion] [Max 2]

INTRODUCTION Different growth and development strategies have been implemented in South Africa since 1994, each aimed at addressing particular needs at the time of introduction. 🗸🗸 [Any other relevant introduction] [Max 2]

BODY-MAIN PART The Reconstruction and Development Programme (RDP)

• The RDP was an integrated, coherent socio-economic policy framework that was implemented directly after our first democratic elections in 1994. 🗸🗸
• It seeked to mobilise all our people and our country’s resources toward the final eradication of apartheid and the building of a democratic, non-racial and non-sexist future. 🗸🗸

The RDP was based on six principles.

• an integrated and sustainable programme. 🗸🗸
• a people-driven process focusing on the needs of the population. 🗸🗸
• peace and security for all, aimed at a non-violent society that respects all human rights. 🗸🗸
• nation-building, focusing on the needs of all members of society. 🗸🗸
• linking reconstruction and development. 🗸🗸
• The RDP consisted of many proposals, strategies and policy programmes.
• All of these could, however be grouped into five major policy programmes that were linked to each other.

The five key programmes were:

• meeting basic needs. 🗸🗸
• developing our human resources. 🗸🗸
• building the economy. 🗸🗸
• democratising the state and society. 🗸🗸
• implementing the RDP. 🗸🗸

The Growth, Employment and Redistribution Programme (GEAR)

• The GEAR built upon the strategic vision set out in the RDP, i.e. 🗸🗸
• The importance of all the objectives of the RDP was reaffirmed but it recognized the implementation and macroeconomic problems that the government had been experiencing in implementing the RDP. 🗸🗸
• The RDP placed much more emphasis on disciplined economic policy. 🗸🗸
• While still recognizing that there were very serious needs that had to be addressed. 🗸🗸

The Accelerated and Shared Growth Initiative for South Africa Programme (AsgiSA).

• AsgiSA resulted from government’s commitment to halve unemployment and poverty by 2014. 🗸🗸
• The Joint Initiative on Priority Skills Acquisition (Jipsa) was established to address the scarce and critical skills needed to meet AsgiSA’s objectives. 🗸🗸

AsgiSA identified six important factors that prevented growth:

• the relative volatility of the currency. 🗸🗸
• the cost, efficiency and capacity of the national logistics system. 🗸🗸
• shortages of suitably skilled labour, and the spatial distortions of apartheid affecting low-skilled labour costs. 🗸🗸
• barriers to entry, limits to competition and limited new investment opportunities. 🗸🗸
• the regulatory environment and the burden on small and medium enterprises (SME’s). 🗸🗸
• AsgiSA was not intended to be a government programme. 🗸🗸
• But rather a national initiative supported by all the key groups in the economy. 🗸🗸
• Namely business, labour, entrepreneurs and government and semi-government departments and institutions. 🗸🗸

Joint Initiative on Priority Skills Acquisitions (JIPSA)

• It is the skills development arm of ASGISA. Focus is on skills development, especially through the SETAS. 🗸🗸

Expanded Public Works Programme (EPWP)

• It is a nationwide government intervention to create employment using labour-intensive methods, and to give people skills they can use to find jobs when their work in the EPWP is done. 🗸🗸

The New Growth Path (NGP)

• The New Growth Path (NGP) was released in November 2011. 🗸🗸
• This plan is designed to serve as a framework for economic policy, and to be the driver of the country’s job strategy. 🗸🗸

The New Growth Path therefore proposes certain strategies to ensure adequate demand:

• Deepening the domestic and regional market by growing employment. 🗸🗸
• Increasing incomes and undertaking other measures to equity and income distribution. 🗸🗸
• Widening the market for South African goods and services through a stronger focus on exports to the region and other rapidly growing economies. 🗸🗸
• On a macroeconomic level the NGP entails accommodating or looser monetary policy combined with stricter fiscal policy to limit inflationary pressures and enhance competitiveness. 🗸🗸
• Government spending will be prioritised with the objective of long-term sustainable employment opportunities. 🗸🗸

The microeconomic measures to control inflationary pressures include the following:

• A competition policy to supervise monopoly pricing on products and services. 🗸🗸
• A review of administered prices to ensure that they do not increase above inflation without compelling reasons. 🗸🗸
• Interventions in the case of rapidly rising prices of essential products and services such as private🗸🗸
• Healthcare and basic food items. 🗸🗸
• Active industrial policy. 🗸🗸
• Rural development policy. 🗸🗸
• Competition policy. 🗸🗸
• Stepping up education and skills development. 🗸🗸
• Enterprise development: promoting small business and entrepreneurship; eliminating unnecessary red tape. 🗸🗸
• Broad-based Black Economic Empowerment (BBBEE). 🗸🗸
• Labour practices. 🗸🗸
• Technology policy. 🗸🗸
• Developmental trade policies. 🗸🗸
• Policies for African development. 🗸🗸 
• The different growth and development strategies that have been implemented in South Africa since 1994. 🗸🗸
• Have all contributed to making our country more prosperous and to address problems created by inequalities of the past. 🗸🗸
• However, problems such as a low level of education, unemployment and unequal distribution of income persist. 🗸🗸
• The current NGP is a comprehensive policy that is focused on addressing all of these problems. [Any other relevant higher order conclusion] [Max 2]

INTRODUCTION South Africa’s overall objective of Industrial Development Policy is to ensure international competitiveness in its nine provinces. OR Regional development is aimed at increasing the economic livelihood of specific areas or regions. OR Regional development attempts to limit the negative effects of economic activities in only a few areas. OR It attempts to promote the advantages of a more even regional development by using labour and other natural resources and infrastructure in neglected areas. [Accept any relevant introduction] [Max 2]

BODY-MAIN PART SPATIAL DEVELOPMENT INITIATIVES

• SDI Programme attracts infrastructure and business investments to underdeveloped areas to create employment. 🗸🗸
• Department of Trade and Industry is driving force behind industrial and spatial development. 🗸🗸
• DTI plans together with central, provincial and local government, IDC, parastatals and research institutions. 🗸🗸
• Industrial Development Policy Programme (Spatial Development) has 2 focus points spatial development initiative (SDI) and financial incentives. 🗸🗸
• SDI refers to government’s initiative and economic development potential of certain specific spatial locations in SA. 🗸🗸

Key Objectives:

• Stimulate economic activity in selected strategic locations. 🗸🗸
• Generate economic growth and foster sustainable industrial development. 🗸🗸
• Develop projects of infrastructure in certain areas and finance them through lending and private sector investment. 🗸🗸
• Establish private-public partnerships (PPP’s). 🗸🗸

In areas with high poverty and unemployment, SDI focuses on:

• High level support in areas where socio-economic conditions require concentrated government assistance. 🗸🗸
• Where inherent economic potential exists. 🗸🗸
• The approach is towards international competitiveness, regional cooperation and a more diversified ownership base. 🗸🗸

Some of the main focus points of the SDI Programme are:

• Lubombo Corridor (agro-tourism, education, craft, commercial and agricultural sectors); 🗸🗸
• KwaZulu-Natal (Ports of Durban and Richards Bay); 🗸🗸
• West Coast SDI (fishing and industrial ports); 🗸🗸
• Coast-2-Coast Corridor with agro-tourism. 🗸🗸
• It also makes it possible for private sector businesses to take advantage of the economic potential of underdeveloped areas in private-public partnerships (PPP’s) 🗸🗸
• In PPP a private business may provide the capital to build the factory and to buy raw materials and employ labour, while the government provides the capital for the infrastructure such as roads and water and electricity. 🗸🗸
• The business benefits from profits and the government benefits from taxes, levies and employment opportunities. 🗸🗸

There are TWO types of PPP’s which are compensated differently: Unitary payments:

• Private sector builds and runs a project (it performs the function on behalf of the public sector); the payment provides an acceptable return on the total investment (building cost, maintenance, operational expenses). 🗸🗸
• Private sector constructs the project and then is given the right to change a toll fee (e.g. public road); 🗸🗸
• The toll covers costs of construction, maintenance, operation. 🗸🗸
• The above options can be combined: E.g. hospital (cost of building is an annual payment and a user fee is also charged). 🗸🗸
• A track of land that forms a passageway allowing access from one area to another and particular advantages to mining, manufacturing and other businesses. 🗸🗸
• Domestic Corridor: e.g. Lubombo, West Coast, Fish River. 🗸🗸
• Corridors beyond the South African Borders (SADC) e.g. Maputo Development Corridor Mozambique. 🗸🗸
• Reasons in support of South Africa’s regional integration in Southern Africa: have political and stable neighbours have important export markets and a future source of water and energy supplies integration may be a precondition for support from foreign investors, donors and multilateral institutions. 🗸🗸
• A robust regional transport system and a solid infrastructure base hold the key to attracting investment into the SADC region – improving competitiveness and promoting trade. 🗸🗸

Advantages from Corridor development:

• Greater levels of economic efficiency and productivity compact urban form corridor urban form. 🗸🗸
• Corridor developments will often occur due to private investment. 🗸🗸
• Intergration of land use and transport planning will lead to generally efficient integration. 🗸🗸
• Efficient urbanisation leads to efficient use of land and promotion of an efficient transport system. 🗸🗸

INDUSTRIAL DEVELOPMENT ZONES (IDZ’s)

• Geographically designed, purpose-built industrial sites providing services tailored for export- orientated industries. 🗸🗸
• Physically enclosed and linked to an international port or airport. 🗸🗸
• Specifically designed to attract new investment in export-driven industries. 🗸🗸
• Falls outside domestic customs zones and able to import items free of customs and trade restrictions, add value and then export their goods. 🗸🗸
• Development and management done by private sector. 🗸🗸
• Government IDZ policy designed to boost exports and jobs. 🗸🗸
• IDZ’s aim to encourage economic growth –attract foreign investment in industrial development – facilitate international competitiveness regarding manufacturing. 🗸🗸 [Max 26]

ADDITIONAL PART FINANCIAL INCENTIVES Small and Medium Enterprise Development Programme (SMEDP) • This incentive has provided a tax-free cash grant for investment in industries in

• South Africa. 🗸🗸
• E.g. manufacturing, agricultural, processing, aquaculture and tourism. 🗸🗸

Critical Infrastructure Fund Programme (CIF)

• A tax-free cash grant incentive for projects has improved critical infrastructure in  South Africa. 🗸🗸
• E.g. for installation, construction of infrastructure, payment of employees, materials directly consumed during installation. 🗸🗸

Duty Free Incentives (for businesses operating in the IDZ’s)

• This has encouraged export-orientated manufacturing to increase their competitiveness 🗸🗸
• And helped to promote foreign and local direct investment. 🗸🗸

Foreign Investment Grant (FIG)

• This has assisted foreign investors to invest in new manufacturing businesses in SA. 🗸🗸
• Benefited in terms of the cost of relocating new machinery and equipment from abroad. 🗸🗸

Strategic Investment Projects (SIP)

• This has attracted investment from local and foreign entrepreneurs in manufacturing, computer, research and engineering sectors. 🗸🗸

Skills Support Programme (SIP)

• This cash grant for skills development has encouraged greater investment 🗸🗸
• In training in general and stimulated the development of new advanced skills. 🗸🗸

Black Businesses Supplier Development Programme (BBSDP)

• This 80 % cash grant has provided black-owned enterprises with access to 🗸🗸
• Training which has improved management of their enterprises. 🗸🗸

Special Economic Zones (SEZ)

• It is an extention to the current financial incetives to further promoted regional development. 🗸🗸
• The major incentive is a tax reduction of 15 % for businesses settling in this area. 🗸🗸
• This does not mean that existing businesses in the IDZ can relocate to take advantage of this incentive. 🗸🗸
• If a current business in the IDZ wants to expand they are allowed. 🗸🗸 [Max 10]

CONCLUSION From the above discussion it is clear that different initiatives form part of South Africa’s Regional Industrial Development Programme. [Max 2]

INTRODUCTION Economic indicators are used to evaluate the economic performance of an economic unit. This unit can be a company, an industry, a country or a region. Macro-economic indicators, measures the economic performance of a country as a whole. 🗸🗸

BODY-MAIN PART Such indicators can provide an indication of:

• Changes taking place in a country. 🗸🗸
• How a country compares to other countries. 🗸🗸

Inflation Rate

• This is the general increase in the price level of goods and services in the economy over a certain period in time. E.g. one year. 🗸🗸
• This is therefore an indicator of the health of the economy and it is monitored in two ways that is at the production wholesale level producer price level (PPI) and at the retail or consumer level consumer price index (CPI) 🗸🗸

The Consumer Price Index (CPI)

• Shows the price increases of a representative (weighted) basket of goods and services that consumers buy. 🗸🗸
• It is abbreviated as CPI this cover all the urban areas. 🗸🗸
• It is an overall index and weights are obtained from expenditures of different income categories of households. 🗸🗸
• It is the most comprehensive indicator measuring consumer inflation in the country. 🗸🗸
• It shows changes in the general purchasing power of the rand and it is used for inflation targeting 🗸🗸
• Is compiled by Stats SA and measures the change in the price level of a basket of consumer goods and services. 🗸🗸
• The goods and services included in the basket are chosen to represent the goods and services purchased by an average household. 🗸🗸
• This basket is adjusted from time to time as consumption patterns change. 🗸🗸
• The inflation rate is the percentage change in the CPI from the previous year and can be calculated as follows:
• Change in CPI x 100 🗸🗸        CPI

The Production Price Index (PPI)

• Used to measure the price of goods that are produced domestically when they leave the factory year. 🗸🗸
• The goods that are imported when they enter the country (at a port) and both of these are before consumers become involved. 🗸🗸
• PPI consists of three baskets that are domestically manufactured outputs, e.g. changes in the PPI can be made monthly or quarterly or yearly. 🗸🗸
• While changes in the imported products and exported commodities are given separately in the same report. 🗸🗸
• PPI includes capital and intermediate goods but not services. 🗸🗸
• It is based on a completely different type of a basket of items in the CPI. 🗸🗸
• It measures the cost of production rather than the cost of living. 🗸🗸
• It is used to predict consumer goods inflation (CPI) 🗸🗸
• Which is also estimated and published on a monthly basis by Stats SA, is similar to the CPI, 🗸🗸
• Except that it also includes the prices of raw materials and intermediary goods 🗸🗸 (i.e. goods that will be finished in the production process), excludes VAT and excludes  services. 🗸🗸
• Manufactured goods included in the PPI are priced when they leave the factory, not when they are sold to consumers. 🗸🗸
• Unlike the CPI, the PPI therefore cannot be related directly to consumers’ living standards. 🗸🗸
• The PPI is nevertheless very useful in the analysis of inflation because it measures the cost of production. 🗸🗸
• A significant change in the rate of increase in the PPI is usually an indication that the rate of increase in the CPI will also change a few months later. 🗸🗸

The GDP Deflator Is a ratio that indicates the relationship of the GDP at nominal prices to the GDP at real prices. GDP deflator = Normal GDP x 100 🗸🗸                            Real GDP 

Nominal GDP

• Is the value of total gross domestic product measured at current prices. 🗸🗸
• While the real GDP is the value of total gross domestic product measured at constant prices.🗸🗸
• So, the GDP deflator includes changes in the prices of exports but not of imports. 🗸🗸
• In a small open economy, like that of South Africa where both, imports and exports are significant in relation to the total size of the economy. 🗸🗸
• The exclusion of import prices is an important shortcoming. 🗸🗸

Unemployment rate

• In terms of economic development, employment is a very important indicator. 🗸🗸
• Employment is, however, not very easy to measure as so many people are employed in the informal sector which is not recorded. 🗸🗸
• The concept of underemployment is also important. 🗸🗸
• This is when someone is employed in a position that requires less skill than their ability. 🗸🗸
• For example when a qualified accountant works as a delivery person because he or she cannot find employment as an accountant. 🗸🗸
• Someone may also be employed on a part-time basis but would prefer to work full time. 🗸🗸
• A labour force survey is published quarterly by Stats SA. 🗸🗸
• This publication contains information and statistics concerning a variety of issues related to the labour market, including the official unemployment rate. 🗸🗸
• It is a comprehensive survey and provides information on changes in employment in different provinces and industries. 🗸🗸
• Employment in the informal sector, and even reasons for changes in employment figures. 🗸🗸
• The unemployment rate is a percentage of the total labour force. 🗸🗸
• The total labour force includes all employed people and unemployed people who are looking for work. 🗸🗸
• The unemployment rate is a lagging indicator, which means that it will only change a few periods after the trend in the economy has changed. 🗸🗸
• For example if the economy starts growing at a faster pace. 🗸🗸
• The unemployment rate will only react to the growth after two or three quarters. 🗸🗸

Interest rates

• Interest rates are important indicators of future economic activity, as the interest rate level is usually an important determinant when economic decisions are being taken. 🗸🗸
• Both the general interest rate level and the structure of interest rates are important indicators.🗸🗸
• There are many interest rates in the economy. 🗸🗸
• Some are short term rates, such as the repo rate, which is the interest rates at which South Africa banks borrow from the Reserve Bank to finance their liquidity deficit. 🗸🗸
• The difference between the short term interest rates and long term interest rates: 🗸🗸
• Is called the interest rate spread and the term structure of interest rates provides an indication of the interest rates levels on loans or investments of different maturities. 🗸🗸
• Usually we can expect the interest rates level in a developing country to be higher than the interest rate in a developed economy. 🗸🗸
• This is due to the higher risk attached to the developing economy. 🗸🗸
• Factors such as political and economic uncertainty cause this higher risk. 🗸🗸
• Developing economies also need to attract foreign investment to their country  to finance growth. 🗸🗸
• Investors’ funds will move towards the highest yield and thereof. 🗸🗸
• Developing countries cannot allow interest rates in their countries to become too low. 🗸🗸

Money Supply

• The increase in the M3 money supply is an important economic indicator. 🗸🗸
• If M, the money supply increases, this means that either (P) prices or Y (output) has to respond to the increase in M. 🗸🗸
• Therefore, an increase in the money supply is an important indicator showing that output will increase. 🗸🗸
• Whether this will translate to an increase in real production or the price level will depend on factors like production within the economy. 🗸🗸
• In addition to economic growth the employment of people of working age (15 -64 years) is a majot economic objective. 🗸🗸
• We need to know more than this; we need to know who the people are that need to be employed. 🗸🗸
• The numbers are determined, not only by age, but also by people’s willingness to work. 🗸🗸

The Economically Active Population (EAP)

• The EAP is also known as the labour force. 🗸🗸
• It consists of people between the age of 15 and 64 who are willing to work for income in cash or in kind and includes: 🗸🗸
• Workers in the formal sector- workers in the informal sector. 🗸🗸
• Employers any one 🗸🗸
• Self employed persons. 🗸🗸

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Unemployed Persons

• The 2021 estimate of the South African population was million people. 🗸🗸
• The EAP numbered million ( % of the population). 🗸🗸

The Employment Rate

• The number of employed persons expressed as a percentage of the EAP gives the employment rate. 🗸🗸
• The employment rate can also be converted into an index. 🗸🗸
• The SA employment rate was % in 2011. 🗸🗸
• This is low, compared to rates in developed and even some developing countries such as Argentina and Pakistan. 🗸🗸
•  In SA the growth in the economy is not accompanied by the similar growth in employment numbers. 🗸🗸

Employment indicators are used for:

• To calculate trends in employment in different sectors or industries. 🗸🗸
• This indicates structural changes in the economy. 🗸🗸
• To calculate productivity. 🗸🗸
• To show the success of the economy in utilizing its full potential. 🗸🗸

Unemployment Rate

• Statistics SA (SSA) obtains its labour data each year from Quarterly Labour Surveys  (QLFS). 🗸🗸
• It uses the standard definition of the International Labour Office (ILO) to calculate unemployment. 🗸🗸
• The strict definition of unemployment is used to calculate the unemployment rate. 🗸🗸
• Did not work during the seven days prior to the interview. 🗸🗸
• Want to work and are available to start work within a week of the week of the interview. 🗸🗸
• Have taken active steps to look for work or to start some form of self-employment in four week prior to the interview. 🗸🗸
• In SA the official unemployment rate was % in 2021. 🗸🗸
• In developed countries, change in the unemployment rate trigger responses. 🗸🗸
• From governments to fine-tune the economy. 🗸🗸
• Increases require more funds for unemployment insurance (UIF) drawings. 🗸🗸
• In developing countries, unemployment is the most important cause of poverty. 🗸🗸 [Accept current statistical data] [Max 16]
• To give a policy direction in the country. 🗸🗸
• To develop mechanism to caution the most affected sectors of the economy promptly
• e.g.during the 2019-2020 recession/pandemic some companies required a bail out from the government. 🗸🗸
• Develop some economic stabilisers to defuse the huge impact that may result from the unexpected economic downturn. 🗸🗸
• Open some other alternative markets for their goods and services. 🗸🗸
• To do research and advice the business community before the actual moment hits. 🗸🗸
• It can be used to stimulate thinking and growth in a number of sectors in the Economy. 🗸🗸 [Accept any relevant consideration] [Max 10]

CONCLUSION Countries cannot survive and grow their economies if they do not pay attention to economic indicators for their planning processes. [Accept any relevant consideration] [Max 2]

INTRODUCTION Social indicators also called human development indicators as they promote improvement in the standard of living. 🗸🗸 [Any other relevant definition] [Max 2]

BODY-MAIN PART Demographics

• This is the description of the physical population and its composition.
• To get this a census is done regularly to obtain this information. 🗸🗸

Human development Index (HDI)

•  This is a measure of people’s ability to live long and healthy lives, to communicate, 🗸🗸
•  To participate in the community and to have sufficient income to experience a decent lifestyle. 🗸🗸

Human poverty index (HPI)

•  It measures life expectancy is measured by the percentage of newborns not expected to survive to age 40. 🗸🗸
•  Lack of education is measured by the percentage of adults who are ill- educated. 🗸🗸

Health and nutrition

• Life expectancy birth. 🗸🗸
• Infant mortality rate. 🗸🗸

Nutrition indicators

• Daily calorie intake per person. 🗸🗸
• The number of children who go hungry. 🗸🗸
• These measures are important to government as they are supplying healthcare and sometime have to include legislation such as adding vitamin A to basic foodstuffs such as bread. 🗸🗸
• The standard of living of people is directly connected to their education. 🗸🗸
• Educated people are employable and can earn an income and provide for their own wants and needs. 🗸🗸

Two important measures are:

• Secondary enrolment percemtage-how many children that start Grade 1 get to Grade 8 and finish Grade 12. 🗸🗸
• Adult literacy- People over the age of 15 that can read and write. 🗸🗸
• A large percentage of the annual budget is allocated to education. 🗸🗸
• Because of our constitution certain basic services must be supplied by the government. 🗸🗸
• These services have a direct effect on people’s living standards. 🗸🗸
• Electricity 🗸🗸
• Refuse disposal🗸🗸
• Water supply🗸🗸
• Sanitation🗸🗸

Housing and urbanisation

• Urbanisation the process by which an increasing proportion of a country’s population is concentrated in its urban areas as a result of natural increase and migration from rural areas. 🗸🗸
• This measures is important as more people come to live in urban areas the greater the demand for housing, services, education, health care etc. 🗸🗸
• Housing the percentage of the population living in a permanent dwelling or house. 🗸🗸
• The government issue housing subsidies to help poor people to own a house South African citizens or permanent residents earning R3 500 or less a month could apply for this subsidy. 🗸🗸

International comparisons

• Figures collected by the World Bank, International Monetary Fund (IMF) and United Nations provide the best data for comparison purpose. 🗸🗸

Other measures used:

• Purchasing power parity (PPP) The number of units of one country’s currency that give the holder the same purchasing power as one unit of another country’s currency. 🗸🗸
• The Big Mac Index, The index is based on the price of the Big Mac around the world as compared to its price in the United States. 🗸🗸 [Max 40]

CONCLUSION From the above discussion it is clear that social indicators play a significant role in South Africa. It is, therefore, of the utmost importance that we should study their uses in depth. [Max 2]

MICROECONOMICS-PAPER 2

INTRODUCTION A perfect market is a market structure which has a large number of buyers and sellers.  OR The market price is determined by the industry (demand and supply curves).  OR This means that individual businesses are price takers, i.e. they are not able to influence prices. OR Perfect competition is an imaginary situation, whereas monopolistic competition is a reality. 🗸🗸 [Accept any other relevant introduction] [Max 2] 

BODY-MAIN PART

• The indicating of the equilibrium positions on the perfect market structure is of utmost importance because from this point where MC = MR
• The dotted lines will be drawn to show economic profit or economics loss. 
• Where the dotted lines intersect the AC and AR curves either normal profit or economic profit or economic loss will be indicated and shadowed.

Mark allocation for graph:

• Position / shape of MC curve = 1 mark
• MR curve = 1 mark
• Position / shape of AC curve = 2 marks
• Equilibrium point = 1 mark
• Indication of price / quantity = 1 mark
• Shading of economic loss = 2 marks MAX MARKS = (8)

Allocate marks on the graph according to the rubric provided and if facts are duplicated again in writing, do not allocate marks. Max of 8 marks.

• Equilibrium is at E 1 i.e. where MC = MR 
• At this point Q 1 goods are produced at a price of P 1  
• The averages cost for Q 1 units is point R on the AC curve 
• Price / AR is greater than AC ( TR > TC)
• Therefore economic profit is represented by the area P 1 SRE 1  
• Equilibrium is at E 1 i.e. where MC = MR
• At equilibrium (point E 1 ) average cost is equal to price 
• The AC curve is tangent to the demand curve which means that P/AR = AC (TR = TC) 
• The business makes normal profit which is the minimum earnings required to prevent the entrepreneur from leaving the industry. 
• Equilibrium is at E1, i.e. where MC = MR 
• At this point Q1 goods are produced at a price of P1 
• At equilibrium (point E1) price/AR is less than average cost/the AC curve is lies above the demand curve which means that P/AR < AC (TR < TC) 
• The business makes an economic loss A maximum of 24 marks will be allocated for graph illustration and analysis: 8 marks max per graph illustration - (Max 26 marks)

ADDITIONAL PART CONDITIONS For a market to successfully operate under perfect competition, the following conditions should prevail at the same time:

• No firm can influence the market price (price takers) due to a large number of buyers and sellers 
• Products are identical (homogeneous) 
• There are no barriers of entry, meaning that there is freedom of entry and exit 
• Buyers and sellers act independently - no collusion between sellers 
• No government interference to influence the market – the market is unregulated 
• Free movement between markets - all factors of production are completely mobile 
• Both buyers and sellers have full knowledge of all the prevailing market conditions (perfect information) 
• If any of the above conditions are not met, the market is regarded as an imperfect market Any 5 x 2 = [Max 10 marks]

CONCLUSION Freedom of entry and exit into the perfect market alter the supply of goods on the market. This will result in changes in price which influences the profit or loss of a business.  If price falls to a level where it is equal to the AVC then the firm will shut-down.  [Max 2] Discuss the monopoly in detail (with/without the aid of graphs) (Imperfect Market)

INTRODUCTION A firm is regarded as a monopolist when it owns or controls the total supply of a scarce factor of production. Monopoly is a market structure where only one seller operates. 🗸🗸

BODY: MAIN PART The characteristics of a monopoly

Number of firms

• The monopoly consists out of one single firm. 🗸🗸
• The monopoly is also the industry. 🗸🗸
• Example: Eskom or De Beers – diamond-selling 🗸🗸 [Accept any other relevant example]

Nature of product

• The product is unique with no close substitute. 🗸🗸
• Example: Diamonds are unique. 🗸🗸

Market entry

• Refers to how easy or difficult it is for businesses to enter or to leave the market 🗸🗸
• Is entirely/completely blocked. 🗸🗸
• Economies of scale 🗸🗸
• Limited size of the market 🗸🗸
• Exclusive ownership of raw materials 🗸🗸
• Licensing 🗸🗸
• Sole rights 🗸🗸
• Import restrictions 🗸🗸

They decide on their production level

• The monopolist cannot set the level of output and the price independently of each other. 🗸🗸
• If a monopolist wants to charge a higher price, it has to sell fewer units of goods. 🗸🗸 Alternatively, a reduction in price will result in a higher output sold. 🗸🗸
• A monopolist is confronted with a normal market demand curve 🗸🗸
• The demand curve slopes downwards from left to right 🗸🗸
• Any point on the monopolist’s demand curve (D) is an indication of the quantity of the product that can be sold and the price at which it will trade. 🗸🗸

They are exposed to market forces

• Consumers have limited budgets and a monopoly can therefore not demand excessive prices for its product. 🗸🗸
• The monopolist’s product has to compete for the consumer’s favour and money with all other products available in the economy. 🗸🗸

They face substitutes

• There are few products that have no close substitutes. 🗸🗸
• For example, cell phones can compete with telephone services. 🗸🗸

They may enjoy favourable circumstances

• Sometimes an entrepreneur may enjoy favourable circumstances in a certain geographical area. 🗸🗸
• For example, there may be only one supplier of milk in a particular town. 🗸🗸

They may exploit consumers

• Because a monopolist is the only supplier of a product, there is always the possibility of consumer exploitation. 🗸🗸
• However, most governments continually take steps to guard against such practices. 🗸🗸

Market Information

• All information on market conditions is available to both buyers and sellers. 🗸🗸
• This means that there are no uncertainties. 🗸🗸

Control over price

• In the case of a monopoly there are considerable price control, but limited by market demand and the goal of profit maximisation. 🗸🗸

Long-run economic profit Can be positive

• Because new entries are blocked and short-run economic profit therefore cannot be reduced by new competing firms entering the industry 🗸🗸
• The monopoly can thus continue to earn economic profit as long as the demand for its product remains intact 🗸🗸

Heading = 1 mark AC = 1 mark DD/AR = 1 mark MC = 1 mark Profit maximisation point =1 mark Labelling of the axis = 1 mark Labelling on the axis = 1 mark

Long run equilibrium of a perfect competitor

CONCLUSION A monopoly does not always make economic profit in the short run; it can also make economic loss in the short run if the total cost exceeds total revenue. 🗸🗸

INTRODUCTION

• The oligopoly is a type of imperfect market in which only a few large producers dominate the market. 🗸🗸 [Accept any other relevant and correct response]

MAIN PART Nature of product

• The product may be homogeneous in a pure oligopoly. 🗸🗸
• If the product is differentiated, it is known as a differentiated oligopoly. 🗸🗸

Market information

• There is incomplete information on the product and the prices. 🗸🗸
•  Market entry is not easy, it is limited in the sense that huge capital outlay might be necessary. 🗸🗸
• Oligopolists have considerable control over price, it can influence price, but not as much as the monopolist. 🗸🗸
• Oligopolies can frequently change their prices in order to increase their market share and this result in price wars. 🗸🗸

Mutual dependence

• The decision of one firm will influence and be influenced by the decisions of the other competitors. 🗸🗸
• Mutual dependence (interdependence) exists amongst these businesses.
• A change in the price or change in the market share by one firm is reflected in the sales of the others. 🗸🗸

Non-price competition

• Non - price competition can be through advertising, packaging, after-sales services. 🗸🗸
• Since price competition can result in destructive price wars, oligopolies prefer to compete on a different basis. 🗸🗸
• Participants observe one another carefully- when one oligopolist launches an advertising campaign, its competitors soon follow suite. 🗸🗸
• If oligopolies operate as a cartel, firms have an absolute cost advantage over the rest of the other competitors in the industry. 🗸🗸
• Collusion is a strategy used by firms to eliminate competition amongst each other. 🗸🗸
• It can be in a form of overt collusion where firms can work together to form a cartel and tacit collusion where a dominating business controls the price. 🗸🗸

Limited competition

• There are only a few suppliers manufacturing the same product. 🗸🗸

Economic profit

• Oligopolies can make an economic profit over the long term. 🗸🗸
• Abnormal profits may result to joint decision-making in an oligopoly. 🗸🗸

Demand curve

• Slope from left down to the right. 🗸🗸
• It is known as the kinked demand since it contains the upper relatively elastic slope and the lower relatively inelastic slope. 🗸🗸 [Accept any other relevant and correct response] [Max. 26]

ADDITIONAL PART Oligopolist may increase their market share using non-price competition strategies by:

• branding their product to create an impression that its product is for a particular age group or income group. 🗸🗸
• aggressive advertising which inform customers about the business or product it provides.🗸🗸
• Using appealing packaging to bring out important features of their product.
• improving their customer service in order to ensure that they return to their businesses.🗸🗸
• providing relevant and precise information, which is crucial to the customers, since there are competitors in the market, customers will patronize the businesses that provides relevant information. 🗸🗸
• extending shopping hours to the convenience of customers.
• Offering loyalty rewards to customers which will encourage their return to spend accumulated rewards. 🗸🗸  [Accept any other relevant response] [Max.10]
• In South Africa, oligopolists have been found to be illegally manipulating prices to their benefit, yet to the detriment of consumers and have been penalized for such action. 🗸🗸 [Accept any other relevant response]

Compare and contrast any TWO types of market structures (perfect to imperfect/imperfect to imperfect) in detail in terms of the following. - Number of businesses - Nature of product - Entrance - Control over prices - Information - Examples - Demand curve - Economic profit/loss - Decision-making - Collusion - Productive/Technical efficiency - Allocative efficiency (Perfect Market and Imperfect Market)

‘’Market structures are classified under Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly’’ Compare all FOUR market structures in a tabular form. NB: Learners should write in full sentences even if the comparison is done in a tabular format). (Marks depend on the combination of market structures to be examined)

PLEASE NOTE: THE ABOVE TABLE SHOULD BE VERBALLY WRITTEN AS PER ESSAY INSTRUCTION

INTRODUCTION Market failure is when the forces of supply and demand fail to allocate resources efficiently / when markets fail to allocate goods and services efficiently. 🗸🗸 [Accept any other correct introduction] [Max 2]

BODY: MAIN PART                           

1. Missing Markets

• Markets are often incomplete in the sense that they cannot meet the demand for certain goods. 🗸🗸
• Public goods:
• They are not provided by the price mechanism because producers cannot withhold the goods from non-payment and there is often no way of measuring how much a person consumes. 🗸🗸

Public goods have the following features: Non-rivalry:

• The consumption by one person does not reduce the consumption of another person e.g. a lighthouse. 🗸🗸

Non-excludability:

• Consumption cannot be confined to those who have paid, so there are free riders e.g. radio and TV in South Africa. 🗸🗸

Merit goods

• These are goods/services that are deemed necessary or beneficial to the society, e.g. education, health care etc. 🗸🗸
• These goods are highly desirable for general welfare but not highly rated by the market, therefore provide inadequate output/supply. 🗸🗸
• If people had to pay market prices for them relatively too little would be consumed – the market will fail. 🗸🗸
• The reason for undersupply of merit goods is that the market only takes the private costs and benefits into account and not the social costs and benefits. 🗸🗸

Demerit goods

• These are goods/services that are regarded as bad or harmful for consumption hence we should use less of these e.g. alcohol, cigarettes, etc. 🗸🗸
• Demerit goods lead to a lot of social costs, therefore, the government charges sin tax / excise duties to discourage the consumption of such goods. 🗸🗸
• While the market is willing to supply demerit goods, it tends to oversupply demerit goods. 🗸🗸
• Some consumers may be unaware of the true cost of consuming them. 🗸🗸

2 Lack of information

• Technical and allocative efficiency require that both producers and consumers have complete and accurate information about the costs and benefits of the goods and services produced and consumed in the market. Producers and consumers make production and consumption decisions based on the information they have. 🗸🗸
• When information is incomplete or inaccurate, it leads to wrong decisions about what to produce, how to produce and for whom to produce, and a waste of resources occurs. 🗸🗸
• Producers might not know all the different technologies and production techniques that are available and the different resources that can best be used to produce goods/services more efficiently. 🗸🗸
• Consumers might not know that the price of a product is lower from some other suppliers or about the harmful effects of a product since they might just base their decisions to consume on the information from a misleading suppliers. 🗸🗸

3. Immobility of factors of production

• Markets do not respond to changes in consumer demand if resources cannot be easily reallocated or due to a lack of information🗸🗸
• Labour takes time to move to into new occupations and geographically to meet the changes in consumer demand. 🗸🗸
• Physical capital e.g. equipment, buildings, land and raw materials can only move from one place to another at a high cost, but cannot be moved to fit a change in demand. 🗸🗸
• Technological applications change production methods e.g. use of robots rather than physical labour. It takes time for most industries to adapt. 🗸🗸
• With greater technological change there is an increasing need for workers to become flexible, to update skills, change employment, occupations and work patterns. 🗸🗸 [Max 26]
• Motivate why government has implemented a national minimum wage in the labour market. 🗸🗸
• Pressure was put on the South African government to introduce labour laws which require employers to pay minimum wages. 🗸🗸
• The application of minimum wage laws is needed to improve a redistribution of income. 🗸🗸

The main objectives were:

• To redress inequality (Gap between wealthy and poor) 🗸🗸
• To improve the standard of living. 🗸🗸
•  Government tried to protect domestic workers and farm workers — thus preventing exploitation. 🗸🗸  [Max 10] [Accept any other correct relevant response]

CONCLUSION Governments intervene in the market when market forces cannot achieve the desired output. [Max 2] [Accept any other relevant conclusion]

INTRODUCTION The purpose of government intervention is to ensure that the right quantity of resources is allocated to the production of output so that society as a whole [Accept any other relevant introduction] [Max 2] maximizes its benefits. 🗸🗸

• Sometimes government will set the price of a good or service at a maximum level that is  below the market price 🗸🗸
• The government intervene and passes a law that suppliers may not charge more than the maximum price 🗸🗸
• The immediate effect is that quantity supply will drop 🗸🗸
• The original market equilibrium price and quantity is P and Q respectively 🗸🗸
• The price set by the government is P1, at this price the demand will increase to Q1 and the supply will decrease to Q2 🗸🗸
• The difference between Q1 and Q2 is the shortfall that will be created on the market 🗸🗸
• The shortage caused by the price ceiling creates a problem of how to allocate the good since the demand has increased 🗸🗸
• Black markets start to develop [Mark allocation: Graph 6 and discussion max. 10 marks]
• The appropriate way to intervene in the market by government is by levying taxes as a method to recover external cost 🗸🗸
• The original market equilibrium at e, with P as the equilibrium price and Q as the equilibrium quantity 🗸🗸
• The tax increase will shift the supply curve to the left 🗸🗸
• New equilibrium at E1 🗸🗸
• A tax would raise the price from P to P1 🗸🗸
• The production will decrease from Q to Q1 🗸🗸 [Mark allocation: Graph total 6 marks and discussion max 10 marks]
• Explain the supply of undesirable goods in South Africa and how the government can deal with it. 🗸🗸
• Items such as cigarettes, alcohol and non-prescription drugs are examples of demerit or undesirable goods. 🗸🗸
• These goods are often over supplied in the market, due to the fact that the external cost is not added to the market price. 🗸🗸
• Some consumers may be unaware of the true cost of consuming them, their negative externalities. 🗸🗸
• Government can ban their consumption or reduce it by means of taxation. 🗸🗸
• Taxation on these products will increase the market price and hopefully the demand for these products will drop. 🗸🗸 [10 marks] [Accept any other correct relevant response]

CONCLUSION The intervention of government ensures that inefficiencies is eliminated and that the market is operating effectively 🗸🗸 [Accept any other relevant conclusion] [Max 2]

CONTEMPORARY ECONOMIC ISSUES-PAPER 2

• This is a constant and significant increase in the general price level of goods and services in the country over a certain period of time, e.g. a year. 🗸🗸 [Max 2] [Accept any relevant introduction]

BODY-MAIN PART Creditors and Debtors

• Whereas borrowers (debtors) benefit from price increases, lenders (creditors) suffer due to price increases. 🗸🗸
• This is because borrowers receive money with a relatively high purchasing power and they repay their loans with money with low purchasing power, unless interest rates are sufficient to prevent this occurrence. 🗸🗸

Salary and Wage Earners

• Price increases affect people whose incomes are relatively fixed (in other words, people whose incomes remains constant or do not increase at the same rate as prices do. 🗸🗸
• This group includes retired people, pensioners and the poor. 🗸🗸
• As prices increase, their almost fixed incomes purchase less and less. 🗸🗸
• However there are individuals and entrepreneurs whose incomes often increase at a rate that is higher than the inflation rate and they do not suffer but gain from inflation. 🗸🗸
• Globalization results in increased employment opportunities in the economy due to increased productivity, the need to produce more goods both for local and international markets rises in globalised economies. 🗸🗸
• The demand for increased skilled labour becomes a need as a result, this demand for labour benefits the local labour market in increased employment opportunities and growth. 🗸🗸

Investors and Savers

• Different types of investments are affected by inflation: Assets with fixed nominal values. 🗸🗸
• These assets have a fixed nominal value and give a return if they are held until maturity. 🗸🗸
• When they are paid, because their nominal values remain constant, the purchasing power of the nominal values decreases as prices increase (that is, their real value decreases). 🗸🗸

Assets with Flexible Market Values

• The holders of shares and fixed property usually gain by price increases because the nominal values of these assets tend to increase at least proportionately to the rate of inflation (that is, their market values are flexible). 🗸🗸
• Often the prices of these assets increase more rapidly than increases in the general price level.🗸🗸
• In this case, inflation creates wealth to the advantage of those holding such assets. 🗸🗸
• South Africa has a progressive personal income tax system. 🗸🗸
• This means that marginal and average tax rates increase in harmony with the income level. 🗸🗸
• The higher level an individual’s income, the greater the percentage of income he or she has to pay tax. 🗸🗸
• With inflation, taxpayers’ nominal income (wages and salaries) rise even when their real income remain unchanged. 🗸🗸

Taxes are levied on nominal income and not on real income.

• Therefore if the income tax schedule remains unchanged inflation increases the average rate of personal income tax. 🗸🗸
• Individuals will have to pay higher taxes even if they are actually no better off than before. 🗸🗸
• This phenomenon known as bracket creep, lads to a redistribution of income from taxpayers to the government. 🗸🗸
• Bracket deep results from a combination of inflation and progressive income tax. 🗸🗸
• It has the same effect as an increase in the tax rate. 🗸🗸

Industrial Peace

• Wage bargaining is often accompanied by strikes and mass action. 🗸🗸
• These actions can sometimes spill over into violence, which affects society at large. 🗸🗸
• In extreme situations in the presence of exceptionally high inflation together with a government that is determined not to yield to wage increase demands (which can push inflation to even higher levels), widespread civil unrest follows. 🗸🗸

Inflation has a negative effect on economic growth

• Inflation leads to increased uncertainty in the economy. 🗸🗸
• This uncertainty discourages savings and investments especially in the long term. 🗸🗸
• Which are necessary for economic growth –result reduced economic growth. 🗸🗸

Inflation affects the real money value and savings

• Because inflation reduces the real value of money, it affects the real value of money saved in particular. 🗸🗸
• This means that inflation, the rand buys fewer goods and services than before. 🗸🗸
• It also means that the real money value saved is worth less at the end of the savings period than when the money was saved. 🗸🗸
• e.g. if a consumer receives 5 % interest on his/her savings account while the inflation rate is 8%, then the real rate of interest on the consumer’s savings is -3%.🗸🗸

Inflation has an adverse effect on a country’s balance of payments (BOP).

• If a country’s rate of inflation is higher than that of its trading partners the prices of exported goods increase while the prices of imported goods decrease. 🗸🗸
• This leads to loss of competitiveness in the export market, which in turn leads to decreased exports. 🗸🗸

This has a negative effect on the country’s balance of payments (BOP).

• The loss of export competiveness can also increase unemployment inflation affects the redistribution of income in a country. 🗸🗸

The effects of inflation are uneven.

• While it does not clearly benefit anyone and certainly harms most, it also harms some less than others. 🗸🗸
• Inflation also tends to redistribute income from low-income groups to higher income groups. 🗸🗸
• This is because people in the low income groups do not have assets than can rise in value faster than the rate of inflation to help them overcome the effects of inflation. 🗸🗸
• Powerful groups such as trade unions large companies and the wealthy people, are able to increase their share of national income at the expense of disadvantaged people such as pensioners the unemployed and the welfare recipients. 🗸🗸

Inflation has social and political costs

• When inflation continually causes rising prices it makes people unhappy and can disturb relations between employers and the employees and between customers and traders or service providers. 🗸🗸
• People in lower-income brackets feel severe effects of increases in the price of essential items such as bread, maize meal rental and transport costs. 🗸🗸
• This can lead to social unrest and political unrest. 🗸🗸

Inflation feeds on itself and causes further inflation

• This is called the inflation spiral. 🗸🗸 e.g. higher wage demands cause producers to increase their prices to maintain their profits.
• This happens again and again pushing prices further every time. 🗸🗸
• If the government does not keep this wage price spiral in check, inflation may get out of control and become hyperinflation. 🗸🗸 [Max 26]

ADDITIONAL PART Debate the merits (benefits) of administered prices by the government

• These are prices regulated by the government e.g. home owner’s costs on water/household fuel (paraffin and electricity) medical care (public hospitals) communication (telephone calls, telephone rentals and installations/postage cell communications /transport (petrol). 🗸🗸
• Most of the administered prices are adjusted once a year which brings price stability. 🗸🗸
• Regulated prices are restricted as to the extent to which prices may vary, depending on the government’s objectives. 🗸🗸
• Administered prices provide additional revenue to national treasury. 🗸🗸
• It appears that some of these prices remain extremely robust over the short term. 🗸🗸 [Accept any other relevant response] [Max 10]
• If inflation is not controlled by the proper and effective instruments, it can have challenging problems to the economy in general. 🗸🗸

INTRODUCTION COST PUSH Inflation is a sustained and significant increase in general price level over a period of time and a simultaneous decrease in the purchasing power of money. Accept any other relevant introduction. 🗸🗸 [Max 2] 

BODY: MAIN PART Causes of cost-push inflation

Increase in Wages:

• In South Africa, increase in wages constitute more than 50% of Gross Value Added at basic prices 🗸🗸
• If the increase in wages is not accompanied by an increase in production, the cost of production will rise 🗸🗸
• Producers will increase the prices of their products to offset the high cost of production strikes and stay-aways / labour union activities 🗸🗸

Key inputs/ increase in prices of imported capital goods

• When the prices of key inputs that are imported increase, domestic cost of production 🗸🗸
• increases especially in the manufacturing sector 🗸🗸
• Supply shocks e.g. sudden increase of oil causes a knock-off effect 🗸🗸

Exchange rate depreciation

• A decrease in the value of the rand will result in an increase in prices of imports 🗸🗸

Profit margins

• When firms increase profit margins, the prices that consumers pay also increase 🗸🗸
• Sometimes firms use their market power to push up prices 🗸🗸

Productivity

• Less productive factors of production will lead to increased cost per unit 🗸🗸
• Strikes and stay-aways often reduce production output and can result in price increases 🗸🗸

Natural disasters

• Natural disasters such as drought, flood and global warming can impact on the cost of production 🗸🗸
• This is often the case in relation to food prices 🗸🗸
• An increase in interest rates results businesses paying more money for capital loaned firms recover these costs by increasing the prices of their products 🗸🗸

Increase in taxation

• Increase in direct tax like company income tax may lead to businesses increasing their prices to offset the extra burden 🗸🗸
• Increase in indirect tax such as custom duty will lead to increase in costs of supplying a particular product, therefore the price will increase 🗸🗸
• Administered prices increase e.g. fuel prices
• Shoplifting and losses caused by employees are added to the prices of products 🗸🗸 [Accept any other relevant fact. Maximum 8 marks for headings] [Max. 26]

DEMAND PULL INFLATION Total spending on domestic goods and services in the economy consists of the spending by households, firms, the government and the foreign sector.

• Total spending = C + I + G + (X-M). 🗸🗸

Causes of demand inflation Increase in consumption [C] – consumers expenditure will increase mainly for three reasons:

• a. If consumers save less & spend more🗸🗸
• b. Decrease in personal income tax. 🗸🗸
• c. A greater availability of consumer credit, because of decrease in interest rate. 🗸🗸

Investment [I] –When business invest this increase demand for labour, cement, sand and bricks. 🗸🗸

• Supply cannot keep up with the increase in demand and this will increase prices. 🗸🗸
• Lower interest rates may result in an improvement in the sentiment and profit expectations of businesses. 🗸🗸
• Businesses invest more and this may lead to an increase in the demand of goods and services that are part of the investment (for example, a new building requires cement bricks and labour).🗸🗸
• If aggregate demand increases at a faster rate than aggregate supply, price increases will follow.🗸🗸

Government Spending [G] – Three main reasons.

• a. New capital projects🗸🗸
• b. Consumption expenditure on education, health, and protection. 🗸🗸
• c. Social expenditure on public work programme to create jobs and increase in social allowances. 🗸🗸

Export earnings [X]

• a. When economy of trading country improve. 🗸🗸
• b. When global economy expands. 🗸🗸

Access to credit

• There is greater availability of consumer credit (by means of credit cards) of the availability of cheaper credit as a result of decreases in lending rates. As new credit is extended the credit multiplier kicks in and more credit is created. 🗸🗸

Consumption spending

• Most governments will at times increase expenditures on education, health, protection and safety (for example, military equipment such as bomber jets and submarines). 🗸🗸

Social spending

• Governments sometimes feel they have to do something substantive about unemployment and poverty. 🗸🗸
• They borrow money and spend it on public works programmes or raise the level of social grants year after year at a higher rate than the inflation rate. 🗸🗸
• Such expenditures invariably lead to inflation because they add to aggregate demand without adding anything to aggregate supply. 🗸🗸

Commodities demand

• The world’s demand for commodities expands and contracts like business cycles do. During an expansionary period, foreign demand increases and this leads to greater volumes of exports. The income earned from these exports adds to aggregate demand and prices increase. 🗸🗸

BODY: ADDITIONAL PART YES / NO

• Inflation targeting is when a particular percentage is set as an acceptable level for an increase in general price levels 🗸🗸
• The SARB's inflation target is a range of 3% and 6% 🗸🗸
• The aim of inflation targeting policy is to achieve and maintain price stability 🗸🗸
• The implementation of the inflation target is easy to understand – expressed in numbers which makes it very clear and transparent 🗸🗸
• It reduces uncertainty and promotes sound planning in the public and private sectors 🗸🗸
• It provides an explicit yardstick that serves to discipline monetary policy and improves the accountability of the central banks 🗸🗸
• The SARB make use of monetary policy, specifically the repo rate to keep the inflation within the target range 🗸🗸
• The government make use of fiscal policy regarding public sector revenue and expenditure 🗸🗸

Positive effects

• Where demand is higher than supply an increase in interest rates help to bring the demand down 🗸🗸
• The policy can helps businesses to make economic plans without worrying about the effects of high inflation 🗸🗸
• South Africa's price level has been fairly stable since the introduction of the inflation targeting policy in 2000 🗸🗸

Negative effects

• Inflation targeting can cause a reduction in economic growth 🗸🗸
• This is because the raising of interest rates, result in a decrease in total spending which is needed for production to increase 🗸🗸
• Decreased economic growth can increase unemployment 🗸🗸
• South Africa has been experiencing an increase in unemployment since the implementation of the policy in 2000 🗸🗸
• Inflation targeting is difficult to implement when the cause of inflation is supply shocks 🗸🗸 [Max. 10]
• A summary of what has been discussed without repeating facts already mentioned in the body. 🗸🗸
• An opinion or valued judgement on the facts discussed. 🗸🗸
• Additional support information to strengthen the discussion. 🗸🗸
• A contradictory viewpoint with motivation. 🗸🗸
• Recommendations. 🗸🗸
• E.g. Inflation can be a threat to the normal functioning of the economy; therefore, measures like monetary and fiscal are vital to keep the phenomenon under control. 🗸🗸 
• This is the activities of people travelling to and staying in places outside their usual environment for a period not longer than one consecutive year for leisure, business and other purposes and not related to a remunerative activity from within the place visited 🗸🗸 [Max 2]

BODY - MAIN PART Gross domestic product (GDP)

• Tourism impacts mostly on the services industry than on agriculture or manufacturing although there are upstream effects when agriculture provides foodstuffs to restaurants and manufacturing provides vehicles for transport 🗸🗸

Direct contribution on GDP

• Statistics South Africa (SSA) shows that in 2020 inbound tourists contributed R69 billion and domestic tourists R billion, amounting to R billion - about % of South Africa's GDP 🗸🗸

Indirect contribution on GDP

• If the indirect contribution is added, tourism add about % to GDP 🗸🗸
• The WTTC estimated that tourism contributed % to the GDP of the world economy in 2020🗸🗸
• In developing economies the service sector is responsible for around % of GDP, while it is responsible for more than % of GDP in developed economies 🗸🗸
• South Africa is similar to that of developed economies and services contributed more than % of GDP in 2020. 🗸🗸
• Tourism has a major effect on employment and this amounted to million workers in 2020🗸🗸
• Tourism is the world’s largest generator of jobs 🗸🗸
• Tourism is labour intensive 🗸🗸
• More jobs can be created with every unit of capital invested in tourism than elsewhere
• Tourism employs many skills 🗸🗸
• It ranges from accountants and hairdressers to tour guides and trackers, 🗸🗸
• the tourism industry draws upon numerous skills 🗸🗸
• Tourism can provide immediate employment 🗸🗸
• If one quarter of tourists’ accommodation establishment in South Africa starts to offer live entertainment to quests, thousands of entertainers could be employed within days 🗸🗸
• Tourism provides entrepreneurship opportunities 🗸🗸
• The tourism industry accommodates informal sector enterprises, from craft and fruit vendors to pavement vendors, chair rentals 🗸🗸
• Tourism is widely recognized as one of the fastest and more effective redistribution mechanisms in development 🗸🗸
• It brings development to the poor in rural areas 🗸🗸
• Tourism provides an alternative to urbanisation, permitting women and youth to continue a rural family lifestyle while giving them business opportunities 🗸🗸
• E.g. to start and operate small-scale tourism businesses around community asserts (forests, parks and rivers) 🗸🗸

Externalities

• The rapidly expanding tourism industry could have both positive and negative impacts that extend well into the future 🗸🗸
• While tourism attracts large amount of revenue, it can also cause undue environmental damage that can harm the very foundation on which it depends 🗸🗸
• All other economic resources, tourism uses resources and produces wastes and also creates environmental costs (pollution) and benefits in the process 🗸🗸
• Rapid growth in tourism aiming at short-term benefits usually results in more negative effects and these includes the degeneration of traditions and cultural values and environmental damage to sites and setting 🗸🗸

Environment Tourism activities create environmental stress:

• Permanent environmental restructuring which includes major infrastructure 🗸🗸
• Waste product generation such as biological and non-biological waste that damages fish production 🗸🗸
• Direct environmental stress caused by tourist activities, e.g. the destruction of vegetation and dunes 🗸🗸
• Effects on population dynamics such as migration and increased urban densities 🗸🗸
• Transport infrastructure, e.g. roads, airports 🗸🗸
• Communication and infrastructure including telephone lines, electronic signal stations and radio, TVs’ 🗸🗸
• Energy infrastructure such electricity and liquid fuel 🗸🗸
• Basic service infrastructure such as clean water and sewerage systems 🗸🗸 [Max. 26]

ADDITIONAL PART How can Indigenous Knowledge Systems be used to promote tourism in South Africa?

• More cultural villages can be improved to facilitate and promote tourism e.g. Shangana in Mpumalanga, Basotho in the Free State and Simunye Zulu Lodge in Kwazulu-Natal. 🗸🗸
• Where guides explain and demonstrate storytelling and indigenous knowledge practices. 🗸🗸
• Advertising campaigns domestically and internationally by travel agencies, hotels and B & B, lodges and SA Tourism can focus on promoting these heritage sites in brochures and fliers, social media. 🗸🗸
• These actions will make tourists more aware of these attractions 🗸🗸
• Encourage tourists to experience different cultures and townships - experience life at home with a household and eat at a shebeen or township restaurant 🗸🗸
• World Heritage Sites of South Africa can be promoted for their cultural significance e.g. the Fossil Hominid Sites of Sterkfontein, Mapungubwe Cultural Landscape, Richtersveld Cultural and Botanical Landscape, Vredefort Dome and Robben Island 🗸🗸
• Environmental World Heritage Sites of South Africa selected for their natural importance namely the Cape Floral Region Protected Areas, Isimangaliso Wetlands Park as well as uKhahlamba/Drakensberg Park which has been selected for its mixed significance 🗸🗸
• Arts and culture festivals e.g. the National Arts Festival, the Hermanus Festival, Awesome Africa Music Festival and Macufe African Cultural Festival should more widely be advertised to encourage tourists to attend 🗸🗸
• According to the World Health Organisation, a large majority of the African population make use of traditional medicines for health, social-cultural and economic reasons and forms part of the unique experience tourists experience when visiting local villages 🗸🗸
• In South Africa tourists are made more aware of the important role traditional medicine plays in poverty reduction and employment creation 🗸🗸
• Relaxation of restrictive tourist visa laws to facilitate easier entry into South Africa 🗸🗸 [Accept any other relevant answers] [Max. 10]
• South Africa attracted over million tourists in 2020 /For every 8.1 additional tourist to South Africa, one new job is created/one per cent increase in tourism adds R million annually to the SA economy. 🗸🗸 [Accept any other relevant higher order conclusion] [Max. 2]
• Tourism is the activities of people travelling to and staying in places outside their usual environment for no more than one consecutive year for leisure, business or other purposes PP 🗸🗸  [Accept any other correct relevant response] [Max 2]

MAIN PART Business sector

• Tourism stimulates business in areas such as accommodation and entertainment 🗸🗸
• The construction industry, in private-public partnership with the government to provide the infrastructure, manufacturing sector and recreation sector all benefits from increased demand due to tourism 🗸🗸
• The previously disadvantaged communities get entrepreneurial opportunities through the black economic empowerment schemes 🗸🗸
• A large number of people get business opportunities in the informal sector e.g. selling of artefacts 🗸🗸
• Local retailers may have an increase in sales (and profits) because of increased demand from tourists 🗸🗸
• Private businesses and government work in partnership to provide the infrastructure needed for tourism 🗸🗸
• This increases the market share of and income of the these businesses 🗸🗸
• Allow existing businesses to improve the quality and variety of their products PP 🗸🗸
• Allow natural monopolies e.g. Table Mountain Cableway to achieve abnormal profits PP 🗸🗸
• The public sector also provides a range of financial incentives for private sector tourism investment (grants, subsidies, loans, tax rebates) PP 🗸🗸 [Max 10]

Infrastructure development

• Adequate and well-maintained infrastructure is essential for tourist destinations PP. 🗸🗸
• Locals share this infrastructure with tourists 🗸🗸
• Government often prioritises economic infrastructure such as ports and beaches 🗸🗸
• In addition to physical and basic infrastructure, social infrastructure is also important for the growth of tourism🗸🗸
• Most of the SDIs and development corridors also have tourism as an important focus PP 🗸🗸 [Max 8]
• Members of households earn income from the tourism sector as tour operators, travel agents etc. 🗸🗸
• Many households are indirectly involved in tourism as employees e.g. in hotels, transport sector. 🗸🗸
• Entrepreneurs from households that operate as curio producers or musicians can earn income from tourism . 🗸🗸
• A large number of households acquire skills in the tourism industry. 🗸🗸
• School curriculum and learnership offer opportunities to acquire these skills . 🗸🗸
• Encourages rural development because many tourist attractions are located in rural areas PP 🗸🗸 [Accept any other correct relevant response] [Max. 26]

ADDITIONAL PART Tourism can be successfully marketed in less popular destinations by:

• advertising the firms' attractions in a variety of media including social media and internet which may reach both local and international potential tourists. 🗸🗸
• focusing on a clear message that concentrates on the strength of the attraction/ uniqueness of the destination. 🗸🗸
• using the indigenous knowledge systems of that particular area where possible PP. 🗸🗸
• describing the service offered in the best possible way to catch the interest of the likely tourist PP E.g. the use of slogans. 🗸🗸
• charging a price that is competitive and money well spent for the service offered. 🗸🗸
• helping the tourist to view the entire service as value for money – deliver a worldclass visitor experience 🗸🗸
• highlighting other places of interest in the vicinity of the attraction as part of a package 🗸🗸
• focusing on proudly South African products/services / Sho’t Left campaign PP 🗸🗸
• help disadvantaged South Africans to benefit from tourist attractions in the less popular destinations PP 🗸🗸 [Accept any other correct relevant response] [Max. 10]

CONCLUSION A weaker exchange rate has been a major contributing factor to South Africa's tourism industry growth over many years. 🗸🗸 [Accept any correct relevant response] [Max 2]

INTRODUCTION Environmental sustainability can be defined as development that meets the need of the present without compromising the ability of future generations to meet their own needs. 🗸🗸

BODY: MAIN PART Public sector intervention Because it is difficult to enforce measures to ensure sustainability the government has to intervene. 🗸🗸

Environmental taxes Environmental taxes (green taxes) can be added to the cost of goods and services for the negative impact they have on the environment. 🗸🗸 The government uses the income generated through these taxes to protect the environment. 🗸🗸 Taxes can be imposed on petrol, paper, emission gases etc. 🗸🗸 In 2003 the government has legislated the use of biodegradable plastic bags which consumers had to pay for🗸🗸 The hope is that they will use fewer bags and ensure a litter free environment. 🗸🗸

Charging for dumping of waste A monthly fee as part of municipal accounts is charged for collection of waste, sewage and garbage. 🗸🗸 Households already pay for the collection of rubbish. 🗸🗸 The factory owner might clean up his waste if it cost him to dump it. 🗸🗸 Industries might also pay for emitting gases that can be harmful to people and the environment. 🗸🗸 Subsidies Subsidies can be awarded to businesses that are willing to reduce pollution and waste. 🗸🗸 Waste can also be reduced by using new techniques or equipment such as solar energy. 🗸🗸 Emission gases from factories can be reduced using new technology. 🗸🗸

Granting property rights Normally owners of properties tend to be more protective over their resources than users who are only interested in the profits the resources offer. 🗸🗸 For this reason the government might grant property rights over a specific area. 🗸🗸 Property rights empowers owners to negotiate contracts with businesses who wish to exploit the area’s resources. 🗸🗸

Marketable permits A government can decide on the maximum desired level of pollution in an area. 🗸🗸 It then distribute pollution rights (marketable permits) to factories within that area. 🗸🗸 This means that each factory can pollute to a certain limit. 🗸🗸 It means that marketable permits are licenses that polluters can buy or sell to meet the control levels set by government. 🗸🗸

Education Incorporating topics into the curriculum of school fosters awareness. 🗸🗸 The public is gradually been made aware of this rising problem. 🗸🗸 Plastic, bottles and cartons can be recycled or made biodegradable. 🗸🗸

Public sector control If the government’s intervention does not attain the desired results, then it has to intervene more directly by setting and enforcing limits. 🗸🗸

Environmental Impact Assessment In SA every projected construction, mining or similar development has to undergo an assessment by qualified environmental professionals. 🗸🗸 To prove that it will not cause unwarranted environmental damage and that the damage can be repaired after construction. 🗸🗸 The cost if built into the project. 🗸🗸

Command and Control Regulations that are set and enforce environmental limits or standards. 🗸🗸 Quantity: e.g. set the limit to the amount of fish to catch, or limit the season catching certain species of fish. 🗸🗸 Quality: e.g. drinking water quality is carefully monitored and controlled. 🗸🗸 Air quality in workplace is subject to minimum standards. 🗸🗸 Social effect: e.g. noxious fumes from factories, dumping of medical waste near settlements, and noise pollution. 🗸🗸

Voluntary agreements Agreements between government and businesses voluntarily to address negative environmental impacts of industries. 🗸🗸 Businesses voluntary agree to decrease the emissions of pollutants. 🗸🗸 Most prefer negotiations so that they can tailor their specific needs and include it into their planning🗸🗸 Agreements can be formal, which is legally binding contract or informal. 🗸🗸 [Max 26]

ADDITIONAL PART Government does not exercise effective control over the continuous dumping of waste because of a lack of coordination between departments. 🗸🗸 The fines imposed on industries that dump waste are too lenient and they continue polluting the environment. 🗸🗸

The minimum standards set for hazardous gas and fuel emissions are not enforced or adjusted. 🗸🗸 The recycling of waste materials are not widely encouraged and promoted and landfill sites are overflowing. 🗸🗸 Government has various laws that is not really effectively implemented. 🗸🗸 Poor service delivery also adds to the problem in certain areas. 🗸🗸 [Accept any other relevant answer] [Max 10]

CONCLUSION Each and every individual, business and government needs to stand together to save our planet. [Accept any other relevant conclusion] [Max 2] Discuss in detail the following problems and the international measures taken to ensure sustainable development (Environmental Sustainability)

INTRODUCTION Environment refers to the physical surroundings and physical conditions that affect people’s lives. 🗸🗸 The ever-increasing pressure on our environment originates from increasing population numbers and excessive consumption🗸🗸 Our air, land, and water are under constant assault from the ever-growing ravages of man-made pollution generated chiefly by industrialized societies. 🗸🗸 [Accept any appropriate introduction] [Max 2]

BODY-MAIN PART Conservation

• Conservation is necessary because human actions cause pollution and over-utilisation of  resources. 🗸🗸
• Conservation is a strategy aimed at achieving the sustainable use and management of natural resources. 🗸🗸
• Conservation seeks a creative continuity of the environment while ensuring that change is sympathetic to the quality of life for both present and future generations. 🗸🗸
• Certain aspects of conservation need to be taken into account.
• Firstly, there is an opportunity cost. 🗸🗸
• Secondly, externalities are often present. 🗸🗸
• Lastly, self-interest has a short term horizon – meaning that decisions cannot be left entirely to market forces. 🗸🗸
• Over utilization of resources causes a reduction in supply, increase in prices, contradiction of demand and a search for substitutes. 🗸🗸
• This necessitates conservation of both renewable and non-renewable resources. 🗸🗸
• Conservation has to be concerned with limiting what is harvested in order to maintain a stable stock at least at the minimum level. 🗸🗸
• Government can use permits and quotas as two possible direct control methods in order to maintain the stock of resources at the minimum level. 🗸🗸

Preservation

• Preservation involves any strategy undertaken to safeguard the environment, maintain its current condition and keep it as habitable as possible for people and animals. 🗸🗸
• Heritage sites, indigenous forests, specifies of animals etc. that have special cultural or environmental significance, are often targeted preservation. 🗸🗸
• Preservation is not likely to work as a private enterprise because the benefit to society is much bigger than the income of the producer. 🗸🗸
• It may be possible to use cost-benefit analysis to calculate the social benefits of preservation of the environment.
• The weaknesses in market solutions require the government to intervene in order to preserve environment assets. 🗸🗸
• Government could do any of the following:
• Buy or expropriate – Environmental assets are simply closed for human use. 🗸🗸
• Subsidise-A subsidy would increase net benefits to the owner and raise the property’s present value. 🗸🗸
• Controls – The government can compel the owner to apply control measures like restricting the quantities exploited or number of visitors allowed per day. 🗸🗸 [26 Max]

ADDITIONAL PART Stockholm Conference (1972)

• The Stockholm Conference was the first major large scale international meeting on the environment convened with the support of the United Nations. 🗸🗸
• The meeting agreed upon a declaration containing 26 principles concerning the environment and development, an action plan with 109 recommendations and a resolution. 🗸🗸
• The meeting directly impacted on the environmental policies of many countries. 🗸🗸

Rio de Janeiro Earth Summit (1992)

• This meeting acknowledged the importance of cooperation in addressing environmental concerns that threaten sustainability. 🗸🗸
• The conference helped to make countries around the world aware of the dangers of unsustainable development. 🗸🗸
• Unfortunately the principles outlined and accepted at the summit were not binding and subsequently many countries did not confirm to them. 🗸🗸

Rio + 5 (1997)

• This conference noted that globalization made some countries poorer – 🗸🗸
• In particular African countries and the least developed countries showed a low level of growth or even declined. 🗸🗸

Kyoto Protocol for Climate Change (1997)

• Countries committed themselves to reducing their total emissions of greenhouse by 5 %.🗸🗸
• Unfortunately, China was excluded from this agreement and the USA withdrew. 🗸🗸

World Summit on Sustainable Development (2002)

• The objective of this summit held in Johannesburg was to conserve natural resources in a world that is growing in population. 🗸🗸
• The meeting focused on issues like poverty eradication, water and sanitation, energy, health agriculture and biodiversity. 🗸🗸

COP 17 (2011)

• The main goal of the conference held in Durban was to establish a treaty to limit carbon emissions and plan strategies to keep global temperature rise to less than 2 degree Celsius in the 21st Century. 🗸🗸
• Although the framework for this treaty was established it was not finalised. 🗸🗸
• The solution to our environmental problems will depend on our ability to make sound economic decisions that take account of the natural environment and to change our individual behaviour and attitudes. 🗸🗸 [Accept any other relevant conclusion] [Max 2]

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The following article will guide you in choosing the best topic for your essay on economics. Here, you can find a variety of ideas for high school or college. The economic essay topics are divided into several categories that will help you with your research. And a pleasant bonus from our team! We have created a great guide on how to write an economics essay.

So, don’t miss your chance to write an outstanding economic paper! Check out our essay ideas, read our tips carefully, and be ready to receive your grade A!

• ⭐ Best Economic Topics
• 🤝 Socio-Economic
• 🗺️ International Economics
• 🛠️ Labor Economics
• 🌆 Urban Economics
• ⚽ Sports Economics
• 💉 Health Economics
• 💼 Business Economics
• 🏤 Globalization
• 🧮 Economic History
• 💫 How to Write?

⭐ 15 Best Economic Essay Topics

• 2008 Economic Crisis.
• Socio-economic policy.
• Economic systems – Singapore.
• Racial pay gap.
• Economic globalization.
• History of online trading.
• Child labor policies.
• The Economic Naturalist.
• Foundations of economic theory.
• Impact of unemployment.
• Universal Basic Income.
• The role of consumerism.
• Healthcare economics – Canada’s Medicare.
• Reasons for recession.
• Cryptocurrency & environmental issues.

✨ Excellent Economic Essay Topics

Has economics always been a subject of meticulous research? The question is quite controversial, right? There is no specific time when economics started its rapid progress. Generally, economics remains the topic of interest since the establishment of capitalism in the Western world.

Nowadays, the economy is the main engine that moves our world forward. The way we do business determines the geopolitical situation in the world. Moreover, it influences many other parts of our lives.

Economics studying is of utmost importance nowadays. It helps to gain a better understanding of processes that put everything in motion.

Economics is quite broad, so it has a great variety of subfields. And this is a fantastic opportunity for us to generate as many essay ideas as possible. Here, you will find great economic topics for your paper. As mentioned before, we have divided them into several sections to ease your selection process. There’s a wide selection of free college essays samples on economics in our database, too. So be sure to check that out.

🤝 Socio-Economic Essay Topics

• The economic impact of racial segregation in America in the 1950s.
• Designing a just socio-economic system.
• Socio-economic status of Hong Kong in modern-day China. Explain how the city of Hong Kong gained a special status in China. Why did it emerge as one of the most important cities in its economy? Comment on the significance of Hong Kong in the international economic arena.
• Economic growth in the United States in the post-World War 2 period.
• Mobile banking in Saudi Arabia: towards understanding the factors that affect the sector.
• The importance of Dior’s bar suit to the women’s fashion industry.
• Economic problems in the 1980’s Soviet Union. Talk about the significant problems with the economy the USSR had in the 1980s. What role did they play in its collapse?
• What socio-economic problems did segregation in South Africa cause?
• History of economic development in the UAE. Discuss the economic miracle in the UAE and Dubai. Explain how the government could turn the city of Dubai into one of the most famous tourist destinations. What strategies were applied?
• Gender inequality and socio-economic development .
• The problem of poverty in Venezuela.
• How the socio-economic and political position of women changed between 1880 and 1940.
• The economic impact of COVID-19 on global trade.

• How do the three main economic groups interact with each other? There are three critical economic groups: – Consumers – Producers – Government Analyze the interaction of these groups with each other.
• Extended essay: how the study of economic data helped our society to advance?
• Western industrialization socio-economic impacts.
• Inequality at the top: not all billionaires have the same powers. Analyze billionaires’ net worth, liquidity, political power, and wealth security. Explain why they have unequal social status. What factors determine the influence of billionaires?
• An analysis of systems that help us measure agricultural development in a country.
• Is social media a useful tool for brand promotion?
• The phenomenon of dualism in economic development.

🗺️ International Economics Essay Topics

• Globalization and its impact on international economic relations. Define the term globalization. What role does globalization play in international economic relations? Provide specific examples of globalization’s impact on the global political economy.
• The lack of justice for the cheap international labor market. Discuss the issue of cheap labor in various countries. Why do some workers often lack fundamental human rights while others abuse moral norms? Analyze the causes and effects of inequality in the workplace.
• Japan macroeconomics: problems and possible solutions.
• The issue of mercantilism in the history of Great Britain. Analyze the rise and development of mercantilism in the history of Great Britain. To solidify your ideas, provide persuasive arguments, and appropriate examples of mercantilism.
• Why does the problem of environmental protection remain unresolved among global economies?
• Nissan Motor company’s international business.
• International environmental concerns in economics: the case of China .
• The issue of international criminal justice in industry. Explain why international businesses often avoid criminal justice after wrongdoings. Select one case of unethical behavior of a company’s CEO or regular employee. Briefly introduce the problem. What were the causes and effects? How was the issue resolved? Express your own opinion regarding the lack of criminal justice in business.
• The economy of Singapore and its role in international trade.
• International microeconomics trade dispute case study: US-China dispute on the exportation of raw materials.
• The phenomenon of the “gig economy” and its impact on the global economy.
• The effect of population growth in the international economy.
• International economics in the context of globalization.

• How does Brexit affect the economy of the European Union? Analyze the immediate impact of Brexit on the EU’s economy. Predict future advantages and disadvantages of Brexit for both: Great Britain and the EU.
• South Africa: international agribusiness, trade, and financing.
• Historical essay: the economy of the Dutch East India company.
• The issue of Mozambique’s economy and possible solutions. Investigate the issue of extreme poverty in Mozambique. What are some possible solutions to the problem of poverty? Base your suggestions on the country’s cultural, historical, and geographical aspects.
• Imbalances in the global economy. Discuss the imbalances between trading countries on the scale of the global economy. What solutions would you suggest to deal with this issue?
• How will global economies adapt to China’s growing power?
• Etihad Airways company managerial economics.

🛠️ Labor Economics Essay Topics

• Ford Motor company’s labor economics.
• Labor economics: child labor.
• The UPS firm perspective: the labor market.
• Gender inequality of wage rate in modern business. Research how and why gender inequality is still an issue in the modern world of economics. What are some ways to deal with the problem? Present your ideas accurately and effectively. Provide solid arguments and appropriate examples to prove your position.
• What are the best ways to increase labor productivity in business?
• Labor unions adverse effects on economics.
• The decrease of the labor force in modern industries. Talk about the rising rates of robotization in the majority of industries. How will it affect the traditional labor force? Comment on the problem of unemployment caused by labor automatization.
• Violations of labor rights of workers.
• Modern labor essay: how can an entrepreneur guarantee the minimum wage to their workers?
• How can labor geography help develop a special economic zone? Talk about labor geography and its effects on developing an exclusive economic zone. How does the geopolitical location of a particular country influence its level of economic development?
• Entrepreneurship in the organic cosmetics sphere.
• Gender-oriented labor trade unions. A case study. Discuss the gender-oriented trade unions and analyze their impact on our society.
• Child labor in the Turkish cotton industry.

• The connection between economic growth and demography. Analyze the connection between economic growth and its demographic context. Investigate both sides: – The issue of overpopulation – The problem of low birth rate. From an economic perspective, what problem is more dangerous?
• The issue of sex discrimination in the workplace.
• The effects of Landrum-Griffin Labor Act. Explore the labor Act of Landrum-Griffin that was passed in the US Congress in 1959. Discuss its implications and consequences. Discuss its implications and consequences.

🌆 Urban Economics Essay Topics

• Cities and their role in aggregate economics.
• Urbanization in Hong Kong and its effects on citizens.
• The urban planning of the city of New York: a critical analysis. Analyze the urban history of NY. How has the city been developing? Discuss revolutionary solutions to the past and problems of modern times.
• The impact of a city’s design on the local traffic.
• Dubai’s spatial planning: creative solutions for building a city in the desert.
• Globalization, urban political economy, and economic restructuring.
• How do urban areas affect local wildlife? Comment on how modern production technologies in urban areas impact the natural diversity of wildlife. What impact does the rapid economic progress have on the environment? Suggest possible solutions.
• Urban sociology: does the city make us better people?
• Why should people be more careful about investing in real estate? Discuss the issues of overinvestment into real estate. Consider the economic crisis of 2008 as an example.
• How can regional authorities help improve a city?
• Urban life and its effects on education.
• The economic development of a city’s metropolitan area: challenges and solutions.
• Main factors for the emergence of cities in the Middle Ages.
• The ethics of relocation: is it justified? Talk about the case of relocating locals when building projects of great magnitude. To what extent can it be justified? Mention its economic and ethical side.
• The difficulties behind the construction of “green” buildings. Discuss the relatively new phenomenon of environmentally friendly buildings. Analyze both sides: the pros and cons. What obstacles lie behind the “green” building? What opportunities do the “green” buildings offer? Elaborate on your ideas by providing clear arguments or counterarguments.
• What factors play a critical role in the success of retail productivity in cities?

⚽ Sports Economics Essay Topics

• Do teams with higher budgets perform better on the field?
• Corruption in European football leagues: a critical analysis. Investigate the corruption issue in the European football leagues. State reasons and solutions for the problem.
• The managerial catastrophe of Arsenal F.C.

• The NextG sports company’s communication planning.
• Roger D. Blair’s Sports Economics literary review. Write a literary analysis of Sports Economics by Roger D. Blair. Discuss his opinion on the economy of sports. Do you agree or disagree with his position? Provide compelling supportive arguments or strong counterarguments.
• How significant is the impact factor of a local team on a city’s economy?
• Kinsmen Sports Centre: marketing metrics innovation.
• What role does statistical data play in sports? Analyze the part of economic statistical data in different sports organizations. How can statistics help to develop an effective financing plan? Comment on the impact of financing on the performance of a sports club.
• Sports and energy drinks marketing analysis.
• Is there a connection between the lack of money and any contemporary issues in a sports team?
• Performance-enhancing drugs in sports.
• The business of FIFA: a financial analysis. Investigate the finances of FIFA. What economic factors make them so influential in the modern world of football?
• The global sports retail industry.
• The Olympics: logistics and economy. Discuss the logistics behind the Olympics Games event. How the Olympic Games impact the economy of the host country?

💉 Health Economics Essay Topics

• Is bioprinting the new future of medicine? Analyze the new market of organ printing and discuss its challenges. Investigate bioprinting from an economic perspective. Will the outputs cover the inputs? How will bioprinting impact the financial aspect of the health care sector?
• Cost-effectiveness of pharmaceutical products in the United States. Comment on the immense cost-effectiveness of pharmaceuticals. What do you think is the price of pharmaceutical products reasonable? Is it ethical to set extremely high prices on the medicals?
• An economic evaluation of the antibiotics market.
• Health economics-SIC and NAICS.
• The financial side of cancer treatment: is it too expensive? Analyze the market for cancer treatment programs in various countries. Explore its costs and complications. What are some possible ways to reduce the price of cancer treatment and make it more affordable?
• The issue of fast food consumption: a multibillion-dollar market . Fast food has always been one of the notable causes of obesity, diabetes, and other illnesses. Investigate the economic aspect of the issue. Are high profits from fast food production worth peoples’ health conditions?
• History and evolution of healthcare economics.

• The financial management of a hospital: a case study.
• The issue of public healthcare in the USA. Write about the long-standing issue of medical sector operation in the USA. Analyze its history, financial, and social aspects.
• Demand in healthcare economics.
• What are the economic outcomes of a global pandemic? Taking the COVID-19 outbreak as an example, conduct research on the effects of a pandemic on the economy. How does it affect local economies? What impact does the quarantine have on the international economy? Provide appropriate examples to support your ideas.

💼 Business Economics Essay Topics

• When does an advertising campaign become unnecessary?
• Sustainable development of a nation’s economic stability. Discuss how a country can create a sustainable economy. Provide bright examples to solidify your position.
• How can a small business compete with monopolies?
• What are the limitations of the Lewis Model?
• The phenomenon of inflation: inevitable liability or a land of opportunity for our economies? Explore the process of inflation in modern economies. Does it only have adverse effects on the countries’ economies? Are there any advantages of inflation? Analyze it from a positive perspective.
• Economics, business, and sugar in the UK.
• The shadow economy of the finance sector. Dive into the backstage of the finance sector and research various “grey” areas where business can be done.
• Chinese and Japanese business systems comparison.
• Oil demand and its changes in the XXI century: a critical analysis. Analyze the oil sector and write about its fluctuation in the XXI century. How did the changes in oil demand affect the global economy?
• The social and economic impact of mass emigration.

🌠 40 More Good Economic Essay Topics

Scrolled through our ideas, but can’t find a suitable topic for yourself? No worries! We have more issues to share with you.

So, don’t stress out. Take a look at our list of economical essay topics. Here are 40 more ideas focusing on globalization and the history of economics.

🏤 Economic Globalization Essay Topics

• The impact of globalization on the tourist industry in the Caribbean . Analyze both: the positive and negative effects of globalization on the Caribbean. To make your paper well-structured, explore two advantages and two disadvantages. Don’t forget to improve your essay with strong evidence and appropriate examples!
• Toyota Motor Corporation: impacts of globalization.
• What are the effects of globalization on developing countries? To what extent do developing countries profit from globalization? Research the subject by comparing various examples.
• Defining globalization and its effects on current trade.
• Economic growth as a result of globalization: proper financial strategies. How can a country successfully achieve prosperity with globalization? Discuss proper economic strategies.
• The socio-political significance of the IT industry’s globalization.
• Human trafficking in developing nations as a result of globalization.

• Globalization and criminal justice policy.
• What are the advantages and disadvantages of globalization?
• Globalization challenges and countermeasures.
• The effect of globalization on worldwide trade and employment rates.
• Economic integration within the European Union: a critical analysis. Talk about the history of economic integration within the EU. What are the negative and positive outcomes of economic integration?
• Globalization and food in Japan.
• Does globalization bring negative effects to cultural heritage and identity?
• The Industrial Revolution as the first step towards globalization. Focus on the Industrial Revolution in Europe. Discuss its precursors and consequences. Why is the revolution considered to be a starting point of globalization? Provide specific examples of globalization processes that occurred in the economic sector after the Industrial revolution.
• Globalization 2.0 an analysis of a book by David Rieff.
• Globalization effects on fundamentalism growth.
• Does direct investment by foreign businesses come with strings attached? Dive into the shady area of globalization and discuss how to direct foreign investment can bring problems of geopolitical scale.
• Effects of globalization on sexuality.
• Alibaba’s globalization strategy: an economic analysis.

🧮 Economic History Essay Topics

• The rapid economic growth of Europe during the Age of Discovery. Analyze the factors that brought economic growth to Europe during the Age of Discovery. What factors contributed to the dynamic economic progress of that time?
• Brazil’s economic history.
• History of capitalism: from the Renaissance to the United States of America. Discuss the origins of capitalism and its centuries-long path towards XXth century America. How the establishment of capitalism impacted the economy of the USA?
• Max Weber: economic history, the theory of bureaucracy, and politics as a vocation.
• 2008 Economic Crisis: origins and fallout. Talk about the 2008 Financial Crisis. Discuss its causes and outcomes. What should have been done differently to avoid the global crisis? Comment on the economic strategies countries used to recover from it.
• The economic marvel of Communist China: from rags to riches.
• What made world economic growth of the Renaissance possible?

• The economic history of Canada: how did the settlers facilitate economic growth?
• What did the major powers of the XIXth century base their economies on?
• The Rothschilds: political and financial role in the Industrial Revolution. Research the dynasty of Rothschilds and how they came to power. What was their role in Europe’s Industrial Revolution?
• The link between the “oil curse” and the economic history of Latin America.
• Roman Empire’s monetary policy: a socio-economic analysis.
• How did the demand for different goods change their value in the 2000s years? Analyze the demand for goods in the 2000s years and their change in value. Why do these fluctuations in demand for products and services occur?
• The history of economic thought.
• Soviet Union’s economic timeline: from the new Economic Policy to Reformation. Discuss the economic issues of the Soviet Union from the historical perspective. Why did the Soviet Union collapse? What improvements in the financial sector should have been done?
• History of France economics over the past 20 years.
• The history of economic analysis.
• The concept of serfdom and slavery as the main economic engine of the past. Dive into the idea of feudalism and serfdom. Discuss its social and economic aspects.
• The World Bank’s structure, history, activities.
• The history of Islamic banking: concepts and ideas.

💫 How to Write an Economics Essay?

Generally, essay writing on economics has the same structure as any other essay. However, there are some distinctive features of economic papers. Thus, it is essential to figure them out from the very beginning of your work.

You might be wondering what those aspects of the economic paper are. Well, we have an answer.

Below, you will find a detailed plan that explains the fundamental concepts of the essay writing process. So, don’t hesitate to use our tips! They are indeed helpful.

Pick a topic and dissect it. Picking the right topic is the very basis of writing a successful essay. Think of something that you will be interested in and make sure you understand the issue clearly. Also, don’t forget to check our ultimate economics essay topics and samples list!

Research it. After selecting the right idea from our economical essay topics, research your subject thoroughly. Try to find every fascinating and intriguing detail about it. Remember that you can always ask your fellow students, friends, or a teacher for help.

Come up with a thesis statement. A thesis statement is an essential element of your essay. It will determine your focus and guide the readers throughout your paper. Make your thesis secure and try to catch the reader’s attention using context and word choice.

Outline your essay. Never underestimate the power of a well-structured outline! Creating an essay outline can significantly help you to determine your general plan. Evaluate which economic framework you will be using to address the issue. State the main points of your thesis and antithesis. Make sure that they answer the central question of your work.

Write your introduction. First and foremost, a practical introduction should capture the readers’ attention and state the essay’s key topic. So, put enough effort to develop an outstanding introduction. It will create the first impression of your paper.

Moreover, an introduction should include a thesis statement. As we have mentioned above, a thesis plays a crucial role. Thus, make sure it is clearly stated.

Another significant feature of the introduction is its coherence with the body of your essay. Consequently, the introductory paragraph’s last statement has to present the subject of the next section, generically. Also, keep in mind that no more than three key points can be discussed in a paper, even if it is an extended essay.

Thoroughly work on the body paragraphs. Usually, the body of the essay contains several paragraphs. The number of these paragraphs will depend on the nature of your question. Be sure to create one section for every critical point that you make. This will make your paper properly-structured, and the reader will quickly get your ideas. For your convenience, we created a plan to develop your ideas in each paragraph, So, use it and make your writing process easier!

• Argument. Present your argument in the topic sentence of the paragraph in a way that directly answers the question. A hint: the most effective way to introduce the critical point is to place the topic sentence at the beginning of the paragraph. This will help the readers to concentrate their attention on a specific idea.
• Comment and discussion. Explain the meaning of your argument and provide an economic analysis. Present clear evidence and persuasive arguments to solidify your position.
• Connection. Link your comments with the vital point of the paragraph. Demonstrate the coherence of your evidence with the point.
• Diagrams, tables, charts. If necessary, provide the reader with visual aids. Sometimes, an appropriate diagram or a suitable chart can say more than words. Besides, your paper will look more professional if you use any kind of visual aids.

Conclude your essay. In your conclusion, summarize and synthesize your work by restating your thesis. Also, it is crucial to strengthen it by mentioning the practical value of your findings. Remember to make your essay readable by choosing appropriate wording and avoiding too complex grammar constructions.

Thank you for visiting our page! Did you enjoy our article and learned something new? We are glad to help you. Don’t forget to leave a comment and share the article with others!

🔗 References

• High School Economics Topics: Econlib, The Library of Economics and Liberty
• Guide to Writing an Economics Essay: The Economics Tutor
• How to Write the Introduction of Your Development Economics Paper: David Evans, Center For Global Development
• Senior Essay: Department of Economics, Yale University
• Developing A Thesis: Maxine Rodburg and The Tutors of the Writing Center at Harvard University
• Academic Essay Writing, Some Guidelines: Department of Economics, Carleton University
• The Writing Process: Writing Centre Resource Guide, LibGuides at Dalhousie University
• Research Papers: KU Writing Center, the University of Kansas
• Unpacking the Topic: University of Southern Queensland
• Economic Issues: PIIE, Peterson Institute for International Economics
• Areas of Research: EPI, Economic Policy Institute
• Top 100 Economics Blogs Of 2023: Prateek Agarwal, Intelligent Economist
• Current Environmental Economic Topics, Environmental Economics: US EPA, United States Environmental Protection Agency
• Hot Topics in the U.S. Economy: The Balance
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How to Write a Good Economics Essay

Last Updated: July 16, 2024 References

This article was co-authored by Emily Listmann, MA . Emily Listmann is a Private Tutor and Life Coach in Santa Cruz, California. In 2018, she founded Mindful & Well, a natural healing and wellness coaching service. She has worked as a Social Studies Teacher, Curriculum Coordinator, and an SAT Prep Teacher. She received her MA in Education from the Stanford Graduate School of Education in 2014. Emily also received her Wellness Coach Certificate from Cornell University and completed the Mindfulness Training by Mindful Schools. This article has been viewed 129,436 times.

A good economics essay requires a clear argument that is well-supported by appropriately referenced evidence. Research your topic thoroughly and then carefully plan out your essay. A good structure is essential, as is sticking closely to the main essay question. Be sure to proofread your essay and try to write in formal and precise prose.

Preparing to Write Your Essay

• For example a question such as “Discuss the macroeconomic consequences of rising house prices, alongside falling interest rates” could be divided into 2 parts: 1 part could be on the effects of rising prices, and 1 on the effects of falling interest rates.
• In this example you could begin by discussing each separately and then bringing the 2 together and analysing how they influence each other.
• Be sure to keep the question at the forefront of your mind and don’t veer off topic. [1] X Research source

• Be sure that you understand all the key terms that you are being asked about.
• Try to keep your reading focussed closely to the essay question.
• Don’t forget to look at any lecture or class notes you have made.
• 3 Come up with a thesis statement . A thesis statement is the main argument you will make in your essay. It should be 1-2 sentences long and respond to the essential question that’s being asked. The thesis will help you structure the body of your essay, and each point you make should relate back to the thesis.

• Once you have put together a list of key points, then try to add in some more detail that brings in elements from your research.
• When you come to write out your essay, you can develop a paragraph based on each point.

• All of the evidence and explanation will be in the main body of the essay.
• Order the key points in the body of your essay in such a way that they flow logically.
• If you are writing a longer essay, you can break the main body into different sections. [2] X Research source
• If you have a word limit, be sure to take this into account when you are planning.
• Allocate yourself a rough number of words per section.
• The introduction and conclusion can be just a paragraph each.

Writing the Essay

• What your essay is about.
• What material you will cover in the essay.
• What your argument is. [3] X Research source

• Having this stated clearly at the start can help you to stay focussed on the question as you work your way through the essay.
• Try writing out this one or two sentence statement and sticking it up in front of you as you write, so it’s stays at the forefront of your mind.

• Try to begin each paragraph with a sentence that outlines what the paragraph will cover.
• Look at the opening sentence of each paragraph and ask yourself if it is addressing the essay question. [5] X Research source

• Try to engage with arguments that run counter to yours, and use the evidence you have found to show the flaws.
• It might help to imagine someone reading the essay, and anticipating the objections that he might raise.
• Showing that you have thought about potential problems, and you can make an argument that overcomes them, is a hallmark of an excellent essay. [6] X Research source
• If there is conflicting evidence, discuss it openly and try to show where the weight of the evidence lies.
• Don’t just ignore the evidence that runs counter to your argument.

• In the conclusion you can add a few sentences that show how your essay could be developed and taken further.
• Here you can assert why the question is important and make some tentative suggestions for further analysis.

Proofreading and Making Revisions

• As you read through it, think about how closely you stick to main overarching question.
• If you notice paragraphs that drift off into other areas, you need to be tough and cut them out.
• You have a limited number of words so it’s essential to make every one count by keeping tightly focussed on the main question.

• Think about how you use the evidence too. Do you critically engage with it, or do you merely quote it to support your point?
• A good analytical essay such discuss evidence critically at all times.
• Even if the evidence supports your argument, you need to show that you have thought about the value of this particular piece of data.
• Try to avoid making any assumptions, or writing as if something were beyond dispute.

• Remember an academic essay should be written in a formal style, so avoid colloquialisms.
• Avoid contractions, such as “don’t”, or “won’t”.
• Try to avoid paragraphs that are more than ten or fifteen lines long.
• Think about how it looks on the page. [8] X Research source

• Always include a bibliography, but don’t include references to things you haven’t read or didn’t inform your argument. [9] X Research source
• Your teacher will know if you just add a load of titles into your bibliography that are not evidenced in the body of your essay.
• Always follow the bibliography format used by your department or class.

Community Q&A

You Might Also Like

• ↑ http://www.economicshelp.org/help/tips-economic-essays/
• ↑ http://www.writing.utoronto.ca/advice/planning-and-organizing/organizing
• ↑ http://carleton.ca/economics/courses/writing-preliminaries/academic-essay-writing/
• ↑ https://www.economicsnetwork.ac.uk/archive/lse_writing/page_11.htm
• ↑ https://www.royalholloway.ac.uk/economics/documents/pdf/essaywriting-departmentofeconomics.pdf

About This Article

Before you begin writing your economics essay, make sure to carefully read the prompt so that you have a clear sense of the paper's purpose and scope. Once you have read the prompt, conduct research using your textbook and relevant articles. If you cannot find research materials, ask your instructor for recommendations. After your research is done, construct a 1-2 sentence thesis statement and begin outlining your main ideas so that your essay will have a clear structure. Make sure to leave time to write a draft and revise your work before it is due. If you want to learn more, like how to cite the sources you used for your essay, keep reading the article! Did this summary help you? Yes No

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Economics Essay Topics: Writing Ideas for Students

Writing an economics essay is all about analyzing how money, markets, and policies shape our everyday lives. Whether you're breaking down the effects of a recession or looking at how trade deals impact jobs, these essays give you a chance to explore real-world economic issues. 

Let’s face it, understanding economics isn’t just for class — it’s for life. After all, the global economy is worth over $100 trillion , and what happens in one corner of the world can ripple across the globe.

This article is here to make your life easier by offering a variety of economics essay topics to choose from. From microeconomics to broader global trends, there’s something here for everyone. 

And if, after going through the list, you still feel unsure about your topic or how to start your essay, DoMyEssay is here to help. Our economics essay writing service can assist you with everything from picking your topic to creating a well-researched essay.

So, take a look, find a topic that interests you, and start writing with confidence!

How to Choose an Economics Essay Topic?

When it comes to choosing an economics essay topic, the right choice can make your essay more engaging and focused. Here are some practical tips to help you out:

Economics Essay Topics For Students

When it comes to writing economics essays, choosing the right topic can set the stage for a great paper. Below, you’ll find a list of economics essay topics tailored specifically for students at different academic levels, starting with those suitable for high school.

Economics Essay Topics for High School

Economics might seem a bit complex, but it’s all around us, even in things we deal with every day. The topics below are all about connecting big ideas to stuff we’re all familiar with, making it easier (and maybe even a little fun) to explore the subject:

• The Impact of Rising Minimum Wage on Teenage Employment Rates
• How Inflation in 2024 is Affecting the Cost of School Supplies
• The Role of Supply and Demand in the Popularity of Streaming Services
• Analyzing the Economic Effects of Fast Fashion on Local Clothing Stores
• The Influence of Social Media Advertising on Teen Spending Habits
• How Online Shopping Discounts Affect Consumer Spending Behavior Among Teens
• The Economics Behind the Increasing Cost of College Tuition
• The Effect of Government Subsidies on Electric Vehicle Adoption Among Teens
• How the 2024 Inflation Surge is Impacting Family Grocery Budgets
• The Economic Benefits of Recycling Programs in High Schools

Economics Essay Topics for College Students

As a college student, you’re ready to deal with more complex economic issues with real-world implications. The topics below are designed to push your understanding and analysis to the next level:

• The Impact of the European Union Carbon Border Adjustment Mechanism on Global Trade
• How Remote Work Trends Are Reshaping Urban Economic Landscapes in Major U.S. Cities
• Central Bank Digital Currencies and Their Role in Reducing Transaction Costs in International Trade
• Analyzing the Effects of the U.S. Student Loan Forgiveness Policy on Consumer Spending and Savings Behavior
• The Economic Consequences of Supply Chain Disruptions in the Semiconductor Industry on Technology Markets
• The Influence of Environmental, Social, and Governance Criteria on Investment Strategies in Emerging Markets
• How China's Belt and Road Initiative Affects Economic Growth and Debt Sustainability in Participating Countries
• The Economic Effect of Minimum Wage Increases on Small Businesses in Rural vs. Urban Areas in the U.S.
• Evaluating the Effectiveness of Carbon Taxation Policies in Reducing Greenhouse Gas Emissions in the EU
• The Role of Artificial Intelligence in Labor Market Displacement and Economic Inequality in the Tech Industry

Economics Essay Topics for University Students

When you’re at the university level, economics essays push you to think critically about complex issues. The topics below are meant to challenge your understanding and give you a chance to explore specific, real-world economic situations that matter today:

• The Impact of Bitcoin Adoption on Financial Stability and Monetary Policy in Developing Nations
• How U.S.-China Trade Tariffs Are Reshaping Global Supply Chains and Emerging Markets in 2024
• The Role of Federal Reserve Rate Hikes in Managing 2024’s Inflation and Their Effect on Consumer Spending
• Brexit’s Long-Term Economic Impact on the UK Financial Sector and Global Competitiveness
• The Influence of Automation and AI on Wage Gaps and Employment in the Global Manufacturing Industry
• Mitigating Supply Chain Risks: Lessons from the 2020-2024 Semiconductor Shortages
• The Effectiveness of Carbon Credits in Reducing Global Emissions and Their Economic Impact in 2024
• Japan’s Aging Population: Economic Implications for Public Healthcare and Workforce Productivity
• The Impact of Finland’s Universal Basic Income Trials on Poverty Reduction and Economic Sustainability
• Post-2008 Financial Reforms: Are Global Banking Systems More Resilient to Future Economic Crises?

Struggling with Your Economics Essay?

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Economics Essay Topics by Categories

Economics covers a broad range of topics, from individual consumer behavior to global financial systems. To help you focus on what interests you most, we’ve broken down economics essay topics into specific categories.

Microeconomics Essay Topics

Microeconomics looks at the small-scale economic activities that affect individual consumers and businesses. Here are some specific topics to explore:

• The Long-Term Effects of Government Price Controls on Consumer Demand for Essential Goods
• How Minimum Wage Increases Influence Small Business Hiring Practices and Wage Structures
• Global Supply Chain Disruptions and Local Grocery Prices
• Market Competition as a Driver of Technological Innovation in the Tech Industry
• The Rise of Eco-Friendly Products: How Consumer Preferences Are Shaping the Market
• Gig Economy Platforms and Their Impact on Traditional Employment Models
• Price Elasticity of Demand: Consumer Response to Pricing in the 2024 Smartphone Market
• The Role of Behavioral Economics in Crafting Targeted Marketing Strategies for E-Commerce
• How Housing Market Fluctuations Affect Rent Prices and Availability in Urban Areas
• The Influence of Government Subsidies on Small Business Adoption of Renewable Energy

Macroeconomics Essay Topics

Macroeconomics looks at the big picture, focusing on how entire economies work and the forces that shape them. If you're interested in how things like government policies, global trends, or economic cycles impact our lives on a large scale, these topics are for you:

• The Effect of Central Bank Policies on Inflation Rates During Economic Recovery Phases
• Analyzing the Effects of Fiscal Stimulus Packages on Economic Growth Post-Pandemic
• The Influence of International Trade Agreements on Global Economic Stability
• How National Debt Levels Influence Long-Term Economic Growth in Developed Countries
• The Economic Implications of Population Aging on National Healthcare Systems
• Exchange Rate Fluctuations and Export Competitiveness in Emerging Markets
• How Technological Advancements Are Reshaping Productivity Growth in Developed Economies
• The Effects of Global Oil Price Volatility on National Economies Dependent on Energy Exports
• The Impact of Income Inequality on Social Mobility and Economic Development
• The Role of Government Spending in Stimulating Economic Growth During Recessionary Periods

Managerial Economics Essay Topics

Managerial economics is all about applying economic theories and methods to make better business decisions. It’s where economics meets the real world of running a company, helping managers solve problems and plan for the future:

• The Role of Demand Forecasting in Strategic Business Planning and Inventory Management
• How Cost-Benefit Analysis Influences Decision-Making in Large-Scale Corporate Investments
• Pricing Strategies in Competitive Markets: Balancing Profit Margins and Market Share
• The Impact of Outsourcing on Cost Efficiency and Operational Effectiveness in Global Corporations
• The Economic Implications of Mergers and Acquisitions in the Technology Sector
• The Role of Game Theory in Shaping Competitive Strategies Among Rival Firms
• How Managerial Economics Guides the Allocation of Resources in Multinational Companies
• The Economic Impact of Corporate Social Responsibility on Brand Reputation and Consumer Loyalty
• The Influence of Economic Forecasting on Long-Term Business Strategy Development
• Evaluating the Cost-Effectiveness of Employee Training Programs in Increasing Productivity

Consumerism Economics Topics to Write About

If you're curious about the economic side of shopping, marketing, and consumer behavior, these topics will give you plenty to think about.

• The Economic Impact of Fast Fashion on Global Supply Chains and Consumer Spending
• How Social Media Influences Consumer Purchasing Decisions and Brand Loyalty
• The Role of Consumer Credit in Driving Economic Growth and Household Debt Levels
• Analyzing the Rise of Sustainable Consumerism and Its Effects on Traditional Retail Markets
• The Economics of Subscription Services: Why Consumers Prefer Renting Over Owning
• How Consumer Boycotts Affect Corporate Policies and Market Performance
• The Influence of Online Reviews on Consumer Behavior and Sales
• The Economic Implications of Consumer Data Privacy Regulations on Digital Marketing Strategies
• The Role of Consumer Confidence in Shaping Economic Cycles and Business Performance
• How the Shift to Online Shopping Is Reshaping Brick-and-Mortar Retail Economics

Economics History Essay Topics

Economic history explores how economies have evolved over time, looking at the factors that have shaped economic systems, policies, and outcomes:

• The Economic Causes and Consequences of the Great Depression in the 1930s
• How the Industrial Revolution Transformed Economic Structures and Labor Markets in Europe
• The Role of Economic Policies in the Rise and Fall of the Roman Empire
• The Impact of Colonialism on the Economic Development of Africa and Asia
• Analyzing the Economic Effects of World War II on the Global Economy and Trade
• The Evolution of Banking Systems and Their Role in Economic Growth During the 19th Century
• How the Gold Standard Influenced Global Trade and Economic Stability in the Early 20th Century
• The Economic Legacy of the New Deal Programs in the United States
• The Role of Economic Factors in the Collapse of the Soviet Union
• The Economic Impact of the 2008 Financial Crisis on Global Markets and Policy Reforms

Socio-Economics Essay Topics

Socio-economics looks at how society and economics interact — how our social environment affects economic behavior and vice versa. It’s all about understanding the human side of economics, from income inequality to the impact of culture on spending habits:

• The Impact of Income Inequality on Access to Education and Economic Mobility in Developed Nations
• How Social Class Influences Consumer Spending Patterns, Brand Loyalty, and Lifestyle Choices
• The Economic Effects of Immigration on Local Labor Markets and Wage Levels in Host Countries
• Analyzing Gender’s Role in Economic Opportunities and Wage Disparities Across Sectors
• How Cultural Norms Shape Economic Behavior and Business Practices in Different Regions
• The Socio-Economic Impact of Gentrification on Housing Affordability and Community Dynamics
• The Role of Social Media in Shaping Economic Trends and Consumer Behavior
• How Economic Policies Affect Poverty Levels and Social Mobility in Urban Areas
• The Role of Education in Reducing Socio-Economic Inequality and Promoting Economic Opportunities
• The Economic and Social Implications of Universal Basic Income: Insights from Pilot Programs

International Economics Essay Topics

If you’re interested in understanding how economies around the world are connected and how these connections impact everything from local jobs to global financial stability, these topics are right up your alley:

• The Impact of Trade Tariffs on Global Supply Chains and International Trade Relations
• How Exchange Rate Fluctuations Influence Export Competitiveness and Trade Balances
• The Role of International Trade Agreements in Promoting Economic Growth Among Member Countries
• Analyzing the Effects of Globalization on Income Inequality Within Developing and Developed Nations
• The Economic Implications of Brexit on the European Union’s Trade and Financial Markets
• How International Sanctions Affect the Economies of Targeted Countries and Their Trading Partners
• The Role of Multinational Corporations in Shaping Global Economic Policies and Trade Dynamics
• The Impact of International Aid on Economic Development and Poverty Reduction in Low-Income Countries
• How Global Financial Crises Influence International Monetary Policies and Economic Cooperation
• The Effects of Foreign Direct Investment on Economic Growth and Industrial Development in Emerging Markets

Master Economics Essays with Ease

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Behavioral Economic Topics to Write About

Behavioral economics is where psychology meets economics, exploring how people actually make decisions rather than how we think they should:

• How Cognitive Biases Influence Consumer Spending Habits in Everyday Life
• The Role of Social Norms in Shaping Financial Decision-Making and Saving Behavior
• Analyzing the Impact of Behavioral Nudges on Retirement Savings Rates Among Different Age Groups
• How Emotional Factors Affect Investment Decisions and Stock Market Behavior
• The Economics of Impulse Buying: Understanding the Psychological Triggers Behind Consumer Purchases
• How Loss Aversion Drives Decision-Making in High-Stakes Financial Situations
• The Influence of Peer Pressure on Economic Choices Among Teenagers and Young Adults
• How Framing Effects Shape Perceptions of Value and Influence Consumer Choices
• The Role of Behavioral Economics in Designing Effective Public Policy and Social Programs
• How Mental Accounting Affects Financial Planning and Budgeting Decisions

Environmental Economics Essay Topics

Environmental economics is about understanding the economic impacts of environmental policies and how economic activities affect our planet:

• The Economic Benefits and Challenges of Implementing Carbon Tax Policies Globally
• How Renewable Energy Investments Influence Economic Growth and Job Creation in Developing Countries
• Analyzing the Impact of Deforestation on Local Economies and Global Carbon Emissions
• The Role of Economic Incentives in Promoting Sustainable Agricultural Practices
• How Environmental Regulations Affect the Competitiveness of Manufacturing Industries
• The Economics of Water Conservation: Balancing Demand and Resource Management in Water-Stressed Regions
• The Impact of Climate Change on Global Food Security and Agricultural Economics
• How Circular Economy Models Can Drive Economic Growth While Reducing Environmental Impact
• The Role of Environmental Economics in Shaping International Climate Agreements and Policies
• The Economic Costs of Air Pollution on Public Health and Productivity

Agricultural Economics Essay Topics

Agricultural economics looks at how the business of farming works and how economic factors affect food production and rural life. If you're curious about how farmers make decisions, how food prices are set, or how agriculture shapes economies, these topics are just for you:

• The Impact of Agricultural Subsidies on Farm Income and Production Efficiency in Developed Countries
• How Climate Change Is Affecting Agricultural Economics in Different Regions
• The Role of Technological Innovations in Increasing Sustainability in Agriculture
• Analyzing the Economic Effects of Trade Policies on Global Agricultural Markets
• The Economics of Organic Farming: Profitability and Market Trends in the 21st Century
• How Rural Development Programs Influence Agricultural Productivity and Economic Growth in Developing Nations
• The Economic Implications of Genetically Modified Crops on Global Food Security and Trade
• The Role of Agricultural Cooperatives in Enhancing Farmers’ Market Access and Bargaining Power
• How Water Scarcity and Resource Management Affect Agricultural Production and Food Prices
• The Economics of Farm-to-Table Movements and Their Impact on Local Food Systems and Rural Economies

Financial Economic Topics to Write About

Financial economics explores how money flows through the economy, how markets behave, and how financial decisions get made:

• The Influence of Central Bank Interest Rate Hikes on Stock Market Volatility and Investor Behavior
• Understanding How Cognitive Biases in Behavioral Finance Affect Individual and Institutional Investment Choices
• The Role of Financial Regulations in Preventing Economic Crises: A Case Study of the 2008 Financial Meltdown
• The Long-Term Effects of Inflation on Investment Portfolios
• How the Rise of Cryptocurrencies Is Disrupting Traditional Banking Systems and Financial Markets
• The Economic Impact of High-Frequency Trading on Market Liquidity and Price Stability
• How Venture Capital Investment Drives Innovation in the Tech Industry and Influences Economic Growth
• The Impact of Global Financial Crises on National Monetary Policies and Economic Recovery Strategies
• How Exchange Rate Volatility Affects International Investment Portfolios and Global Trade
• The Importance of Credit Ratings in Shaping Corporate Financing Decisions and Access to Capital

Today’s key trends in economics include everything from digital currencies and sustainability to shifts in global trade and the impact of technology. Choosing the right economics essay topic can help you dive into these important issues and understand them better. 

If you’re still unsure about your topic or need help with your essay writing, DoMyEssay is here to support you at any stage!

International Monetary Fund. (n.d.). DataMapper . Retrieved August 20, 2024, from https://www.imf.org/external/datamapper/index.php

Economics Essay Guide

Isaac Dela Torre

Monday 17th, July 2017

One of the hardest parts of the whole economics course, besides the enormous amount of dry content we are expected to know, is actually figuring out a way to write all of it in an economics essay that “synthesises knowledge, integrates economic concepts and demonstrates a clear understanding of every topic.”

With Trials looming, I thought I would prepare a quick guide on how best to approach economics essays!

The most important thing before starting to write an essay is to look at the directive verb. This should dictate how you structure your response. You should be familiar with them for all your subjects. They tend to pop up a lot in short answer questions as well!! If you need to refresh your memory check out this glossary of key words .

To show you how to write an economics essay, I’ll be integrating an essay I wrote in my trial:

“For an economy other than Australia, discuss and evaluate the strategies used to promote economic growth and development ”

First, let’s break down the question:

Discuss – Provide points for and against.

Evaluate – Provide a judgment based on criteria.

Strategies – This is asking us for policies the government put into place.

Economic growth and Development – It is important to know the difference between the two (they are defined in the essay) as well as the criteria for each so that you can properly evaluate if the strategies lead to Economic growth and development.

The first thing you should  always  do is PLAN! You should always brain dump anything your mind thinks of then assess what you have written, what is relevant, what your structure will be. Here is a picture of my planning page for this essay.

Introduction

The introduction to your essay is incredibly important. It’s your marker’s first impression of your whole economics essay; make a sh*t one and your marker will be slightly annoyed when reading the rest of it. Markers want succinct and sophisticated introductions that provide a clear outline of your essay, as well as your stance on the question. So how do you make sure your marker loves your introduction?

Your introduction should always start with a definition of the key words in the question. This shows the marker that you know exactly what you are talking about. It can also help with clarity as you have already established what the economic concepts are.

The next sentence should address the question and be your “ thesis ” for your essay. This basically outlines your argument and your stance. This is especially evident if it is a question that requires a judgement.

Your next few sentences should outline what will be in your subsequent paragraphs – this can be done fairly briefly as you will explain more within the paragraphs.

Finally, sum up your introduction by linking your paragraphs to your thesis and the question.  

Economic growth is defined as an increase in the total value of goods and services produced by an economy over a period of time, whereas economic development is a qualitative measure of a countries wellbeing based on quality of life which is measured through the Human Development Index (HDI) using criteria of GNI/capita, mean years of schooling and life expectancy. The Chinese economy has undergone major structural reforms in order to promote economic growth and development by embracing globalisation. Economic growth and development have successfully been increased through strategies such as the Open-Door Policy, Agricultural Reforms and Special Economic Zones. These changes have seen increases in China’s GDP growth as well as HDI and other development attributes. More over these policies benefits have not been shared equally as there a large extent of inequality within China.

Trend Analysis

The next paragraph should always be a trend analysis outlining the trends in whatever economic concept you are being asked. You should include what has happened to the concept in recent years as well as why it happened.

This includes the direction (increase/decrease), a high point, a low point, an average and a current point. This should be repeated for as many trends as necessary, dictated by the question. For the question posed, it asks about Economic growth as well as development in a country other than Australia. This section gives the marker the context of what you are talking about. We’ve all been told to use statistics and trends in our essays. This is where the bulk of them should go.

Prior to Deng’s rule, China was a closed economy having growth rates less than 5% as well as increasing poverty and low development. After and during Deng’s reign, the policies aforementioned boosted aggregate demand and supply seeing an increase in GDP growth that averaged 11.9% for 3 decades and reached a high of 16% in 1995 and 14% in 2007, maintaining high growth until the GFC which unlike other economies slowed but did not go into negative at 7%. GDP growth is still high but has significantly slowed since then currently at 6.9% as at 10/8/16. Due to GDP growth China’s HDI increased from 0.432 in 1980 and currently at 0.732 in 2015 showing rising development within China; reinforced by 400 million less people in absolute poverty (less than $1.25 USD a day). However, income inequality has significantly worsened within China, with the combined income of households in eastern coastal regions have 2.7x more income than inland regions.

The body of your essay is where you really start to explain the different concepts and apply them to real life global events. You’ll find that these are incredibly similar to English essays in your paragraph structure. Hopefully they will be a little easier to write!

You should always start each paragraph with a topic sentence outlining what you will be discussing.

Then you should include a definition (if applicable) of whatever the concept in this paragraph is; you should then provide an explanation of what it is and how it works. You should try to provide diagrams to show what you are talking about and explain the concepts more clearly. Never just throw in a diagram without explaining it!

The next few sentences vary depending on the question. They usually show the cause or effect of something; or show  advantages and disadvantages.

Just like how you have quotes in an English essay as textual evidence, you need to show evidence that what you are saying is true. Each time you show a cause/effect of something or provide an advantage/disadvantage, use an example from real life to prove what you are saying is true.

You should repeat steps 3 and 4 as many times as you need. With questions that ask for an explanation of how something leads to another thing, make sure you provide every necessary step in order to get there.

Finally, end each of your paragraphs with a linking sentence back to the question.

Here’s an example body paragraph to the above question:

Special Economic Zones within China have promoted both economic growth and development. Through reforms to create special economic zones along coastal ports; Transnational Corporation investment was incentivised through tax cuts and the abundant labour supply (loose legislation). From increased investment through FDI flows, Aggregate Demand (C + I + G + X – M) was boosted as seen in figure 1 where an increase in Aggregate demand results in an increase of Output from Q to Q1. This saw an increase in economic growth from 4% to approximately 7% in 1980s as investment contributed 40% within this time. Due to FDI, China’s employment within that area increased which gave these people higher incomes that could spent on food, shelter, education or healthcare, improving economic development. Businesses in China increased production of mainly manufactured foods which increased Aggregate Supply in the economy as seen in figure 2 where an increase of Aggregate supply from AS to AS1 creates an increase in GDP from Q1 to Q2.

This increase facilitated an increase in productive capacity and thus fostered economic growth. Through this policy taxation was collected from TNC’s which was used by the Government to fund expenditure in healthcare, infrastructure, education which significantly improved development throughout China. However, inequality between the coastal SEZ regions and rural areas has resulted, seeing 40% of the population still living in absolute/extreme poverty and the Lorenz gap widening as seen in figure 3.

 Thus, the special economic zone strategy has promoted both economic growth and development.

You’ve smashed out a stellar introduction, given the marker flawless body paragraphs that clearly explain economic theory and relationships and shown you are up to date with contemporary economics; the only thing left to do is to conclude your essay in a way that solidifies your greatness in the marker’s mind. So, how do you do it?

Your first sentence should be a restating of your thesis that directly links back to the question.

Your second few sentences should be a really quick summary of what you talked about in each of your paragraphs and how they relate to your argument as well as the question.

Lastly, you should sum up your argument again, taking into account any counter arguments.

Ultimately, China’s strategies to open up the economy to global markets and increase efficiency have successfully facilitated economic growth and development. Policies including the Open-Door Policy, Special Economic Zones, Agricultural Reforms and Taxation Reforms have created higher growth levels and development levels than China has previously had; enabling the transition to an emerging economy soon to be advanced. Whilst many benefits have come to China’s popular, inequality has been created between Eastern and Western/Northern provinces, seeing a significant amount of China’s population still in extreme poverty; even so, overall strategies have been effective.  

And that’s it! You’ve delivered an amazing Band 6 worthy Economics essay, and you didn’t even break a sweat!

I really hope you found this guide helpful. I know that when I first started writing economic essays I was so confused as to what to talk about. How many stats to have, how to integrate trends and diagrams… But I really hope you are a little bit more at ease now and have some direction. By all means, this is not the be all and end all structure; feel free to mix up body paragraphs and go into depth about one particular concept or split up all of your advantages/disadvantages – this is just a simple rough guide that can be moulded to suit your particular style.

As always, if you need help or clarification on anything, be sure to come and ask me!

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Tips for writing economics essays

Some tips for writing economics essays  Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.

1. Understand the question

Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version.

For example:

Q. Examine the macroeconomic implications of a significant fall in UK House prices, combined with a simultaneous loosening of Monetary Policy.

In plain English.

• Discuss the effect of falling house prices on the economy
• Discuss the effect of falling interest rates (loose monetary policy) on economy

In effect, there are two distinct parts to this question. It is a valid response, to deal with each separately, before considering both together.

It helps to keep reminding yourself of the question as you answer. Sometimes candidates start off well, but towards the end forget what the question was. Bear in mind, failure to answer the question can lead to a very low mark.

2. Write in simple sentences

For clarity of thought, it is usually best for students to write short sentences. The main thing is to avoid combining too many ideas into one sentence. If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. (at least in Economics Exams)

Look at this response to a question:

Q. What is the impact of higher interest rates?

Higher interest rates increase the cost of borrowing. As a result, those with mortgages will have lower disposable income. Also, consumers have less incentive to borrow and spend on credit cards. Therefore consumption will be lower. This fall in consumption will cause a fall in Aggregate Demand and therefore lead to lower economic growth. A fall in AD will also reduce inflation.

I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought. Nothing is wasted in the above example.

Simple sentences help you to focus on one thing at once, which is another important tip.

3. Answer the question

Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question. Therefore, as a result, they can get zero for a question. It may seem harsh, but if you don’t answer the question, the examiner can’t give any marks.

At the end of each paragraph you can ask yourself; how does this paragraph answer the question? If necessary, you can write a one-sentence summary, which directly answers the question. Don’t wait until the end of the essay to realise you have answered a different question.

Discuss the impact of Euro membership on UK fiscal and monetary policy?

Most students will have revised a question on: “The benefits and costs of the Euro. Therefore, as soon as they see the Euro in the title, they put down all their notes on the benefits and costs of the Euro. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy.

The “joke” goes, put 10 economists in a room and you will get 11 different answers. Why? you may ask. The nature of economics is that quite often there is no “right” answer. It is important that we always consider other points of view, and discuss various different, potential outcomes. This is what we mean by evaluation.

Macro-evaluation

• Depends on the state of the economy – full capacity or recession?
• Time lags – it may take 18 months for interest rates to have an effect
• Depends on other variables in the economy . Higher investment could be offset by fall in consumer spending.
• The significance of factors . A fall in exports to the US is only a small proportion of UK AD. However, a recession in Europe is more significant because 50% of UK exports go to EU.
• Consider the impact on all macroeconomic objectives . For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
• Consider both the supply and demand side . For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment (e.g. structural unemployment)

Example question :

The effect of raising interest rates will reduce consumer spending.

• However , if confidence is high, higher interest rates may not actually discourage consumer spending.

If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. (AD falls from AD1 to AD2)

• However , if there is already a slowdown in the economy, rising interest rates may cause a recession. (AD3 to AD3)

Micro-evaluation

1. The impact depends on elasticity of demand

In both diagrams, we place the same tax on the good, causing supply to shift to the left.

• When demand is price inelastic, the tax causes only a small fall in demand.
• If demand is price elastic, the tax causes a bigger percentage fall in demand.

2. Time lag

In the short term, demand for petrol is likely to be price inelastic. However, over time, consumers may find alternatives, e.g. they buy electric cars. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. Time lags.

3. Depends on market structure

If markets are competitive, then we can expect prices to remain low. However, if a firm has monopoly power, then we can expect higher prices.

4. Depends on business objectives

If a firm is seeking to maximise profits, we can expect prices to rise. However, if a firm is seeking to maximise market share, it may seek to cut prices – even if it means less profit.

5. Behavioural economics

In economics, we usually assume individuals are rational and seeking to maximise their utility. However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. This may explain over-consumption of demerit goods and under-consumption of merit goods. See: behavioural economics

Exam tips for economics – Comprehensive e-book guide for just £5

9 thoughts on “Tips for writing economics essays”

I really want to know the difference between discussion questions and analysis questions and how to answer them in a correct way to get good credit in Economics

Analysis just involves one sided answers while Discussion questions involve using two points of view

This is a great lesson learnd by me

how can I actually manage my time

The evaluation points in this article are really useful! The thing I struggle with is analysis and application. I have all the knowledge and I have learnt the evaluation points like J-curve analysis and marshall learner condition, but my chains of reasoning are not good enough. I will try the shorter sentences recommended in this article.

What kind of method for costing analysis is most suitable for a craft brewery, in order to analyze the cost of production of different types of beer_

Really useful!Especially for the CIE exam papers

Does anyone know how to evaluate in those advantages/disadvantages essay questions where you would basically analyse the benefits of something and then evaluate? Struggling because wouldn’t the evaluation just be the disadvantages ?? Like how would you evaluate without just stating the disadvantage?

This is an excellent source of adbvise

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How to Write a Good Economics Essay

Governor November 28, 2019 Real World Applications 3 Comments

Many students ask “How to write an economics essay?” This Guide to Writing a Good Economics Essay is applicable to both IB economics as well as the Singapore JC A-Level H2 economics examinations. Many of the pointers here are also applicable to large-mark case study questions.

6 Steps to Writing a Good Economics Essay

Step 1: dissect the question.

Make sure you analyse and fully understand the KEYWORDS and REQUIREMENTS of the question. This is a very important skill that is taught in our economics tuition classes .

For example, “Best”, “Most Effective” are closely related but mean different things.

Paraphrase the question to make it simpler if necessary.

Take note of the command word (eg: Explain, Discuss) as it determines the approach needed for the essay, for example, whether two sides are needed or one side is sufficient. Below are some common examples found in economics essay questions:

Command Words                                      Action Required

Account for                                                 Explain why

Analyse                                                        Break it down into step-by-step explanations

Assess                                                          For & Against. Consider other factors.

Compare                                                      Identify Similarities & Differences

Distinguish                                                   Point out differences

Discuss                                                        Explore both sides

Evaluate                                                       The Good and The Bad.

Explain                                                          Show why and how

Explain whether                                            Cover both possibilities

Examine                                                        Look closely. How so and how not so?

To What Extent                                              Yes…..But….Judgment

Remember to look out for the context in the question. This is usually given in the form of a country (eg: Singapore). The examples in your essay must be tailored to this particular context (for example, do not suggest interest rate policy for Singapore as that is considered infeasible in the Singapore context). If no context is given, any real-world example can be used.

Keep in mind the question throughout the essay and remember to always answer the question. Don’t go off-point!

Common Examiner’s Comment :  Not Answering Question (NAQ))

Step 2: Plan Your Answer

Take some time to consider what economic framework you will use to approach the question. Scribble down your main thesis and anti-thesis points. Ensure they ANSWER THE QUESTION.

Step 3: Essay Introduction

In the introduction, include definitions of keywords in the question and spell out the economic framework you will employ for your answer as well as key definitions.

Step 4: Body of Essay

In the body , there will be several paragraphs. 

The number of points/paragraphs depends on the question. It is common to require 2 main points for each 10 mark essay and similarly for 15 mark essay questions. Under each main point, there may be 1-2 sub-points.

Use one paragraph for each sub-point you are making.

However, do not be too focussed on the number of points or paragraphs. The key is to answer the question.

For each body paragraph , use TET’s PEEL(ED) structure. Include only one main idea per paragraph.

• Point – Write your point in the first sentence so that markers will know what the paragraph will be about. The topic sentence must directly answer the question!
• Explanation – Explain what you mean
• Elaboration – Provide further analysis with clear step-by-step economic reasoning. This part may be done with examples as well as diagrams.
• Link – Link your explanations back to the Point and to answer the question.
• Exemplification – Give an example to support your reasoning. It can be statistics or real-world examples (for Case Studies, evidences from the Case must be uncovered!)
• Diagram – Where possible, araw an appropriate diagram with correct labelling and refer to it in your answer. This is crucial to show economic reasoning. Diagrams are very important for economics essays!

These are of course much easier said than done! Thus, students in our economics tuition classes are regularly honed to achieve such output including with tips and tricks to spark off the correct thinking process.

Our resources including the Study Guides for A Level and IB economics also provide a very powerful and handy reference on the depth of analysis required to score the highest marks.

Common Examiner’s Comment :  Mere statements and claims. No economic rigour.

Step 5: In-Body Evaluation

This applies especially to the 15 mark essays for A-Level Economics. A total of 5 marks is catered for Evaluation. Students should attempt to achieve about 2-3 in-body evaluation marks by pointing out how the thesis and anti-thesis points may not be true due to certain assumptions made that may not hold. Students may write “However,….may not necessarily happen……It would depend on whether….”. This statement can be written after the associated sub-point has been made.

Step 6: CONCLUDING SECTION

This only applies to the 15 mark essay questions.

Earn more evaluation marks by making a reasoned judgement. Deliver your verdict like a Judge! 

Check back on the question before you embark on this. Ensure your judgement answers the question.

So the question now is, how does a judge arrive at and deliver a verdict? Certainly, you should not be summarising or merely paraphrasing your main points in the conclusion. Obviously, you cannot expect more marks by saying the same thing over and over again!

After a verdict and reasons have been provided, consider providing further relevant insights and/or recommendations.

Common Examiner’s Comment :  Repetitive. Mere Summary.

Here are some quite common types of Concluding Sections 

• Consider the relative importance of thesis and anti-thesis factors. Which factors are most important or pertinent in the given context? For example, certain policies better fit specifc types of economies.
• Consider short-term vs long-term pros and cons. Do the short-term benefits outweigh the long-term costs? Is the policy more effective in the long-term, and if so, how pressing is the problem that needs to be addressed?
• Suggest a multi-policy approach, in which each policy has strengths and weaknesses that allow them to complement each other.

There is no way to really memorise evaluation points as every question and context is different. After all, you are being tested on higher-order thinking!

There are other evaluation tips that our students will receive but the key point here is that the training of the mind to think and apply economics is essential. That is where our weekly economics lessons come into play and that is why our students are often asked questions in class and trained to think on their feet. As ex-student Xue Min from YIJC testified, Chief Tutor Mr. Kelvin Hong does not just spoon-feeds our students but mentors them in their thinking to arrive at the answers. This was different from other tutors that her classmates experienced and eventually this was the key to Xue Min’s A grade.

In your essay, write in simple and clear sentences. Everything you write should be value-adding. You do not have to spend time showing off vocabulary as no extra points are awarded for language. Focus on economic reasoning. Use succinct and effective examples which support the point you are trying to make as well as accurate diagrammatic analyses.

For samples of great economics essays, please check out our free Economics Model Essays and sample Past JC A-Level Economics Questions and Answers .

For our econs publications that are sold worldwide, please check out our A Level & IB Economics Study Guides and Model Essays Publications

About The Economics Tutor

Founded by Kelvin Hong in 1998, The Economics Tutor is one of the leading economics tuition in Singapore . We provide a comprehensive program to guide students in understanding complex economic concepts and applying them through case study analyses, essay writing and discussion of real world events.

For 24 years, the way we teach JC Economics Tuition (A Level Economics Tuition) and  IB Economics Tuition  classes helped learners appreciate economics and everything it entails on a much larger scale. We take things step-by-step, implement effective techniques in memorising frameworks and give every student the chance to nurture their ideas. 

We don’t just solely focus on helping you get stellar grades and perfect scores. We make sure that we also hone the critical thinking skills and investment / business decisions you can use outside the four walls of your classroom.

Looking for a fun, engaging and probably the best economics tutor in Singapore? Look no further—check out our extensive and high quality economics resources on the website such as our IB and A Level Economics Publications

Book your lesson today and master the nuances of economics in our next class!

its good knowledgeable post regarding ib economics commentaries. i just wanted to admin can i use your blog as reference to my students .

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Economics Revision Essay Plans

Last updated 17 Dec 2019

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This series of resources provides revision essay plans for a wide variety of essay topics, including synoptic questions.

For the 2019 papers check out our collection of videos on building A* evaluation into your answers

Have you tried our series of more than 50 Quizlet revision activities? Click here to access!

Essay Plan: Limits on Monopoly Power

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Mergers and consumer welfare (revision essay plan), air pollution and policies to control (revision essay plan), policies to improve competitiveness (revision essay plan), economic effects of higher interest rates (revision essay plan), current account deficit & policies (revision essay plan), unemployment and policy trade-offs (revision essay plan), case for cutting the national debt (revision essay plan), micro-finance (2019 revision update), essay on advertising and economic welfare, essay on oligopoly and collusion, policies to control inflation.

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Revision essay: exchange rate depreciation and macroeconomic objectives, to what extent should full-employment be the main macro policy objective, housing supply (revision essay plan), minimum alcohol pricing (revision essay plan), oligopoly and collusion (revision essay plan), building confidence in writing synoptic 25 mark essays (edexcel), behavioural and neo-classical economics (revision essay plan), barriers to entry and economic profit (revision essay plan), micro and macro impact of a plastic tax (revision essay plan), edge revision webinar: market failure and government intervention, farm subsidies (revision essay plan), competitiveness of the uk motor industry (revision essay plan), labour migration (revision essay plan), financial market failure (revision essay plan), tariff on chinese steel (revision essay plan), policies to improve food affordability (revision essay plan), reducing a trade deficit (revision essay plan), museums and government subsidy (revision essay plan), fiscal policy and inequality (revision essay plan), globalisation and inequality (revision essay plan), economic inactivity (revision essay plan), competition and consumer welfare (essay technique video), essay plan: is the euro the main cause of the crisis in greece and italy, china: successes and failures essay plan, our subjects.

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Economics Essay Topics: Valuable Tips

Economics is a subject that has gained immense popularity in recent times. It deals with interesting economics topics like the production, distribution, and consumption of goods and services. Moreover, it is a social science that provides insights into how individuals, businesses, and governments make decisions that affect the overall economy. Given its importance, economics essays have become a crucial part of the curriculum for students pursuing various degrees.

Short Description

In this article, our essay writer will take you on a journey through various exciting topics in economics. We'll cover everything from big-picture concepts like macroeconomics to more focused ideas like microeconomics, international trade, and economic policy. Our goal is to help you find the perfect topic for your economics essay—one that matches your interests and demonstrates your understanding of how economics affects the real world.

🎓 What is Economics: Understanding the Importance

Before we dive into the different economics essay topics, it is crucial to understand what economics is and its importance. Economics is a social science that deals with the production, distribution, and consumption of goods and services. It is concerned with how individuals, businesses, and governments make decisions about allocating resources to satisfy their unlimited wants and needs.

Economics as a science provides a framework for analyzing society's production, distribution, and consumption of goods and services. It helps us understand how markets work and how they can be improved to increase efficiency and welfare. Moreover, economic principles have significant implications for various social issues, including poverty, inequality, environmental sustainability, and public policy. By studying economics essay topics, we can gain insights into these issues and develop policies that promote rapid economic growth and social welfare.

When it comes to economics, the range of essay topics is vast and covers various aspects of human interactions on different levels. With so many possibilities to explore, we understand the difficulty of narrowing down your options. That's why our ' write me an essay ' experts are here to offer their guidance and support. We're ready to help you select the ideal topic if you wish to learn how to write informative essay on economics.

🧩 Tips for Choosing Your Ideal Topic

Choosing a topic is the first and most crucial step in writing an economics essay. Your topic will determine the direction and scope of your essay. Here are some tips for choosing the ideal topic from our finance essay writing service :

Tip 1: Understand the relevance of economics to daily life and choose a topic with practical applications.

Recognize that economics plays a significant role in our everyday lives, as it encompasses the production, distribution, and consumption of goods and services. Therefore, when selecting a topic, ensure its societal relevance. For instance, you might consider exploring 'The Impact of Automation on Employment Rates' or 'The Role of Government Regulations in Controlling Inflation.'

Tip 2: Opt for narrow economics research topics to make them more manageable and allow for in-depth exploration.

Instead of tackling broad subjects like 'International Trade,' narrow down your focus to something like 'The Effects of Tariffs on Small Businesses in the Agriculture Sector' or 'The Relationship Between Exchange Rates and Export Performance in Developing Countries.' By delving deeper into a specific aspect, you can provide more detailed financial analysis and insights.

Tip 3: Conduct preliminary research to identify current topics, debates, and research gaps.

Before finalizing your topic, engage in preliminary research to gain an understanding of recent trends and issues in economics. Explore academic journals, news articles, and books to discover areas that warrant further exploration. For example, you might come across intriguing research gaps such as 'The Impact of Cryptocurrencies on Financial Markets' or 'The Role of Behavioral Economics in Shaping Consumer Decision-Making.'

Tip 4: Seek input from peers or professors to enhance your topic selection process.

Collaborate with your peers during brainstorming sessions to generate fresh ideas and gain different perspectives on potential topics. Additionally, seek guidance from your professor, who can offer valuable insights and feedback to refine your chosen topic. For instance, you can discuss your ideas with classmates and receive suggestions like 'The Influence of Economic Policies on Income Inequality' or receive expert advice from your professor on 'The Implications of Globalization on Developing Economies.'

And if you want expert assistance in applying theoretical concepts to practice and creating an exceptional paper, then address your request to our custom essay writing services .

🗒 Economics Essay Topics: A Comprehensive List

If you are looking for a comprehensive list of interesting economics essay topics, you have come to the right place. Here are some ideas that you can consider:

• Central Banks in Fiscal Policy : Examine central banks' roles in setting interest rates, regulating money supply, and managing inflation.
• Automation and Labor Market : Analyze the impact of automation on jobs, including worker displacement and new job creation.
• Immigration and Labor Market : Explore immigration's effects on wages, job opportunities, and economic growth.
• Economics of Climate Change : Discuss the costs and economic impact of climate change mitigation and adaptation.
• Economics of Healthcare : Investigate healthcare costs, the role of insurance, and the impact of healthcare policies on the economy.
• Government's Economic Role : Examine how government policies, both fiscal and monetary, affect the economy.
• Globalization's Economic Impact : Analyze how globalization affects industries, trade, and employment.
• Poverty and Inequality : Explore the causes and effects of poverty and inequality and the role of government interventions.
• Economics of Education : Investigate education costs, its impact on economic growth, and the government's role in education.
• Marketplace Competition : Discuss how competition promotes economic growth, innovation, and consumer welfare.
• Economics of Entrepreneurshi p: Examine factors promoting entrepreneurship and its impact on the economy.
• Quantitative Easing and Recovery : Analyze how large-scale asset purchases influence inflation, employment, and economic stability.
• Renewable Energy Economics : Assess the costs, benefits, and challenges of transitioning to renewable energy.
• Technological Innovation : Explore how R&D and digitalization impact productivity, job creation, and economic competitiveness.
• Behavioral Economics and Decision-Making : Investigate how cognitive biases and heuristics influence consumer behavior and market outcomes.

Ready to Advance Yourself in the Economics Field?

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🧮 Macroeconomics Essay Topics

Macroeconomics is a fascinating and complex field of study that aims to understand the overall performance of an economy. It takes into account various factors such as economic growth, inflation, unemployment, and trade policies. If you are looking for some thought-provoking macroeconomics essay topics, here are a few that you might find interesting:

• The Impact of Fiscal Policy on Economic Growth
• Monetary Policy and Inflation Control: Case Studies from Different Countries
• The Role of Central Banks in Modern Economies
• The Effects of Globalization on National Economies
• Unemployment Rates and Economic Stability
• The Influence of Political Stability on Economic Development
• The Economics of Recession and Recovery
• Debt Crisis: Causes and Solutions
• The Relationship Between Exchange Rates and International Trade
• The Future of Cryptocurrencies in the Global Economy

📉 Microeconomics Essay Topics

Microeconomics focuses on the behavior of individual consumers and businesses in the market. The principles of microeconomics are used to analyze how these entities make decisions, interact with each other, and influence the overall economy. If you're interested in exploring this field further, here are some microeconomics essay topics that you might find interesting:

• The Theory of Consumer Choice and Its Applications
• Market Structures: Comparing Perfect Competition, Monopolies, and Oligopolies
• Price Elasticity of Demand: Importance and Calculation
• The Role of Government in Market Failures
• The Economics of Labor Markets and Wage Determination
• The Impact of Minimum Wage Laws on Small Businesses
• Behavioral Economics: How Human Psychology Affects Economic Decisions
• Game Theory and Its Applications in Business
• The Economics of Information and Market Efficiency
• The Impact of Technology on Production and Costs

🎏 International Economics Essay Topics

International economics deals with the economic interactions between countries, including trade, investment, and migration. Here are some international economic relations topics:

• The Pros and Cons of Free Trade Agreements
• The Impact of Tariffs and Trade Wars on Global Economies
• Exchange Rate Dynamics and International Trade
• The Role of International Organizations in Global Trade
• Economic Integration: Case Studies of the EU and NAFTA
• The Economics of Developing Countries: Challenges and Opportunities
• Foreign Direct Investment: Benefits and Risks
• Global Supply Chains and Their Economic Implications
• The Role of Multinational Corporations in Globalization
• The Impact of Currency Crises on Emerging Markets

📉 Behavioral Economics Essay Topics

Behavioral economics combines psychology and economics to analyze how people make decisions. Here are some behavioral economics essay topics:

• The Role of Cognitive Biases in Economic Decision-Making
• How Social Preferences Influence Market Outcomes
• Behavioral Insights into Consumer Credit Usage
• The Impact of Behavioral Economics on Public Policy
• Nudging and Its Effectiveness in Changing Economic Behavior
• The Psychology of Saving and Investment Decisions
• The Influence of Emotions on Economic Decisions
• Behavioral Economics and Health-Related Decision-Making
• The Economics of Happiness: Measuring Well-Being
• The Role of Heuristics in Financial Decision-Making

🚑 Healthcare Economics Essay Topics

Healthcare economics analyzes how the healthcare system operates, including the costs and benefits of healthcare interventions. Here are some healthcare economics essay topics:

• The Economics of Universal Healthcare Systems
• The Impact of Health Insurance on Medical Costs
• The Role of Government Regulation in the Pharmaceutical Industry
• Cost-Benefit Analysis of Preventive Healthcare
• The Economics of Aging Populations and Healthcare Demand
• The Effectiveness of Public Health Interventions
• The Impact of Technological Advancements on Healthcare Costs
• Healthcare Disparities: Economic Causes and Solutions
• The Economics of Mental Health Services
• The Role of Economic Incentives in Health Behavior Change

🌎 Consumerism Essay Topics

Consumerism refers to the cultural and economic mindset that encourages the acquisition of goods and services. Here are some consumerism essay topics:

• The Impact of Advertising on Consumer Behavior
• Consumerism and Its Effects on the Environment
• The Role of Credit in Modern Consumerism
• The Psychology Behind Impulse Buying
• The Economic Implications of the Sharing Economy
• The Relationship Between Consumerism and Economic Growth
• Ethical Consumerism: Trends and Economic Impact
• The Influence of Social Media on Consumer Spending
• The Role of Consumer Protection Laws in Market Economies
• The Impact of Globalization on Consumer Choices

📚 Economic History Topics

Economic history is a field of study that examines the historical development of economic systems, policies, and institutions, as well as the social, political, and cultural factors that have influenced economic outcomes over time. Here are the 10 interesting topics:

• The Great Depression: Causes, Consequences, and Recovery
• The Economic Impact of World War II
• The Industrial Revolution and Economic Development
• The Evolution of Trade and Commerce in Ancient Civilizations
• The Economic Effects of Colonialism
• The Rise and Fall of the Gold Standard
• The History of Banking and Financial Institutions
• Economic Reforms in Post-Soviet States
• The Role of Agriculture in Early Economic Systems
• The Economic History of the Silk Road

📊 Public Finance Research Topics

Public finance research focuses on the study of the government's role in the allocation, distribution, and management of resources within an economy. It encompasses the analysis of public revenues, expenditures, taxation policies, and the impact of government interventions on economic outcomes and social welfare. Here are 10 relevant economics papers topics:

• The Role of Government in Economic Stabilization
• The Impact of Taxation on Economic Growth
• Public Debt and Its Implications for Future Generations
• The Economics of Social Security Systems
• Fiscal Policy and Income Inequality
• The Effectiveness of Government Spending on Education and Healthcare
• The Role of Public-Private Partnerships in Infrastructure Development
• The Economic Impact of Environmental Taxes
• The Challenges of Pension Fund Management
• The Role of Fiscal Rules in Economic Governance

Closing Remarks 

To wrap up, economics is a subject that offers insights into how the world works. It provides a framework for analyzing complex social issues, including poverty, inequality, and public policy. Therefore, exploring economics essays topics is an excellent way of understanding the subject's relevance in the real world.

By following the tips for choosing your ideal topic and exploring the comprehensive list of economics topics for an essay, you can write an insightful and inspiring paper that contributes to the ongoing dialogue on economics.

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Updated Topics

How to Write an Economics Essay: Key Steps for Writing

What is Economics Essay?

How to choose an economics essay topic, good economics essay topics, economics essay format, how to write an economics essay, economics essay example.

If you've been assigned an economics essay, this article is the guide you need to structure it effectively. Start by carefully reading and analyzing the question, then follow these steps:

• Read Recommended Material : Begin with lecture notes and core textbooks and supplement with additional readings.
• Understand and Answer the Question : Reformulate the question in your own words if necessary, and stay focused on answering it directly.
• Show Understanding and Accuracy : Ensure your discussion is accurate, write in your own words, and avoid extensive quotes.
• Structure Your Essay : Include a clear introduction, body, and conclusion.
• Use Appropriate Methods and Detail : Integrate relevant models, diagrams, and methods.

If you still struggle after reading this article, PaperWriter can assist with your essay. Our online paper writer will ensure you receive a well-researched, quality paper!

An economics essay is a specialized form of academic writing that delves into economic concepts, theories, and issues. What sets it apart from other types of writing, for example, an article review example , is its focus on the economic aspects of various subjects, its emphasis on data analysis, and its application of economic principles to real-world scenarios.

• Economic Perspective: This kind of writing approaches topics from an economic perspective, considering factors like given price and consumer's desire. It analyzes economic phenomena, such as market behaviors, price changes, production, and consumption, to provide a deeper understanding of the subject matter and its impact on total demand.
• Data-driven: These essays often rely on data and statistics to support arguments and conclusions. Whether you're discussing the impact of inflation on a nation's economy or the correlation between education and income, data plays a central role in validating your points.
• Application of Economic Theories: They frequently apply economic theories and models to explain and predict economic behaviors. Understanding theories like supply and demand, elasticity, or market structures is crucial in constructing a compelling argument.
• Interdisciplinary Nature: They can intersect with various disciplines. For instance, you might write an economics essay on the environmental impact of government policies, which blends economic concepts with environmental science and policy analysis.
• Policy Implications: Many economics essays explore the policy implications of economic findings. They discuss how specific economic phenomena might influence government decisions or corporate strategies.
• Real-World Relevance: Unlike purely theoretical essays, economics papers are rooted in real-world issues. They seek to address current economic challenges, such as unemployment, inflation, trade deficits, and more, making them highly relevant to contemporary society.

Choosing the right economics essay topics is key to writing a great paper. Here's how to pick a topic that will set you up for success:

• Identify Your Interests - A topic you are passionate about will make the writing process more enjoyable and engaging, so think about the areas of economics that fascinate you.
• Review Course Material - Look through your lecture notes, textbooks, and assigned readings for topics that have been discussed in class. This way, you'll find a relevant and manageable topic.
• Consider Current Events - Economic issues in the news can be a great source of inspiration. Look for recent developments or ongoing debates that you can analyze.
• Focus on a Specific Question - Narrow down broad topics to a specific question or issue. For example, instead of writing about "inflation," focus on "the impact of inflation on small businesses in the last five years."
• Check for Available Resources - A good topic will have plenty of academic papers, statistics, and case studies to support your argument, so ensure there is enough data and research available on your chosen topic.
• Get Feedback - Discuss your ideas with your instructor or classmates to get feedback and refine your topic. This can help you choose a topic that is both interesting and feasible.

Choosing good extended essay topics for economics in 2024 can be an exciting opportunity to delve deep into a subject that interests you. Here are some intriguing ones from our nursing paper writing service :

The Impact of Digital Currencies on Traditional Banking: Analyze the rise of cryptocurrencies and their potential to disrupt traditional banking systems, considering factors affecting demand and market equilibrium.

Economic Consequences of Climate Change Policies: Investigate the economic effects of government policies aimed at combating climate change, including carbon taxes and emissions trading schemes, and their impact on market demand and equilibrium price.

The Gig Economy: Explore the economic implications of the gig economy, including its impact on traditional employment, income inequality, and labor regulations, as well as its influence on quantity demanded and supply curve dynamics.

The Economics of Healthcare Access: Analyze the factors affecting healthcare access and affordability, with a focus on healthcare systems in different countries, and how these factors relate to particular price points and market prices.

Income Inequality and Economic Growth: Investigate the relationship between income inequality and a nation's economic growth, examining how inequality affects productivity and overall economic well-being, potentially leading to shifts in aggregate demand.

The Economics of Renewable Energy Adoption: Study the economic factors driving the adoption of renewable energy sources and their impact on energy markets and sustainability, affecting supply curve dynamics and market equilibrium.

Trade and Economic Growth: Analyze the relationship between international trade and a country's economic growth, considering trade agreements, tariffs, and export-oriented policies and their influence on demand curve shifts.

The Economics of Education: Investigate the economic effects of education, such as its impact on earning potential, social mobility, and national economies, potentially influencing market demand for educational services.

Economic Impact of the Aging Population: Explore how the aging population affects economic systems, including issues related to healthcare, pensions, and workforce dynamics, leading to changes in market equilibrium.

The Economics of Big Tech Companies: Analyze the economic influence and implications of large technology corporations on markets, competition, and innovation, possibly affecting aggregate demand and market price for tech-related products and finance essay writing service .

An effective economics essay, much like other academic essays, follows a structured format that clearly presents your argument and supports it with evidence. Here's a detailed guide to formatting your paper:

Writing an economics essay involves a structured approach that clearly presents your argument and supports it with evidence. To write a clear essay, follow this economics essay structure:

Introduction

Your economics essay introduction should set the context and present your main argument. Here's how to structure it:

• Context Statement : Explain why the question is important. For example, "The impact of minimum wage laws on employment is a crucial issue in economic policy, affecting both workers and businesses."
• Answer the Question : Provide your main argument. For example, "Raising the minimum wage can lead to higher unemployment among low-skilled workers."
• Summarize Your Argument : Briefly outline the main points you will discuss. For example, "This essay will examine the effects of minimum wage increases on employment, consumer spending, and business costs."

The main body should logically develop your argument. Here's how to organize it:

• Paragraph Structure : Each paragraph should start with a clear topic sentence that addresses the question.
• Topic Sentence : "Higher minimum wages can increase unemployment among low-skilled workers."
• Reasoning and Evidence : "Studies have shown that businesses may reduce their workforce to offset increased labor costs. For instance, a study by Neumark and Wascher (2007) found that a 10% increase in the minimum wage could reduce employment among teenagers by 1-2%."

Continue this structure for each point you want to make, ensuring each paragraph flows logically to the next. Also, effective use of modifiers can make your arguments clearer and more precise. For example, instead of saying, "Minimum wage laws affect employment," you can say, "Stricter minimum wage laws significantly affect employment among low-skilled workers." You can find out more on how to use modifiers in our dedicated article.

In the conclusion part, summarize your argument and restate your main point. Highlight the significance of your findings.

• Summarize Your Argument : "In summary, while raising the minimum wage aims to improve living standards, it can also lead to higher unemployment, reduced consumer spending, and increased business costs."
• Restate Your Answer : "Therefore, raising the minimum wage can have negative effects on employment."
• Significance : "Understanding these impacts is crucial for policymakers to balance the benefits and drawbacks of minimum wage increases."

Stressed About Your Economics Essay Deadline?

Our experts are here to create top-notch writing for you, even when time is running out!

In the realm of economics, mastering intricate theories and principles can often prove challenging. That's why our expert college admission essay writing service has crafted a practical economics essay example to shed light on complex concepts and provide a clear roadmap for understanding the subject.

Title: The Impact of Minimum Wage on Income Inequality

Income inequality has become a pressing concern in modern economies. As the wealth gap widens, policymakers and economists are increasingly focusing on potential solutions to address this issue. One such solution is the adjustment of minimum wage rates. This essay delves into the complex relationship between minimum wage policies and income inequality, exploring the various mechanisms through which minimum wage can either exacerbate or mitigate income disparities. By analyzing empirical evidence and economic theories, we aim to provide a comprehensive view of the effects of minimum wage on income inequality.

Minimum Wage and Low-Income Workers

Minimum wage policies have a direct impact on low-income workers. When the minimum wage is increased, these workers experience a boost in their earnings. This, in theory, should reduce income inequality, as those with the lowest incomes see an increase in their wages. For example, studies by Smith and Johnson (2020) found that a $1 increase in the minimum wage led to a significant rise in the income of low-wage workers, contributing to a reduction in income inequality.

Effects on Employment and Income Inequality

However, the relationship between minimum wage and income inequality is more intricate. Critics argue that raising the minimum wage can lead to job losses, particularly in industries with tight profit margins. This raises concerns about unemployment among low-skilled workers. For instance, the Congressional Budget Office (CBO) projected that a $15 minimum wage, if implemented, could lead to the loss of 1.3 million jobs by 2024.

Regional Disparities

Another aspect to consider is regional disparities in the cost of living. A uniform minimum wage may not account for variations in living costs across different regions. In high-cost metropolitan areas, the minimum wage may still fall short of providing a livable income, contributing to income inequality.

Income Substitution

Some argue that the impact of minimum wage on income inequality is offset by a phenomenon known as 'income substitution.' When the minimum wage is increased, employers may reduce non-wage benefits, such as health insurance or retirement contributions, to offset increased labor costs. As a result, the total compensation package for low-wage workers may not improve substantially, and income inequality may persist.

Counter Arguments

It's essential to acknowledge counter arguments as well. Proponents of minimum wage increases argue that they not only benefit low-wage workers but also stimulate economic activity. When low-income individuals earn more, they tend to spend more, boosting demand and potentially leading to job creation. Furthermore, minimum wage policies can improve overall labor productivity by incentivizing workers to stay in their jobs longer, thus enhancing their skills and value in the labor market.

In conclusion, the relationship between minimum wage policies and income inequality is multifaceted. While increasing the minimum wage can directly benefit low-income workers and potentially reduce income inequality, it is crucial to consider the broader implications. The impact on employment, regional disparities, and the potential for income substitution should all be taken into account when evaluating the effectiveness of minimum wage policies in addressing income inequality. Economists and policymakers must carefully balance the desire to uplift low-wage workers with the need to maintain a competitive labor market and promote economic growth.

• Smith, A., & Johnson, B. (2020). The Impact of Minimum Wage on Income Inequality. Journal of Economic Research, 45(3), 311-328.
• Congressional Budget Office (CBO). (2021). The Effects of a Minimum-Wage Increase on Employment and Family Income. https://www.cbo.gov/publication/56193

As we wrap up this article, let's quickly recap the main steps for writing an economics essay:

• Choose a topic that interests you and aligns with your course.
• Read recommended materials thoroughly.
• Reformulate the essay question in your own words.
• Structure your essay with a clear outline.
• Use models, diagrams, and data to support your arguments effectively.

Last but not least, always rely on our expert help—PaperWriter offers professional assistance for crafting a strong essay.

How Do You Start an Economic Essay?

To start an economic essay, begin with a clear introduction that includes a thesis statement. Briefly outline the main points you will discuss in your essay. Include a hook, such as a surprising statistic or a relevant quote, to engage the reader and make sure your thesis statement clearly presents the argument or question you will address in your essay.

How Do I Write an Economics Essay?

To write an economics essay, follow these steps:

• Research : Gather relevant data and sources.
• Outline : Plan the structure of your essay.
• Introduction : State your thesis and main points.
• Body : Develop each point with evidence and analysis.
• Conclusion : Summarize your findings and restate your thesis.

Is an Economics Essay in APA or MLA?

Economics essays are typically written in APA format. This format includes in-text citations and a reference list at the end. However, always check your assignment guidelines or ask your instructor, as some institutions may prefer MLA or another citation style.

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• ‌ How to Structure Your Economics Essay . (n.d.). https://www.ibmastery.com/blog/how-to-structure-your-economics-essay

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180 + Easy Economics Essay Topics To Get You Inspired

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Published on: May 16, 2023

Last updated on: Jan 30, 2024

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Many students struggle to find interesting essay topics in the field of economics that can captivate their readers.

Without engaging essay topics, students may lose motivation and fail to develop a deep understanding of the subject matter. They may also struggle to communicate the significance of economics in our everyday lives.

Fret not! We have compiled a list of compelling economics essay topics that will provide you with a starting point for your essay.

Let's dive into our list of thought-provoking essay topics that will inspire your writing.

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Economics Essay Topics For Students

Explore a diverse range of economics essay topics that will provide students with a deeper understanding of key economic concepts.

Economics Essay Topics High School

• The role of consumer choice in shaping market demand and supply.
• Analyzing the impact of international trade on the domestic economy.
• The relationship between economic growth and standard of living.
• Exploring the causes and consequences of inflation on the economy.
• The impact of government spending and taxation on the overall economy.
• Evaluating the benefits and costs of different types of economic systems.
• The role of monetary policy in controlling inflation and promoting economic stability.
• Analyzing the impact of income inequality on social and economic well-being.
• The economic implications of technological advancements, such as automation and artificial intelligence.
• Understanding the role of the Federal Reserve and its influence on the economy in the United States.

Economics Essay Topics Grade 10

• Understanding the concept of scarcity and its impact on economic decision-making.
• Exploring the role of supply and demand in determining market prices and quantities.
• The benefits and drawbacks of globalization on local economies and workers.
• Analyzing the economic impact of natural disasters and strategies for disaster recovery.
• The role of entrepreneurship in driving economic growth and innovation.
• Examining the influence of advertising and marketing on consumer behavior.
• The economic consequences of unemployment and strategies for reducing it.
• The impact of government regulations on businesses and market competition.
• Analyzing the relationship between economic development and environmental sustainability.
• Understanding the basics of personal finance, including budgeting, saving, and investing.

Economics Essay Topics Grade 11

• Understanding the concept of supply and demand and its influence on market prices.
• Exploring the role of entrepreneurship in economic development and job creation.
• Analyzing the impact of government taxation on consumer behavior and business decisions.
• The relationship between economic indicators (GDP, inflation, unemployment) and overall economic health.
• The pros and cons of different economic systems (capitalism, socialism, mixed economy).
• Evaluating the role of banks and financial institutions in promoting economic growth.
• Examining the causes and consequences of income inequality in society.
• The role of education and human capital in fostering economic development.
• Analyzing the economic implications of population growth and migration.
• The impact of technological advancements on the labor market and job opportunities.

Economics Essay Topics Grade 12

• The impact of globalization on national economies and local industries.
• Analyzing the role of government intervention in addressing market failures.
• The economic implications of climate change and sustainable development.
• Exploring the relationship between economic growth and income inequality.
• The effectiveness of monetary policy in managing inflation and unemployment.
• Examining the causes and consequences of financial crises in different economies.
• The role of technology and innovation in shaping economic growth and productivity.
• Analyzing the economic challenges and opportunities in an aging population.
• The impact of international trade agreements on domestic industries and employment.
• Evaluating the role of fiscal policy in stimulating economic recovery and growth.

Economics Essay Topics for College Students

• The impact of globalization on income inequality.
• Analyzing the economic consequences of automation and artificial intelligence.
• Evaluating the effectiveness of fiscal policy in stabilizing the economy.
• The economics of healthcare systems and the challenges of healthcare financing.
• Understanding the economics of climate change and the costs of mitigation strategies.
• Exploring the economic implications of income inequality and its effects on social well-being.
• The economics of international trade and its impact on domestic industries and employment.

Economics Essay Topics for University Students

• Analyzing the economic impact of government debt and fiscal deficits.
• The role of central banks in monetary policy and financial stability.
• Understanding the economics of poverty and strategies for poverty alleviation.
• Evaluating the effectiveness of economic sanctions as a foreign policy tool.
• The economics of natural resource depletion and sustainable resource management.
• Analyzing the economic implications of demographic changes, such as population aging.
• Exploring the economics of housing markets and the challenges of affordable housing.
• The role of behavioral economics in understanding consumer behavior and decision-making.
• Understanding the economic consequences of income mobility and intergenerational economic disparities.
• Analyzing the economic impact of technological advancements, such as blockchain and cryptocurrencies.

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Economics Essay Topics for Different Categories 

Explore a wide range of economics essay topics tailored for various categories! 

Microeconomics Essay Topics

• The concept of elasticity and its significance in understanding consumer behavior.
• Analyzing the role of competition in shaping market outcomes and efficiency.
• The economic implications of government intervention in regulating monopolies.
• Exploring the factors influencing the pricing decisions of firms in different industries.
• The impact of income distribution on consumer demand and welfare.
• Examining the economic effects of minimum wage policies on employment and income.
• The role of behavioral economics in explaining irrational consumer choices.
• Analyzing the efficiency of market structures, such as perfect competition and monopolistic competition.
• The economic implications of information asymmetry in markets.
• Understanding the concept of opportunity cost and its significance in decision-making.

Macroeconomics Essay Topics

• Analyzing the determinants of economic growth in a country or region.
• The role of fiscal policy in managing aggregate demand and stabilizing the economy.
• Examining the impact of international trade on the balance of payments and exchange rates.
• The economic consequences of government budget deficits and public debt.
• Analyzing the relationship between inflation and unemployment (Phillips curve).
• Understanding the role of central banks in controlling money supply and interest rates.
• Exploring the causes and consequences of business cycles in the economy.
• The impact of demographic changes on long-term economic growth and sustainability.
• Analyzing the effectiveness of monetary policy in managing inflation and promoting economic stability.
• The role of international financial institutions (IMF, World Bank) in global economic governance.

Managerial Economics Essay Topics

• Evaluating the cost-benefit analysis of business decisions in different industries.
• The role of pricing strategies in maximizing firm profits and market competitiveness.
• Analyzing the economic implications of mergers and acquisitions in the business world.
• Understanding the concept of economies of scale and its impact on production costs.
• Exploring the role of market research in informing business decision-making.
• The economic consequences of outsourcing and offshoring in multinational corporations.
• Examining the relationship between advertising and consumer behavior.
• Analyzing the effects of government regulations on business operations and profitability.
• The impact of technological advancements on production efficiency and innovation.
• Understanding the concept of risk management and its application in business decision-making.

Consumerism Essay Topics

• The economics of consumer behavior and decision-making, including factors that influence choices.
• Analyzing the impact of advertising and marketing on consumer behavior and preferences.
• Understanding the economics of consumer credit and the consequences of debt.
• Evaluating the effectiveness of consumer protection laws and their impact on market outcomes.
• The role of e-commerce and technology in changing consumer behavior and market competition.
• Analyzing the impact of product differentiation on consumer choice and market competition.
• Understanding the economics of brand loyalty and its impact on market outcomes.
• Examining the relationship between income and consumption patterns in different socioeconomic groups.
• Evaluating the role of social media in influencing consumer behavior and preferences.
• The impact of globalization on consumerism and consumer culture in different parts of the world.

Economic History Essay Topics

• The impact of the Industrial Revolution on economic and social changes in the 18th and 19th centuries.
• Analyzing the causes and consequences of the Great Depression and its impact on global economies.
• Understanding the economic consequences of World War I and World War II.
• Examining the economic policies and reforms during the post-war era and their impact on economic growth.
• The role of Colonization and Imperialism in shaping global economic systems.
• Analyzing the economic impact of the Renaissance and the emergence of mercantilism.
• Understanding the economic transformations during the Agricultural Revolution.
• Evaluating the economic consequences of the Gold Standard and its eventual abandonment.
• The impact of globalization on economic systems throughout history.
• Analyzing the economic implications of major technological advancements throughout history.

Socio-Economics Essay Topics

• Understanding the relationship between socioeconomic status and access to education.
• Analyzing the impact of income inequality on social mobility and intergenerational economic disparities.
• The Role of Gender and racial inequalities in shaping socioeconomic outcomes.
• Evaluating the effectiveness of social welfare programs in reducing poverty and inequality.
• Understanding the economics of discrimination and its consequences on labor market outcomes.
• Analyzing the socioeconomic implications of urbanization and rural-urban migration.
• The role of social capital in promoting economic development and community well-being.
• Examining the impact of globalization on social and cultural dynamics.
• Understanding the relationship between healthcare access, socioeconomic factors, and health outcomes.
• Analyzing the economics of crime and its impact on socioeconomic conditions.

Health Economics Essay Topics

• The role of healthcare financing systems in ensuring access to quality healthcare.
• Analyzing the impact of health insurance coverage on healthcare utilization and outcomes.
• Understanding the economics of healthcare delivery systems, such as public vs. private healthcare.
• Evaluating the cost-effectiveness of healthcare interventions and technologies.
• Analyzing the economic implications of population aging on healthcare systems.
• The role of pharmaceutical pricing and its impact on affordability and access to medications.
• Examining the economics of healthcare disparities and the factors contributing to inequities.
• Understanding the economics of preventive healthcare and its impact on long-term costs.
• The role of health economics in health policy decision-making and resource allocation.
• Analyzing the impact of healthcare reforms on healthcare access, quality, and costs.

International Economics Essay Topics

• Analyzing the impact of trade liberalization on developing economies.
• Understanding the economics of multinational corporations and their role in global trade.
• Examining the economic implications of regional economic integration, such as the European Union.
• The role of foreign direct investment in promoting economic growth and development.
• Evaluating the impact of protectionist trade policies on domestic industries and global trade.
• Analyzing the economic consequences of currency exchange rate fluctuations.
• Understanding the economics of international aid and its impact on recipient countries.
• The role of international financial institutions, such as the World Bank and IMF, in global economic governance.
• Analyzing the economic impact of global supply chains and outsourcing.
• Understanding the economic challenges and opportunities of economic sanctions on countries.

Behavioral Economics Essay Topics

• Exploring the role of cognitive biases in decision-making and their impact on economic outcomes.
• Understanding the economics of consumer behavior and the influence of psychological factors.
• Analyzing the impact of nudges and behavioral interventions on individual choices and societal outcomes.
• The role of social norms and social preferences in shaping economic behavior.
• Evaluating the effectiveness of behavioral interventions in promoting sustainable behaviors.
• Examining the economics of addiction and the impact of behavioral factors on substance abuse.
• Understanding the role of emotions and affective factors in economic decision-making.
• Analyzing the impact of framing and context effects on economic choices.
• The role of overconfidence and self-control in financial decision-making.
• Understanding the economics of charitable giving and pro-social behavior.

Environmental Economics Essay Topics

• Analyzing the economic implications of climate change and the costs of mitigation strategies.
• Understanding the economics of renewable energy adoption and its impact on economic growth.
• Evaluating the effectiveness of economic instruments, such as carbon pricing, in reducing emissions.
• The role of ecosystem services in economic decision-making and sustainable development.
• Analyzing the economics of natural resource depletion and strategies for resource management.
• Examining the economic consequences of pollution and the costs of environmental degradation.
• Understanding the economics of biodiversity conservation and the value of ecosystem preservation.
• The role of market-based mechanisms in promoting environmental sustainability.
• Analyzing the economic impact of environmental regulations on industries and employment.
• Understanding the economics of sustainable agriculture and the costs and benefits of organic farming.

Agricultural Economics Essay Topics

• Analyzing the impact of government agricultural subsidies on farm profitability and food prices.
• Understanding the economics of food security and the challenges of feeding a growing global population.
• Evaluating the role of agricultural trade policies in promoting or hindering international agricultural markets.
• The impact of climate change on agricultural productivity and adaptive strategies for farmers.
• Analyzing the economics of genetically modified organisms (GMOs) and their implications for agriculture.
• Understanding the economic consequences of land tenure systems and their impact on agricultural development.
• Examining the role of agricultural cooperatives in improving market access for small-scale farmers.
• The economics of agricultural risk management and the role of insurance in mitigating crop losses.
• Analyzing the economics of sustainable agriculture and the transition to more environmentally friendly practices.
• Understanding the economics of agricultural value chains and the role of intermediaries in market transactions.

Financial Economics Essay Topics

• Exploring the impact of financial innovations, such as cryptocurrencies, on traditional financial systems.
• Understanding the role of central banks in regulating monetary policy and ensuring financial stability.
• Analyzing the economics of stock market bubbles and their implications for investors and the economy.
• Evaluating the impact of financial globalization on emerging markets and their vulnerability to financial crises.
• The role of behavioral factors in financial decision-making and their impact on asset prices.
• Examining the economics of banking regulation and its effectiveness in preventing financial crises.
• Understanding the economic consequences of income inequality on financial markets and economic growth.
• Analyzing the role of financial institutions in financing small and medium-sized enterprises (SMEs).
• The impact of technological advancements, such as fintech and blockchain, on the financial sector.
• Understanding the economics of financial derivatives and their role in managing risk in financial markets.

Tips to Select an Economics Essay Topic

When it comes to selecting an essay topic, the right choice can make a significant difference in the quality of your essay.

To help you navigate the process, here are some useful tips to consider when choosing an economics essay topic.

• Identify your interests: Choose a topic that aligns with your personal interests within the field of economics. It will make the research and writing process more enjoyable and engaging.
• Consider current events: Look for economic issues or trends that are currently relevant and have an impact on society. This will add relevance and significance to your essay.
• Narrow down your focus: Narrow down your topic to a specific aspect or subfield that you find intriguing. It will allow you to delve deeper and provide a more focused analysis.
• Brainstorm unique angles: Try to approach your topic from a unique angle or perspective. Look for gaps in the existing literature or unconventional viewpoints that can make your essay stand out.
• Consider the scope and feasibility: Consider the length and requirements of your essay. Choose a topic that is manageable within the given constraints and time frame.

In conclusion, selecting a compelling economics essay topic is the first step towards crafting an outstanding piece of academic writing. 

However, if you're feeling overwhelmed or pressed for time, CollegeEssay.org is here to help. Our economics essay writing service offers expert assistance from experienced writers who have a deep understanding of the subject matter. 

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Tobacco tax increases could drive youth smoking into near-nonexistence if done correctly. Sin taxes are a series of taxes aimed at products deemed not beneficial or otherwise destructive ("Sin Taxes" par. 1). Taxes aimed at tobacco products, sometimes referred to as tobacco taxes, create numerous benefits for the country. Money generated by tobacco taxes is produced at the local, state, and federal levels (par. 2). Tobacco taxes create incentives to quit usage because of health benefits deriving from it (Campaign […]

Long-term Unemployment

Long-term unemployment is when workers are jobless for the time set by the federal government which may enable some to receive unemployment benefits. In order to receive unemployment benefits by the Bureau of Statistics, they must actively seek employment for at least 4 weeks prior to receiving unemployment benefits. Many unemployed people become disheartened about the possibility of receiving unemployment benefits that they just lose hope. Everyone may not be recognized in this area to show the true numbers of […]

Unemployment in Zimbabwe

Unemployment rate is equivalent to the economically active group of people that is unemployed and more so looking for jobs. During the precolonial era, Zimbabwe had one of the strongest economies in Africa and at one point dubbed the "Bread basket of Africa". The British colonized Zimbabwe and therefore in the process; managed to bring investors into the country that was rich in minerals such as gold, platinum and silver. Health sectors, education and agriculture were by far the best […]

Workforce Performance

Background The work will cover the company MyEmploysure. Its main aim is to help Australian businesses establish the workplace structures that will be compliant to the needs of the employees. Furthermore, it helps other businesses grow in what they do by managing their human resources. The service provided involves getting to know all of the legislation that has become available in the country and provide the best service in terms of differing needs of the employees. The main aim of […]

Discussion of Government and Unemployment Insurance

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Production Planning Processes

Founded in 1944, Burgmaster took a stable market position in the machine tool industry. Its stability was propagated by its turret-head drill, which was based by Fredrick Burg. Its capacity and ability to reduce production costs made the Burgmaster drill a favorite tool in the then budding aerospace industry. With the early market, dominance came bigger plans. The Burg family publicized the company in 1961 by issuing stock on over-the-counter market (Misa & Thomas 174). Five years down the line, […]

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How to Write Essay About Economics

Economics and finance are closely related fields of study within the STEM subjects in college, often presenting a significant challenge to many students due to their complex theories and intricate mathematical models. The similarity in their foundational concepts can sometimes lead to confusion and difficulty in grasping the distinct nuances of each discipline. However, students facing these struggles have a reliable ally in Papersowl, an academic support platform that specializes in providing expert finance assignment assistance , economics homework help and other STEM subjects.

Crafting an essay on economics requires a clear understanding of economic theories, principles, and their real-world applications. Here's a comprehensive guide to help you write a well-structured and insightful economics essay:

Understanding the Essay Topic

Begin by thoroughly understanding the specific aspect of economics you're discussing. Economics covers a wide range of topics, from microeconomic concepts like supply and demand to macroeconomic issues like inflation or international trade. Determine the nature of the essay – is it analytical, argumentative, or descriptive? This will shape your approach and style of writing.

Conducting Comprehensive Research

Research is key to a successful economics essay. Utilize credible sources, including academic journals, economic textbooks, and reputable online resources. Focus on gathering data, statistics, case studies, and expert opinions that are relevant to your topic. Understanding both historical contexts and current economic trends can provide a comprehensive perspective on the subject.

Developing a Thesis Statement

Your thesis statement should clearly articulate the main argument or perspective of your essay. In economics, this might be a stance on a particular economic policy, an analysis of an economic trend, or an argument about a specific economic theory. Ensure your thesis is concise, direct, and lays the groundwork for your argument.

Planning the Essay Structure

Organize your essay in a clear, logical manner. Start with an introduction that sets the context and outlines your thesis statement. In the body, divide your main points into paragraphs, each focusing on a specific aspect of your argument. Use examples, data, and economic theories to support your points. Conclude by summarizing your main arguments and restating your thesis in light of the evidence you've presented.

Writing the Essay

Use clear and precise language in your writing. Economic concepts can be complex, so it's important to explain them clearly and avoid unnecessary jargon. Present your arguments logically, supporting them with data and examples. Be analytical and critical, especially when discussing economic models and theories.

Incorporating Data and Analysis

Economics essays often rely on data and statistical analysis. Ensure that any data used is relevant, up to date, and accurately interpreted. Graphs and charts can be effective in illustrating economic trends and relationships. Analyze the data to demonstrate how it supports your argument or provides insights into the economic issue you're discussing.

Citing Your Sources

Proper citation is essential in academic writing. Use an appropriate citation style (such as APA, MLA, or Chicago) and consistently cite all your sources, including data, theories, and quotations.

Editing and Proofreading

Review your essay for clarity, coherence, and logical flow of ideas. Check for accuracy in your economic arguments and ensure that your analysis is thorough. Proofread for grammar, spelling, and formatting issues. It can be beneficial to have someone else read your essay for feedback, especially if they have knowledge in economics.

Writing an essay on economics involves balancing in-depth understanding of economic theories and real-world examples, critical analysis, and effective communication. By carefully researching your topic, structuring your essay logically, and presenting your arguments with clarity and precision, you can create a compelling and informative economics essay that demonstrates your grasp of this dynamic field.

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• Senior Essay

The senior essay for economics majors is optional. However, the senior essay is required for consideration for Distinction in the Major. Most students who write a senior essay find it immensely rewarding and consider it one of their best experiences at Yale.

Senior essays are an opportunity for students to engage in independent, original economic research. Essays are not reviews of the literature, rather they are an examination of an hypothesis using the tools of economics. In particular, the essay must contain original research and/or analysis. They can be theoretical, empirical or computational. The senior essays that receive A’s and are awarded prizes are typically those that use economics tools (and, where appropriate, data) to offer fresh insights on questions. Topics are as diverse as recording and analyzing the behavior of black jack players, the effect of charter schools on student performance, the effect of China’s development on trade, the effect of the Fed on the stock market…. Examples of past essays are available on the department website .

See below for a guide written by thesis writers in the class of 2023.

There are no page requirements or formatting requirements for senior essays in economics. Advice regarding bibliographies, graphs, etc. should be given by your advisor. Generally, essays run about 30 pages.

Senior essay writers may receive a maximum of $500 for legitimate research expenses, provided the student has made a good-faith effort to obtain funding from Yale College. There are many funding opportunities available for research which can be found here: https://funding.yale.edu/find-funding/class-year#toc2 . Funding requests are reviewed on a case-by-case basis and must be approved by the DUS and Chair.

NOTE: Students must take two econometrics courses (or ECON 135 plus one econometrics course) in order to write a senior essay. The second econometrics course can be taken Cr/D/F for the purposes of the senior essay (but in this case it will not count toward the major requirements). The second econometrics course can be taken in the fall of senior year. 400-level applied econometrics courses (which currently include ECON 419, 438 and 439) qualify.

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Senior essays can be 1-term or 2-term essays. The difference between a 1-term and a 2-term essay is that the 2-term essay is broader in scope and/or goes in greater depth. Most economics majors do 2-term essays.  Please note that a 1-term essay cannot be done in the spring term of your senior year.

Senior essays can be done in one of several ways:

1-Term Essays

• Enroll in Econ 491 in the fall of your senior year.

2-Term Essays

• Enroll in Econ 491 and Econ 492
• Expand a term paper from a fall-term seminar in your senior year and enroll in Econ 492 ( depends on availability of seminar instructor for both semesters )

For the class of 2025

• Enroll in Econ 491 ( not necessary if you are doing a senior essay out of a fall seminar)
• Choose an advisor and a topic. You should refer to the Potential Advisors webpage for help finding an advisor who is available and is appropriate for your topic. If you have difficulty finding an advisor, see the ECON 491 instructor or the DUS for suggestions. There are many economics faculty members who may be ideal advisors for your topic.  Students may also choose a campus economist from outside of the department. (Permission of the DUS required to choose a non-economist adviser.) In order to do an essay out of a fall seminar, you need the seminar professor to agree to be your advisor (for both semesters in the case of a 2-term essay).
• Meet with your advisor regularly. It is the student’s responsibility to make sure that these regular meetings occur.
• Submit a “Senior Essay Prospectus” on or before Monday, September 30, 2024 by 4:30 pm. The prospectus must be signed by your advisor. All students planning to write a senior essay must hand in a prospectus at this time. Failure to do so results in your not being permitted to write an essay. A late prospectus will not be accepted without a Dean’s note.
• Students enrolled in a 2-term essay must submit a written progress report to their advisor on Wednesday, November 6, 2024. For essays involving substantial data collection and statistical analysis, a description of the research question and the data that has been gathered for analysis may be appropriate. For others, a portion of the essay itself or a detailed outline describing the thesis question, existing literature, and planned method of analysis is suitable. Based on this report, your advisor will be asked to give you a temporary grade of satisfactory or not satisfactory for the fall term. This temporary grade will be replaced by the final grade on your senior essay in April.
• You are allowed to switch advisor, with DUS permission, but no later than the progress report due date . In this case you need to submit a new prospectus form signed by the new advisor by the progress report due date .
• A student who wishes to change a 1-term essay to a 2-term essay must get permission from the advisor and the DUS prior to the Thanksgiving break. To convert, a student must have made satisfactory progress on the essay by that time. No conversions will be allowed after Thanksgiving.
• 1-term senior essays are due to your advisor on Wednesday, December 4, 2024 by 4:30 pm. The advisor will evaluate and grade the paper, which will be your grade for the course. The grade and evaluation will be used for determination of distinction and departmental prizes. A final version of the 1-term senior essay must be submitted on or before Wednesday, April 2, 2025 by 4:30 pm via email to Maria Volonte, Undergraduate Registrar, at [email protected]  for grading by the outside anonymous reader. Late essays will be accepted only with a Dean’s Extension. Essays that are submitted late without a Dean's Extension will receive a grade penalty (which will grow with the length of the delay).
• Note: students doing the 1-term essay may continue to make additional revisions beyond the fall term before the April due date. Please bear in mind, however, that advisors of 1-term essays may have other commitments and are not obligated to advise you beyond the fall term.

Spring 2025

• For students doing 2-term essays, enroll in Econ 492b.
• 2-term senior essays must be submitted on or before Wednesday, April 2, 2024 at 4:30 pm via email to Maria Volonte, Undergraduate Registrar, at [email protected] . Late essays will be accepted only with a Dean’s Extension. Essays that are submitted after the deadline without a Dean's Extension will receive a grade penalty (which will grow with the length of the delay).
• Advisor’s Reports with grades and comments and Reader’s Reports with grades and comments are usually available by the end of reading week in the Economics Undergraduate Registrar’s Office.

Hi Juniors, If you are reading this guide, this means (we hope) that you’re considering writing a senior essay in economics! Writing an economics thesis is an incredibly fulfilling experience, and we hope that if you feel prepared, you write one! To help clarify the process and give advice, the Economics Peer Mentors from the 2022-2023 academic year have made an updated version of this guide from the Class of 2021 that was created by Alya Ahmed and Lara Varela Gajewski, with responses from the Class of 2023.

Link to Class of 2023 Guide

Best of luck, Sarah Moon ‘23, Economics & Mathematics Ayumi Sudo ‘23, Economics

Some Takeaways: 

Most seniors, including all seniors that responded to our survey, wrote a two-term thesis. 

Seniors wrote essays on topics in:

• Labor economics
• Macroeconomics
• Econometrics
• Behavioral economics
• Public economics 
• Environmental economics
• ...and more 

Advisors were chosen from: 

• Herb Scarf RA and Tobin RA positions
• Classes taken in junior year or in the fall semester senior seminars
• Recommended by other professors/ECON 491 TA's
• Cold emailing

Econ thesis advisors are from:

• Yale Economics Department
• Yale School of Management 
• Yale School of Environment
• ...and more

Topics were inspired by: 

• Personal interests 
• Previously taken classes
• Summer research work
• Interesting data sets

Economics 491 counts as a 400 level, senior requirement course. Economics 492 counts as an elective.

Students writing a one-semester essay out of Economics 491 will receive a letter grade at the end of the fall semester based on the quality of their senior thesis. Students writing a one-semester essay out of a senior seminar will only receive a grade for the seminar on their transcript. They will not see their senior essay grade on their transcript, but it will be recorded by the department for distinction purposes. Students writing a two-semester essay by taking 491 and 492, will receive a temporary 491 grade (Satisfactory/Unsatisfactory) at the end of the fall semester. That grade will be replaced by a letter grade given for 491 and 492 based on the quality of the senior essay. Students who write a two-semester essay by taking a seminar and then 492 will receive a grade based on the requirements of the seminar in the fall. In the spring they will receive a grade for 492 based on the quality of the senior essay. Your senior essay will be graded by your advisor.

To qualify for distinction, a senior must receive a grade of A or A- from their advisor on the senior essay and have 3/4 of their economics grades be A’s or A-’s. For the purpose of distinction economics grades include related course credit, but do not include introductory microeconomics, introductory macroeconomics, the math requirement nor courses taken outside of Yale.

Senior Essay Course Lecturer:

Rebecca Toseland will be the Fall 2024 lecturer for The Senior Essay (Econ 491a) course.

Lecturer and TF office hours are by appointment only. Schedule a time on office hours sign-up sheet below.

Senior Essay TF:

Carles Aulés-Blancher will be the Fall 2024 TF for The Senior Essay (Econ 491a) course.

Office Hours Sign-up Sheet

Lecturer and TF office hours are by appointment only. Schedule a time on this sign-up sheet (must be signed-in with Eli Apps to view and edit).

If you would like to request an appointment at a different time, please email the Lecturer or TF.

Senior Essay Prizes

Essays will also be read by an anonymous economics department faculty member. Only the advisor’s grade will appear on the transcript. However, both the advisor and the anonymous readers must nominate an essay for that essay to move on to the awards committee.

Three or more prizes for outstanding senior essays are awarded each year by the economics undergraduate prize committee. The  Charles Heber Dickerman Memorial Prize  is awarded for the best senior essay; the  Ronald Meltzer/Cornelia Awdziewicz Economic Award  is awarded for one or two more outstanding senior essays and the  Ellington Prize  is awarded for one or more outstanding essays in the field of finance.

Senior Essays Nominated for Prizes

Women in Economics 2021 Senior Thesis Spotlight

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Economics Extended Essay Guide: Everything You Need to Learn

by  Antony W

April 18, 2024

This guide covers everything you need to learn before you write an IB Economics Extended Essay.

We look at the definition, structure, assessment criteria, topic selection, data collection, analysis and evaluation, and reflection.

What is an IB Economics Extended Essay?

An Economics Extended Essay is a 4,000-word autonomous, self-directed report based on a topic of personal interest. This project allows you to:

• Improve your research skills.
• Apply economic theories to a real-world issue.
• Analyze and evaluate the outcomes of your study.

The essay requires 40 hours of preparation and writing. Moreover, you’ll get help from your school-based supervisor throughout this period. The result should be a clear and well-organized analytical essay.

To write a comprehensive Economics EE, you must dedicate time to conduct in-depth research to collect meaningful and reliable data you can use to analyze the context of your theory and research issue.

IB Economics Extended Essay Structure

Your Economics EE should feature a title page, table of contents, introduction, methodology, main body, conclusion, bibliography, and appendices.

• Title Page: Write the title of the essay, the EE research question , subject, and word count.
• Table of Contents: Make sure each section mentioned in your table of contents has corresponding page numbers.
• Introduction: Explain the focus of the essay, the scope of the research, and your line of argument.
• Main Body: Write reasoned arguments for the issue under investigation. Use subheadings for methodology, analysis, discussion, and evaluation.
• Conclusion: Communicate what you’ve achieved. Mention the limitation of your research and note what your research question couldn’t answer.
• Bibliography:   Cite all the EE sources to demonstrate that you engaged in in-depth research and that you care about academic integrity.

IB Economics Extended Essay Assessment Criteria

The assessment criteria for an extended essay in economics examine focus and method, knowledge and understanding, critical thinking, presentation, and engagement. The following table is a complete summary of the marking scheme.

Economics Extended Essay Topic Selection

The best economics EE topic is the one that you find interesting enough to explore, as long as the focus remains on the fundamentals of economic concepts.

We strongly suggest you choose a topic that allows you to apply economic theories, methods and instruments present in the curriculum. Remember, the assignment requires you to conduct secondary research. However, you may also conduct pertinent original research depending on the topic you choose.

Your topic should:

• Be historical. However, your focus should be on a research issue that’s no more than five years old.
• Allow you to use economic theories and concepts to answer your research question.
• Provide opportunities for critical analysis of the information and data collected.
• Allow enough room for analysis while sticking to the scope of the essay. 

Don’t choose a broad topic because the essay needs critical and reflective thinking and analysis on something specific. And don’t pick an excessively narrow theme because you may not have access to specific data.

So choose your topic wisely, making sure that it isn’t too wide or too narrow to fit within the scope of the EE’s requirements.

Data Collection in Economics Extended Essay

You have to conduct original research on topics covered in the economics curriculum. Therefore, spend just enough time establishing value for your topic in microeconomics, macroeconomics or the global economy.

Doing original research goes a long way to show that the title and the research question is an issue unanswered by secondary sources.

If you’ve decided to write an EE on microeconomics, you may have to use primary research in the form of surveys, questionnaires, or interviews with pertinent businesspeople direct to the study subject.

Themes from macroeconomics and the global economy require more secondary research in the form of data extraction from published academic papers, historical records, government publications, newspaper/online articles, and statistical databases.

Analysis and Evaluation in Economics EE

The analysis of your economics extended essay can only be effective if you use pertinent economic theories to analyze data collected.

You have to incorporate applicable economic theories, models, and methods in your research’s findings.

For example, you can exhibit critical analysis and evaluation by a sound assessment and judgment of the amount to which the applicable economic theory is beneficial in addressing your research question .

If you cannot establish relevant connections between your selected topic and the research question, avoid establishing knowledge claims based on economic theories, models, and instruments.

Criterion C of the assessment instrument requires you to provide precise findings for each analyzed point, and there has to be interim conclusions throughout your writing.

Demonstrate knowledge and understanding of the limitations of your own research, flaws in the economic theories, and underlying assumptions of the models utilized when developing your arguments. Also, evaluate the extent to which an economic theory may or may not describe your topic.

IB Economics EE Reflection Session 

Being reflective is one of the IB learner profile characteristics, and it is now a formal requirement of the EE evaluation criteria.

IB uses the Reflections on Planning and Progress Form (RPPF), which has a 6-point value, to evaluate reflections. This is a substantial amount of points, which can determine the distinction between two grades on the final examination.  

As part of the EE requirements, you will be required to hold three mandatory reflection sessions with your supervisor, and each of these reflection sessions appear on the official RPPF.

Reflection in the EE focuses on the process of the assignment itself.

Consider the following areas of reflection for each portion of the RPPF:

• How did you overcome the problems, setbacks, and barriers you encountered, and what did you learn in the process?
• Which of the IB learner profile characteristics apply to you?
• What did you learn, and did new views emerge?  

The maximum word count for all three reflections is 500. You must write the reflection in your own word and pertain only to your personal learning journey throughout the course.

About the author 

Antony W is a professional writer and coach at Help for Assessment. He spends countless hours every day researching and writing great content filled with expert advice on how to write engaging essays, research papers, and assignments.

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How the World Became Rich by Mark Koyama and Jared Rubin and Slouching Towards Utopia, by J. Bradford DeLong: A Review Essay

This essay provides a review of two important recent books on economic growth: How the World Became Rich by Mark Koyama and Jared Rubin and Slouching Towards Utopia, by J. Bradford DeLong. Each book is noteworthy for its erudition and breadth. I explore strengths and weaknesses of these books and make some proposals on new ways to conceptualize and study long run socioeconomic development. My discussion emphasizes the importance of contingency in determining long run inequalities across countries as well the potential for ideas from complexity theory to augment standard growth modelling.

Financial support from the James M. and Cathleen D. Stone Foundation is appreciated. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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