2018 Practice Essays for A Level Economics

At this time of year lots of teachers work feverishly through essay plans as a way of revising core content and honing those all-important essay exam skills. Here is a selection of micro & macro essay titles that I have been using in class.

Micro Essays

Housing

Home ownership has become increasingly difficult to access, particularly for first-time buyers, as house price growth has outstripped growth in wages. Median house prices in England are now 7.7 times higher than median earnings. In London, the ratio can be considerably higher: in Chelsea & Fulham, it is 24.8.

Assess the policies that might be most effective in improving housing affordability in the UK economy (25)

Evaluate the micro and macroeconomic impact of a significant rise in average UK house prices (25) 

Regulation of monopoly 

Using your own knowledge, evaluate the argument that economic welfare can be best promoted through regulation of businesses with monopoly power (25) 

Barriers to entry and profit

Examine the role of barriers to entry in earning economic profit in industries of your choice. (25) 

Contestable markets

Neo-classical theory of competition implies that more firms in a market is the only way to improve outcomes for consumers”. With reference to examples, to what extent do you agree? (25)

Food prices and consumer welfare

Examine the policies a government might use to make food affordable to lower income groups. (25)

Energy market

Evaluate the argument that consumers would benefit from the government imposing a price cap on household energy bills (25)

Plastic pollution, public bads and externalities

Assess the policies that might be most effective in reducing the scale of plastic pollution in the UK and other countries of your choice (25)

Environmental market failure

Discuss the view that the overuse of common access resources is best addressed by government intervention (25)

The Gig Economy

Discuss the impact of the expansion of the gig economy on UK economic performance. (25)

Trade unions in the labour market

Evaluate the possible effects on the UK labour market of a decrease in trade union membership (25)

Discuss the microeconomic and macroeconomic effects of stronger trade unions on the UK economy (25) 

Inequality

Assess the argument that a universal basic income is likely to be the most effective policy for reducing the scale of income and wealth inequality in the UK (25) 

Evaluate the micro and macroeconomic causes of inequality and poverty in the UK (25)

Macroeconomics

Globalisation

Evaluate the extent to which globalisation inevitably leads to a rise in income and wealth inequality in one or more countries of your choice (25)

Exchange rates

Using your own knowledge, examine some of the likely macroeconomic effects of a depreciation in the sterling exchange rate (25)

Trade and the European Union

Discuss the likely micro and macroeconomic effects on the UK economy of leaving the EU customs union (25)

Evaluate the view that membership of a customs union has more advantages than disadvantages for an economy. Discuss with reference to any developed or developing country of your choice (25)

Quantitative easing

Using your own knowledge, discuss the impact that quantitative easing has had on UK macroeconomic objectives in recent years (25)

Monetary Policy

Policy interest rates in the UK have been too low for too long and now risk damaging the health of the UK economy. Assess the validity of this view (25)

Development policies

Drawing on knowledge from countries of your choice, evaluate the argument that sustainable development is best achieved by allowing free market forces to allocate resources (25)

Fiscal policy

Since the 2007-08 financial crisis, increases in tax revenues and, to a greater extent, reductions in public spending have contributed to the UK fiscal deficit falling by 7.5 percent of national income by 2016/17. Revenues increased by 1.7 percent of national income and spending decreased by 5.9 percent of national income between 2009/10 and 2016/17. 

Assess the view that the policy of fiscal austerity used by the UK government over recent years has been damaging to the long-term prospects for the UK economy. (25) 

Macroeconomic trade-offs

UK unemployment has fallen to a 45 year low of 4.2% of the labour force, yet CPI inflation remains relatively stable and close to target.

Evaluate the view that, in the case of the UK economy, the standard Phillips Curve trade-off between jobs and prices is no longer valid (25)

European Monetary Union and the EU Economy

To what extent should the Euro Area be considered an optimal currency area? (25)

Discuss the factors that may have contributed to slow economic growth in the European Union (25)

Financial economics

Examine the view that market failure is inevitable in financial markets. Justify your answer with reference to economic theory and evidence (25)

Assess the policies that have been introduced to reduce financial market failures in the UK economy since the Global Financial Crisis. (25)

Evaluate the view that increased regulation of the banking system can be damaging to the competitiveness of an economy. Discuss with reference with countries of your choice. (25) 

Assess the extent to which the financial sector has been responsible for speculative bubbles in one or more countries of your choice. (25)