May/June 2025 AS Economics Analysis

The May/June 2025 AS Level Economics papers present a balanced yet rigorous assessment of the syllabus. Paper 12 (Multiple Choice) offered a solid mix of fundamental microeconomic and macroeconomic theories, testing the limits of application. Paper 22 (Data Response and Essays) proved to be highly structured, focusing on contemporary global economic issues—with a comprehensive case study on South Africa’s economic vulnerabilities—and demanding essays that required balanced, well-evaluated arguments.

Where the Marks Are Won

In Paper 22, the data response section offered accessible marks in parts 1(a) and 1(b) for identifying trends and basic impacts. However, the true differentiator lay in the high-mark analytical questions (1(d) and 1(e)). To secure the full 6 marks, students needed to provide balanced arguments regarding free trade (AfCFTA) and policy impacts on income inequality. In the essay sections, high marks were concentrated on the ability to demonstrate AO3 Evaluation. In questions like 2(b) and 4(b), the examiner explicitly restricted evaluation marks to candidates who provided a balanced comparison of both sides before arriving at a justified, context-specific conclusion. Successfully evaluating the limitations of fiscal policy in curbing high inflation or the challenges of government provision of merit goods was the key to achieving Level 3 marks.

Common Pitfalls & Examiner Concerns

  • Confusing Merit/Demerit Goods with Public/Free Goods: In Question 2(a), examiners specifically highlighted that public goods are defined strictly by non-excludability and non-rivalry. A common error was listing public services (like roads, education, or healthcare) as public goods. These are merit goods, and using them as examples for public goods resulted in immediate mark penalties.
  • Failure to Evaluate Both Sides: In the 12-mark essay questions, a significant number of candidates lost out on the 4 evaluation marks by submitting one-sided arguments. The marking guidelines explicitly state that a one-sided response cannot gain any marks for evaluation.
  • Incorrect Interpretation of Trends: In Q1(a)(i), many students listed multiple internal fluctuations rather than identifying the overall increase in the unemployment rate between the two boundary dates.

Winning Strategy & Preparation Tips

To excel, students must master the precise definitions of market failure concepts and avoid casual terminology. Practice drawing clear, fully-labelled AD/AS diagrams to show shifts resulting from demand-side and supply-side deflation. When addressing macro policy questions, always contrast the primary policy (e.g., fiscal policy) with an alternative (such as monetary or supply-side policies) to establish a firm basis for evaluation. Use the Marshall-Lerner condition, \( PED_x + PED_m > 1 \), when analyzing the impact of exchange rate depreciations on the current account.