January 2026 Examination Series: Examiner's Verdict
The January 2026 Pearson Edexcel International A-Level Economics series offered a balanced yet rigorous assessment across all four units. While Unit 1 (Markets in Action) and Unit 2 (Macroeconomic Performance and Policy) focused heavily on core diagrams and foundational definitions, Unit 3 (Business Behaviour) and Unit 4 (Developments in the Global Economy) demanded sophisticated evaluation, particularly in game theory models and developmental metrics like the Gini coefficient and Human Development Index (HDI).
Where the Marks Were Won and Lost
A significant portion of marks resided in high-tariff evaluation questions, notably the 14-mark and 20-mark items. In Unit 1, candidates who successfully illustrated positive externalities of consumption (e.g., Disney's theme park expenditure) with clearly labeled diagrams secured top-tier marks. Conversely, in Unit 3, the evaluation of a reduction in the national minimum wage required precise labor market diagrams showing the shift from \( NMW_1 \) to \( NMW_2 \). Many students lost marks here by failing to link their diagrams directly to their analysis of business costs and labor supply responses.
Examiner Pitfalls to Avoid
- Incorrect Axis Labeling in Macro Diagrams: A common pitfall in Unit 2 was labeling the y-axis of an AD/AS diagram as 'Price' instead of 'Price Level', or the x-axis as 'Quantity' instead of 'Real Output' or 'Real GDP'. Examiners do not reward generic microeconomic labels on macroeconomic diagrams.
- Failing to Pivot Supply Curves: In Unit 1, for indirect tax diagrams, candidates frequently shifted the supply curve parallel instead of pivoting it from the origin to reflect an ad valorem tax (e.g., the 0.5% fast food tax in Zimbabwe).
- Vague Definitions: Key terms such as 'habitual behaviour' and 'net investment' were often described too loosely. Students must state that net investment is gross investment minus depreciation, or the addition to the capital stock, rather than just 'spending on assets'.
Strategic Revision Guidelines
To maximize scores in future series, candidates must practice quantitative calculations diligently. The January 2026 series featured several direct math requirements, including calculating the price elasticity of demand (PED) for streaming films, the percentage increase in the US trade deficit, and multiplier impacts. Showing complete, step-by-step workings is vital: even if the final calculation is slightly off due to rounding, intermediate marks are frequently awarded for correct formulas and percentage change steps.
Looking Ahead: Predictive Insights
Given the heavy emphasis on protectionism (tariffs and dumping) in Unit 4 and environmental market failures in Unit 1, subsequent papers are highly likely to rotate back to exchange rate mechanics, monetary policy efficacy under stagflation, and oligopolistic non-price competition strategies. Ensure you can confidently construct and evaluate game theory payoff matrices, as collusion and cooperative behaviors remain a highly tested focus area.