How to Write Perfect Evaluation in Economics Essays

Evaluation (AO4) is worth 25% of your total marks and often separates A/A* students from B students. This guide shows you exactly how to write evaluation that examiners love.

What Is Evaluation?

Evaluation means making judgments about economic arguments, policies, or theories. It's about weighing up different perspectives and reaching a supported conclusion.

The Evaluation Framework

1. Acknowledge Both Sides

Never present a one-sided argument. Consider:

2. Use Evaluation Phrases

Master these phrases:

3. Evaluate in Context

Generic evaluation = low marks

Contextual evaluation = high marks

**Generic:** "It depends on the price elasticity of demand"

**Contextual:** "Given that the extract states BT's services are necessities for many businesses, demand is likely inelastic, meaning price increases will generate significant revenue"

The Three Levels of Evaluation

Level 1: Basic Evaluation

Simply stating "it depends" or listing pros and cons

**Example:** "The merger has advantages and disadvantages. On one hand, there are economies of scale. On the other hand, there is less competition."

**Mark:** 1-2/8

Level 2: Developed Evaluation

Explaining why something depends or how outcomes might vary

**Example:** "The impact depends on the regulatory framework. If the CMA imposes price caps, consumers may benefit from lower prices due to economies of scale. Without regulation, the firm may exploit market power to increase prices."

**Mark:** 3-5/8

Level 3: Sophisticated Evaluation

Weighing significance, considering trade-offs, reaching supported judgment

**Example:** "While economies of scale could reduce costs by up to 15% according to the extract, the key issue is whether these savings reach consumers. Given the inelastic demand for telecommunications and 35% market share post-merger, the firm has both the incentive and ability to increase prices. The most likely outcome is higher profit margins rather than lower consumer prices, unless the CMA implements strict price regulation. Therefore, the consumer benefits are likely limited without regulatory intervention."

**Mark:** 6-8/8

Evaluation Techniques

Technique 1: Significance

What matters most?

"While both factors matter, the price elasticity of demand is more significant because..."

Technique 2: Time Frames

Short-run vs long-run

"In the short run, unemployment may rise. However, in the long run, increased competitiveness could create more jobs."

Technique 3: Assumptions

What are we assuming?

"This assumes that the government can accurately identify which industries have growth potential, which may be unrealistic given..."

Technique 4: Alternative Perspectives

Different stakeholders

"From consumers' perspective, prices may fall. However, workers may face job losses as the firm cuts costs."

Technique 5: Constraints

What limits the outcome?

"The effectiveness is constrained by the size of the government's budget deficit, currently 5% of GDP according to the extract."

The Perfect Evaluation Paragraph Structure

1. **State the counter-argument or limitation**

2. **Explain why it matters**

3. **Evaluate its significance relative to your main argument**

4. **Reach a mini-conclusion**

Example:

"However, the assumption that firms will pass cost savings to consumers may not hold. Given the reduced competition post-merger, the firm may instead maximize profit by maintaining prices and increasing margins. This is particularly likely given the inelastic demand for telecommunications services mentioned in the extract. Therefore, while economies of scale are possible, the consumer benefits are uncertain and depend heavily on regulatory oversight."

Common Evaluation Mistakes

Top Tips

Practice Makes Perfect

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