macroeconomics essay format

Economics Essay Examples

Ace Your Essay With Our Economics Essay Examples

Published on: Jun 6, 2023

Last updated on: Jan 31, 2024

Share this article

Are you struggling to understand economics essays and how to write your own?

It can be challenging to grasp the complexities of economic concepts without practical examples.

But don’t worry! 

We’ve got the solution you've been looking for. Explore quality examples that bridge the gap between theory and real-world applications. In addition, get insightful tips for writing economics essays.

So, if you're a student aiming for academic success, this blog is your go-to resource for mastering economics essays.

Let’s dive in and get started!

On This Page On This Page -->

What is an Economics Essay?

An economics essay is a written piece that explores economic theories, concepts, and their real-world applications. It involves analyzing economic issues, presenting arguments, and providing evidence to support ideas. 

The goal of an economics essay is to demonstrate an understanding of economic principles and the ability to critically evaluate economic topics.

Why Write an Economics Essay?

Writing an economics essay serves multiple purposes:

• Demonstrate Understanding: Showcasing your comprehension of economic concepts and their practical applications.
• Develop Critical Thinking: Cultivating analytical skills to evaluate economic issues from different perspectives.
• Apply Theory to Real-World Contexts: Bridging the gap between economic theory and real-life scenarios.
• Enhance Research and Analysis Skills: Improving abilities to gather and interpret economic data.
• Prepare for Academic and Professional Pursuits: Building a foundation for success in future economics-related endeavors.

Paper Due? Why Suffer? That's our Job!

If you’re wondering, ‘how do I write an economics essay?’, consulting an example essay might be a good option for you. Here are some economics essay examples:

Short Essay About Economics

A Level Economics Essay Examples

Here is an essay on economics a level structure:

Band 6 Economics Essay Examples

Here are some downloadable economics essays:

Economics essay pdf

Economics essay introduction

Economics Extended Essay Examples

In an economics extended essay, students have the opportunity to delve into a specific economic topic of interest. They are required to conduct an in-depth analysis of this topic and compile a lengthy essay. 

Here are some potential economics extended essay question examples:

• How does foreign direct investment impact economic growth in developing countries?
• What are the factors influencing consumer behavior and their effects on market demand for sustainable products?
• To what extent does government intervention in the form of minimum wage policies affect employment levels and income inequality?
• What are the economic consequences of implementing a carbon tax to combat climate change?
• How does globalization influence income distribution and the wage gap in developed economies?

IB Economics Extended Essay Examples 

IB Economics Extended Essay Examples

Economics Extended Essay Topic Examples

Extended Essay Research Question Examples Economics

Tips for Writing an Economics Essay

Writing an economics essay requires specific expertise and skills. So, it's important to have some tips up your sleeve to make sure your essay is of high quality:

• Start with a Clear Thesis Statement: It defines your essay's focus and argument. This statement should be concise, to the point, and present the crux of your essay.
• Conduct Research and Gather Data: Collect facts and figures from reliable sources such as academic journals, government reports, and reputable news outlets. Use this data to support your arguments and analysis and compile a literature review.
• Use Economic Theories and Models: These help you to support your arguments and provide a framework for your analysis. Make sure to clearly explain these theories and models so that the reader can follow your reasoning.
• Analyze the Micro and Macro Aspects: Consider all angles of the topic. This means examining how the issue affects individuals, businesses, and the economy as a whole.
• Use Real-World Examples: Practical examples and case studies help to illustrate your points. This can make your arguments more relatable and understandable.
• Consider the Policy Implications: Take into account the impacts of your analysis. What are the potential solutions to the problem you're examining? How might different policies affect the outcomes you're discussing?
• Use Graphs and Charts: These help to illustrate your data and analysis. These visual aids can help make your arguments more compelling and easier to understand.
• Proofread and Edit: Make sure to proofread your essay carefully for grammar and spelling errors. In economics, precision and accuracy are essential, so errors can undermine the credibility of your analysis.

These tips can help make your essay writing journey a breeze. Tailor them to your topic to make sure you end with a well-researched and accurate economics essay.

To wrap it up , writing an economics essay requires a combination of solid research, analytical thinking, and effective communication. 

You can craft a compelling piece of work by taking our examples as a guide and following the tips.

However, if you are still questioning "how do I write an economics essay?", it's time to get professional help from the best essay writing service -  CollegeEssay.org.

Our economics essay writing service is always ready to help students like you. Our experienced economics essay writers are dedicated to delivering high-quality, custom-written essays that are 100% plagiarism free.

Also try out our AI essay writer and get your quality economics essay now!

Barbara P (Literature)

Barbara is a highly educated and qualified author with a Ph.D. in public health from an Ivy League university. She has spent a significant amount of time working in the medical field, conducting a thorough study on a variety of health issues. Her work has been published in several major publications.

Need Help With Your Essay?

Also get FREE title page, Turnitin report, unlimited revisions, and more!

OFF ON CUSTOM ESSAYS

Legal & Policies

• Privacy Policy
• Cookies Policy
• Terms of Use
• Refunds & Cancellations
• Our Writers
• Success Stories
• Our Guarantees
• Affiliate Program
• Referral Program
• AI Essay Writer

Disclaimer: All client orders are completed by our team of highly qualified human writers. The essays and papers provided by us are not to be used for submission but rather as learning models only.

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

Leave a comment Cancel reply

Writing for Economics

Up: Economics Network > Writing for Economics

Essay writing

The idea of setting essays is to offer you the chance to make a longer, more complex argument. Nonetheless, in the model we recommend, the fundamentals remain the same. In each paragraph, a flow of main idea (thesis) — explanation / reasoning (justification) — evidence / example (support) is an excellent structure to use. If you read through academic writing, you will find this structure over and over. The same is true for professional writing. There are of course other structures, however this one always works and makes you sound concise and clear.

An essay has conventional sections that it is wise to follow. These are an introduction, main body and a conclusion. The 'LSE' essay structure can be described as 'say what you're going to say (intro), say it in detail (main body), say what you've said (conclusion)'. Although this may appear repetitive, it offers the reader great clarity. Also, if you think about the executive summary, background, analysis and conclusions / recommendations sections of a business report, you can see that a similar structure holds.

In your essay, try to follow this structure for your essay sections.

        Statement about the context of the question — explain why the question in important (either in the 'real' world or for the discipline of economics)

        Give your answer to the question

        Summarise your argument in support of this answer — this summary should match the order of your paragraphs

        Decide on the most logical order of your paragraphs — this might be importance, chronology or causation, but the basic flow should be simple and clear

Start each paragraph with a sentence that clearly addresses the question itself — this will be your thesis for the paragraph and if a reader only read these opening sentences, they should make sense one after the other and provide a summary of your argument Follow the opening 'topic' sentence with your reasoning and evidence for why this opening statement is valid. Be specific, not general. The more detail you can bring in, the more expert you will sound and the more persuasive your argument will be

Conclusion Summarise your argument again — as you did in the intro (different words though!)

        Restate your answer to the essay question

        So what? — say what the significance of your answer is either in the 'real' world or to the discipline of economics

Bibliography

        List the books / articles you read while researching your answer

Below you'll find two essays written by students last year. Bearing the above in mind, decide which one makes the clearer argument and which, therefore, got the higher mark.

In the year 2000, there were auctions of spectrum rights for third generation mobile telephones in several European countries. These auctions generated very different amount of revenue in different countries. How can this be explained?

Auction theory as a very useful brunch of game theory is of the great interest of modern economists. Among other reasons of its popularity stands direct importance of its ideas to modern businesses and governments. Nowadays any business sector is more or less competitive, which requires all it's participants to be dynamic and creative. Modernization and expansion is a vital part of modern business world. Governments, as owners of resources that allow businesses to expand and modernize, are always ready to sell those resources as it will eventually help businesses and certainly bring revenues.

The best way for government to sell available resources is to declare an auction. That's where auction theory comes into play. Modern auction theory is a very powerful tool for designing auctions of very profitable kind. Proper auction design will rise maximum amount of money for the government and provide companies with resources they need. However actions that maximize profits for the government have a direct influence also on the life of the citizens, as Dixit puts it: "...because of significant contributions the budget, auctions affect important macroeconomic magnitudes, such as interest rates".

So, auctions held by government, and to be more specific properly designed actions directly influence the life of modern country. In this essay I would like to make a kind of short review of auctions of spectrum rights for third generation mobile phones held in Europe in year 2000. The peculiarity of these auctions lies in the fact that revenues that were generated by European governments are different as a result of differently designed actions they held. This fact allows as to trace features of the auctions that were successful and resulted in relatively high revenues for the government.

There were 6 European countries to held spectrum right auctions in 2000. They were: United Kingdom, Austria, Germany, Italy, Netherlands and Switzerland. Let's start with United Kingdom as it was the first country to hold such kind of auctions.

Strategy that United Kingdom had chosen was selling 5 licenses during classical ascending auction. Auction resulted in huge revenues: 650 euros per capita. Firstly it should be said that auctions as any normal business activity should be competitive in order to be effective. UK spectrum auction was relatively competitive attracting 13 participants. There are several reasons why this action attracted so many participants. Firstly, UK was the first country in the world to hold spectrum rights auction. Participants were not completely aware of the usefulness of 3G cell phones, but were eager to get competitive advantage in the new generation mobile communication technology. Secondly, UK sold 5 licenses to the market with 4 major phone operators. This fact attracted new entrants, since at least one of the licenses can be potentially won by new entrants to the market. Both this facts generated highly competitive auction environment and limited possible collusions. Result of the auction was a huge success for UK government.

The next country to run spectrum rights auction in 2000 was Netherlands. This auction raised 170 euros per capita. Reason of such flop, comparing to the British result was lack of competition. When auction were run there were 5 major phone operators for 5 licenses to be sold. Few entrants decided to participate in the auction, since everybody was sure that 5 licenses will be distributed among market leaders. Another factor that made things even worse was the fact that that was an ascending auction. In this case with few participants there is a risk of collusion among market leaders. Netherlands would have generated much more money if they would some how encourage competition and change the action design in such a way that it would be possible for participants other than market leaders to place bids independently of each other to reduce collusion (sealed bid).

Italy generated 240 euros per capita and attracted 6 participants. Italy intentionally reduced amount of participants by imposing a requirements that participant of the auction must satisfy. Such situation combined with the fact that Italian auction was ascending could result in possible collusions among competitors. As a result wrong auction design resulted in low revenues.

Swiss auction was a real flop. They generated only 20 euros per capita. Here amount of participants was also artificially limited by allowing participants to join into the groups. And the price that government accepts was also reduced for some reason. Number of participants was sufficient to run profitable auction, but combination of officially permitted collusions and low reserve price resulted in absolutely insufficient revenues.

German and Austrian auctions were similar. Number of participants in both countries' auctions was low, which means that there were risks of collusion. Both countries sold licenses in blocks, allowing "number of winners be determined by bidders". Additionally Austrian government set a very low reserve price. Germany and Austria generated 615 and 100 euros per capita in revenue respectively. Germany designed auction in such a way that bids of two main market players were rationalized in a way that it resulted in high revenues.

Generally, the main difference in revenues generated from spectrum rights auctions can be explained by the difference in chosen auction design. Different auction design results in different amounts of money in revenues. Countries that tried to facilitate competitive bidding and limited the possibilities of collusion enjoyed high revenues.

Klemperer say that what really matters in auction design is "robustness against collusion and attractiveness to entry". Exactly the combination or lack of one of this factors resulted in the difference in the revenues generated by European countries. Any country that wants to increase revenues from auction must try to facilitate the competition among bidders by trying to make participation in auction as attractive as possible and eliminating any barriers for participation. There should be no cooperation between participants, as it will result in lower bids and as a consequence in low revenues. Countries should not choose auction design that facilitates collusion, as ascending auction in our case.

Of course there are several other reasons for difference in revenues, among them there is a fact that UK as a country that run the first spectrum rights auction in the world, might have enjoyed high revenues simply because participants were new to the licenses and had no idea of their true value. Overall economic situations in the counties as well as political might also result in differences in revenues. But the main reason for difference in profitability of the spectrum licenses auctions is difference in auction designs which were effective in some countries and not in the others.

BIBLIOGRAPHY

A.K. Dixit and S. Skeath, Games of Strategy , 2nd edition, Norton, 2004

Paul Klemperer, Auctions: Theory and Practice Electronic version of book on http://www.paulklemperer.org/index.htm

In the year 2000, European auctions of 3G mobile telecommunication licenses raised over 100 billion euros in government revenues. The countries that participated were United Kingdom, Netherlands, Italy, Switzerland, Germany and Austria. There was a big differential between revenues raised in each country with United Kingdom leading at 650 euros per capita and Switzerland coming in last at 20 euros per capita. The reasons for this big discrepancy in revenues is likely due to poor auction designs and the sequence in which the auctions took place.

When it comes to auction design, the two crucial components are attracting entry and preventing collusion. Ascending auctions encourage bidders to act collusively and deter weaker potential bidders as they know that the stronger bidder will always out bid him. On the other hand, (first-price) sealed-bid auctions act in the opposite direction from ascending auctions. It does not give bidders a chance to collude and encourages weaker bidders to participate. However, the disadvantage of using a sealed-bid auction is that it is more likely to lead to inefficient results than an ascending auction. The reason for this is that sometimes bidders with a lower value may beat opponents with a higher value. Hence, there is no perfect auction design and they must be customized to suit different environments and targets.

United Kingdom was the first to hold the auctions and they are a good example of how a well-planned auction design and good marketing strategies can lead to a favourable outcome. As there were five licenses and 4 incumbents, they had an ascending auction. To prevent collusion, each license could not be shared and each bidder was allowed no more than one license. Also, the fact that at least one license was available to new entrants lead to fierce competition from nine new entrants. To top it all off, UK had a solid marketing strategy which was planned over three years (1997 - 2000). All this helped contribute to UK raising 39 billion euros and being the most successful out of all the countries that took part in the 3G auctions.

Netherlands, Italy and Switzerland made the mistake of following UK and carrying out an ascending auction when a sealed-bid auction would have served them better. This resulted in revenues less than that achieved by UK.

In the case of Netherlands, they had five licenses and five incumbents. This deterred new entrants as well as facilitated collusion. For example, Deutsche Telekom colluded with local incumbents to bid for a 3G license. A sealed-bid would have worked better as this would have discouraged joint bidding, raise higher revenues as well as give new entrants a glimmer of hope.

Italy had their auction next but failed to learn from Netherlands and UK. Their auction design was not robust and failed to adapt to the environment in Italy. They adopted the UK design but had the additional rule that if bidders did not exceed licenses, the number of licenses would be reduced. They did not realize that having one more bidder than license does not assure that the outcome will be competitive. Also, Italy had failed to anticipate that firms would react differently to those in Netherlands and UK as they now had more information. Hence, weaker bidders were discouraged by previous auctions and did not bother to participate and since the participation rate was low, it made it easier for the strong bidders to collude. A bad auction design that was not tailored to the Italian environment and a low reserve price resulted in Italy only earning less than 25 billion euros.

Switzerland was the most unsuccessful amongst all the countries that held the auctions. It raised only 20 euros per capita in its ascending auction and this can be attributed to an unfeasible auction design, badly formulated rules and an absurdly low reserve price. Since the beginning, weaker bidders were deterred by the auction form. They felt that they did not stand a chance against the strong bidders and hence did not bother participating. This resulted in little competition. Furthermore, The Swiss government committed auction suicide when they permitted last-minute joint-bidding! This resulted in nine bidders colluding to become just four. The last mistake that the Swiss government made was to set a reserve price that was way too low. Since there were four licenses and four bidders, bidders ended up paying only the reserve price.

Germany and Austria chose a more complicated auction design.

Germany's auction design was an ascending auction of twelve blocks of spectrum from which bidders could create four three-block licenses or six two-block licenses. Germany's auction design was very susceptible to collusion and deterring new entrants but they were lucky and managed to earn high revenues.

Austria, on the other hand, adopted Germany's auction design but was not so lucky and only earned 100 euros per capita. The reason for this was that there were 6 bidders competing for 12 blocks of spectrum and a very low reserve price (one-eight of the reserve price in Germany). So instead of trying to get three blocks of spectrum, the bidders divided the 12 blocks of spectrum equally and paid the reserve price. This reason lead to Austria earning less per capita revenue than UK and Germany.

The other factor that affected the amount of revenue earned by each country was the sequence in which the auctions took place. Looking at the results of the 3G auctions held in 2000, it can be seen that the most successful auctions were the first of their type (United Kingdom and Germany). The reason for this is that between auctions, bidders learnt from previous auctions, came up with new strategies and learnt more about their rivals. However, the auction designs remained almost the same and were unable to keep up with the new ideas the bidders had come up with. This resulted in the later auctions not being as successful as the first.

In conclusion, the reason for the different revenues earned amongst the countries that took part in the 3G auctions is due to the auction designs and the sequence in which they took place. Revenues depend on how well the auction design is able to attract entry and prevent collusion. Also, it has to be able to adapt to new environments. For example, a good auction design takes into account the information bidders have and the knowledge they have gained from previous auctions. A sensible reserve price is of high importance as well and should not be overlooked like in the case of Switzerland and Germany. Lastly, auction design is not "one size fits all" and the failure of the government to design an auction that suited the country's environment lead to different revenues being earned.

References:

A.K. Dixit and S.Skeath, Games of Strategy, 2 nd edition, Norton, 2004

Professor Kenneth Binmore, "Economic Theory Sometimes Works"

A State-Ranker’s Guide to Writing 20/20 Economics Essays

So, you want to know how to improve your preliminary and HSC economics essay...

Cory Aitchison

State Ranks (Economics and Chemistry) & 99.95 ATAR

1. Introduction to this Guide

So, you want to know how to improve your preliminary and HSC economics essay writing? Look no further! In this guide, I’ll be covering key tips to help YOU smash the structure, amaze with your analysis, conquer the contemporary, and ultimately master the mystery of maximising your marks.

My name is Cory Aitchison, currently one of the Economics tutors at Project Academy . I completed the HSC in 2018, achieving a 99.95 ATAR as well as two state ranks — 6th in economics and 12th in chemistry. Graduating from Knox Grammar School, I also topped my grade in economics and was awarded Dux of the School for STEM. Believe it or not, at the beginning of Year 11 I initially struggled with economics due to the transition in conceptual thinking required in approaching economic assessments in comparison to my other subjects such as English. However, through Year 11 and Year 12, I built up key tips and strategies — that I’ll be sharing with you in this guide — to help me not only consistently achieve top marks in my internal assessments, but to ultimately go on to achieve the results I did in the HSC.

2. The Correct Way to Write

First off, you need to understand something: HSC economics essays are NOT english essays! They aren’t scientific discussions, nor geography reports, nor historical recounts. They’re unique and often quite different from other essays that you might’ve done previously in high school. The style of writing and approach to answering questions can be confusing at first, but follow these tips and you’ll be ready in no time:

Phrasing should be understandable and concise

Unlike some subjects where sophisticated phrasing is beneficial to getting marks, HSC economics essays should emphasise getting your point across with clarity. This means don’t run your sentences on for too long, be aware of any superfluous words, and make sure you actually understand yourself what you’re trying to say in a sentence.

For example:

GOOD: “An increase in interest rates should lead to decreased economic growth.”

NOT GOOD: “As a result of a rise or increase in interest rate levels from their previous values, the general state of economic activity in the domestic economy may begin to decrease and subsequently indicate the resultant situation of a decrease in economic growth.”

“Understandable” does not mean slang or lacking in terminology

Just because you want to get a point across, doesn’t mean you should resort to slang. In fact, using economic terminology is a strong way to boost your standing in the eyes of the marker — if you use it correctly! Always make sure you use full sentences, proper English grammar, and try and incorporate correct economic terms where possible.

GOOD: “This was a detrimental outcome for the economy.”

NOT GOOD: “This was a pretty bad outcome for the economy.”

GOOD: “The Australian Dollar depreciated.”

NOT GOOD: “The Australian Dollar decreased in value.”

Analysis should be done using low modality

Modality just refers to the confidence of your language — saying something “will” happen is strong modality, whereas saying something “might” happen is considered low modality. Since a large portion of economics is about applying theory, we have to make sure that we are aware that we are doing just that — talking about the theoretical, and so we can’t say for sure that anything will happen as predicted.

Some useful words include:

May, Might, Should, Could, Can theoretically

Don’t use words like:

Must, Will, Has to, Always

3. How to use Statistics

“What’s most important is that this contemporary is used to bring meaning or context to your argument…”

Using contemporary (statistics) can often seem straightforward at first, but using it effectively is usually harder than it looks. Contemporary generally refers to applying real-world facts to your analysis to help strengthen (or weaken) the theoretical arguments. This can include many different statistics or pieces of information, including:

• Historic economic indicators, such as GDP, inflation, GINI coefficients, exchange rates, or unemployment rates
• Trends or economic goals, such as long-term GDP growth rates, or the stability band for inflation
• Names of economic policies, such as examples of fiscal or microeconomic policies
• Specifics of economic policies, such as the amount spent on infrastructure in 2017

Whatever statistics you deem relevant to include in your essay, what’s most important is that this contemporary is used to bring meaning or context to your argument — just throwing around random numbers to show off your memorisation skills won’t impress the marker, and in fact might appear as if you were making them up on the spot. Rather, your use of contemporary should actively improve your analysis.

GOOD: “Following a period of growth consistently below the long-term trend-line of 3%, the depreciation of the AUD to 0.71USD in 2017 preceded an increase in economic growth to a 10-year high of 3.4% in 2018.”

NOT GOOD: “Economic growth increased by 1 percentage point in 2017 to 2018”

NOT GOOD: “GDP was $1.32403 trillion in 2017”

GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy — up 30% from 2016’s $31 billion, and 20% higher than the inflation-adjusted long-term expenditure.”

NOT GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy”

That in mind, don’t think that these statistics have to be overly specific. As long as the general ideas gets across, it’s fine. You don’t need to say “$1,505,120” — just “$1.5 million” will suffice.

Ask yourself: if I get rid of the contemporary from my paragraphs, does the essay still have enough content?

Further, don’t get roped into the “contemporary trap” — where you fall into the mindset that “if I memorise all these statistics, my essay will get good marks”. Including numbers and contemporary at the expense of having a robust theoretical explanation and analysis will definitely be detrimental in getting you top marks. Particularly in trial exams and the HSC when you’ve got all these numbers floating in your head, it can be tempting to try and include as many as you can (often just because you can!). To avoid this, always try and focus your arguments on analysis and syllabus content first, contemporary second. Ask yourself: if I get rid of the contemporary from my paragraph, does the essay still have enough content?

4. Must Have Insightful “However”s

If you really want to extend your analysis and show the marker that you know your stuff, including insightful “however”s is a strong way to do it. What I mean by this is that for each of your paragraphs, try and include a counterpoint that highlights the flexible nature of economic theory. There are broadly two kinds of “however”s:

Theoretical “However”s

These are counterpoints that are based on theory — often there will be theoretical limitations for many of the concepts you come across in economics. It’s always important to include these limitations as it reinforces your knowledge of the actual content of economics.

“Although the Budget and fiscal policy can be effective at stimulating economic growth, it is also restricted by the “implementation time lag” limitation since it is only introduced annually.”

Contemporary “However”s

These are counterpoints that are based on contemporary — highlighting how although something should happen theoretically, this isn’t usually what is observed in reality. This can be particularly powerful in that it combines your knowledge of theory with your analysis of contemporary.

“Despite the expansionary stance that the RBA adopted in 2012–2016 for monetary policy, Australia’s annual GDP growth rate has remained below the trend rate of 3% — against the theoretical expectations. This could be attributed to factors such as …”

5. How to Interpret the Question

When you first look at a question, before you even put pen to paper, you need to come up with a plan of attack — how can you ensure that you answer the question correctly, and give the markers what they want? There are three main points to look for when interpreting essay questions:

Knowing your verbs

As you may (or may not) know, NESA has a bank of words that they like to pull from when writing questions, and these words impact how they want their question answered. These verbs should help steer your analysis onto the right path. For example:

Explain: “Relate causes and effects”

To answer these questions, you have to demonstrate a thorough understanding of how theory and events impact each other and the economy. This verb particularly emphasises the idea of a process — you need to be able to make clear links as to how each step leads to the next, rather than just jumping to the outcomes.

Analyse: “Draw out and relate implications”

These questions usually wants you to investigate the connections between different aspects of economic theory. Generally this involves showing a holistic understanding of how different areas (such as micro- and macroeconomic policies) come together to make a cohesive impact on the economy. It usually helps to think back to the syllabus and how the points are introduced when figuring out which ideas to link together.

Assess/Evaluate: “Make a judgement based on value/a criteria”

These require you to not only critically analyse a topic but also come to a conclusion given the arguments you provided. This type of question usually gets you to make a judgement of the effectiveness of some economic theory — such as the ability for economic policies to achieve their goals. Make sure you actually include this judgement in your answer — for example, say things like “strong impact”, “highly influential”, “extremely detrimental”.

Discuss: “Provide points for and/or against”

Similar to assess, discuss wants you to provide arguments towards and against a particular topic. Although it doesn’t require a specific judgement to be made, it does place greater emphasis on showing a well-rounded approach to the argument — providing relatively equal weightings towards both the positive and negative sides of the discussion.

Linking to the syllabus

When trying to understand what the question wants from you, I found the best way to approach it is to consider what points in the syllabus it is referring to (To do this, you need to have a solid understanding of the syllabus in the first place). Once you’ve located it, try drawing upon other topics in the vicinity of that dot point to help you answer the question.

For example, if the question mentions “trends in Australia’s trade and financial flows”, then you know from the syllabus that you probably need to talk about value, composition and direction in order to get high marks. Further, it may also be worth it to bring in ideas from the Balance of Payments, as this is the next dot point along in the syllabus.

Digging into the source

For essay questions that provide a source for you to include in your answer, this is another goldmine from which you can discern what the marker really wants. If the source mentions microeconomic policy, it probably wasn’t on accident! Even if it may not be obvious how to link that to the question immediately, try and draw upon your knowledge and implications and see if there’s a different angle that you might be missing.

6. Putting it All together — Structuring your essay

My essays usually consisted of four main parts: an introduction, a background paragraph, body paragraphs, and a conclusion.

Introduction

Your introduction should not be long. I rarely wrote an introduction longer than three sentences.

First sentence: Answer the question (thesis)

Try and answer the question, while including the main key words of the question in your answer. Don’t directly restate it — instead, try and add meaning to it in a way that represents what you’re trying to get across in your essay.

For example: if the question was “Assess the impact of microeconomic policy in improving economic growth in Australia”, my first sentence might be “Microeconomic policy has had a significant impact in increasing aggregate supply and thus long-term economic growth in Australia since the 1960s”.

Next sentences: Introduce your arguments/paragraphs

In this part, it’s fine to almost list your paragraphs — there’s no need to do a whole sentence explaining each. That’s what the paragraphs themselves are for.

For example: using the same question as above, my next sentence might be “Although trade liberalisation may have been detrimental for short-term growth in manufacturing, policies such as competition policy and wage decentralisation have been highly effective in fostering economic growth in Australia”.

Background Paragraph

The aim of a background paragraph is threefold: to get across the main theory that underpins your argument; to establish the economic context for your argument; and to show the marker that you “know your stuff”.

For example, if the essay was on monetary policy, you may want to describe the process of Domestic Market Operations (how the reserve bank changes the cash rate) in your background paragraph, so that you don’t need to mention it each time you bring up changing stances. Further, it may be good to showcase the current economic climate — such as GDP growth rate and inflation — to give context to your analysis in your essay.

Some ideas for what to include in this paragraph include:

• Key theory such as DMOs or the rationale for macroeconomic policies
• Economic indicators that provide context to the time period that you’re working in, such as growth rates, inflation, unemployment rates, exchange rates, cash rates, etc.
• A brief description of the recent Budget (if talking about fiscal policy), including the stance and outcome

Bear in mind that this paragraph shouldn’t be too long — it isn’t the focus of your essay! Instead, aim for around 100–150 words at most. At this point in your essay, it may also be good to include a graph (more on this later).

Body Paragraphs

There’s no set rule for how many body paragraphs to include in your essay — I generally aim for at least 4, but there’s no real limit to how many you can (or should) write! Unlike english essays, it’s totally acceptable to just split a paragraph in two if you feel like the idea is too large to be written in one paragraph (as long as each paragraph makes sense on its own).

When writing a paragraph, I usually follow this structure:

Topic sentence

This is where you answer the question, and outline your argument or idea for this paragraph. If you are doing a discuss/assess/evaluate essay, try and make your judgement or side obvious. For example: “Trade liberalisation has been detrimental in its impact on economic growth in manufacturing industries”.

These sentences are where you bring together the theory and contemporary to build up your argument. Remember, the theory should be the focus, and contemporary a bonus. Try and weave a “story” into your analysis if you can — you should be showing the marker how everything fits together, how causes lead to effects, and ultimately bringing together relevant economic concepts to answer the question. Feel free to also include graphs here when they help strengthen your argument.

Fit in your “however” statements here. For discuss questions, this however section may take up a larger part of the paragraph if you choose to showcase two opposing arguments together.

Link your argument back to your overarching thesis, and answer the question. Following on from your “however” statement, it can often be a good idea to use linking words such as “nevertheless”, “notwithstanding”, or “despite this” to show that taking into account your arguments presented in the “however” statement, the overarching idea for the paragraph still remains.

Like the introduction, your conclusion should not be overly long. Rather, it should briefly restate the arguments made throughout your essay, and bring them all together again to reinforce how these points help answer the question.

Aggregate Demand / Supply Graph

Graphs are a great way to add extra spice to your essay — not only does it help strengthen your explanations of economic theory, it also makes it look like you wrote more pages than you actually did! Graphs, such as aggregate demand graphs, business cycle graphs, and Phillips curves, can be great in reinforcing your ideas when you mention them in your essay. They usually come either in background paragraphs or body paragraphs, and it’s usually best to draw them about a quarter to a third of the page in size. It’s also good practice to label them as “Figure 1” or “Graph 1”, and refer to them as such in your actual paragraph.

Although they can be beneficial, don’t try and force them either. Not all essays have appropriate graphs, and trying to include as many as you can without regards for their relevance may come across negatively in the eyes of the marker.

8. How to Answer Source Questions

If your essay question involves a source, try and refer to it multiple times throughout your essay. For example, this can be in the background paragraph and two of your body paragraphs. Rather than just adding in an “…as seen in the source” to one of your sentences, try and actively analyse it — show the marker that you understand why they included it, and how it actually helps strengthen your arguments.

9. Plan You Essay

Don’t be afraid to use the first page of your answer booklet as a planning page. Taking a couple minutes before you answer the question to lay out your scaffold for body paragraphs is a great first step to helping ensure that you actually end up answering the question to the best of your abilities. It also serves as a great reminder to keep checking as you finish each paragraph to ensure that you actually wrote what you intended. Just make sure to make it clear to the marker that those scribbles on the page are just a plan, and not your actual essay!

10. How to Prepare for Essays in the Exam

I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself.

Don’t go into the exam with a pre-prepared essay that you are ready to regurgitate — not only are there too many possibilities to prepare for, but it’s also unlikely that you’ll actually answer the question well with a pre-prepared response.

Instead of memorising sets of essays before the exam, I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself. What I mean by this, is that in your mind you have a “bank of different paragraphs” and ideas from all the topics in the syllabus, and when you read the exam, you start drawing from different paragraphs here and there to best formulate a response that answers the question. This allows you to be flexible in answering almost any question they can throw at you.

On top of this, ensure you have a solid foundation in both the theory and contemporary — knowing what statistics or topics to include in your essay is useless knowledge unless you have the actual content to back it up.

Now that you know the basics of how to write a good HSC economics essay, it’s time to start practising! Have a go, try out different styles, and find what works best for you. Good luck!

If you would like to learn from state ranking HSC Economics tutors at Project Academy, we offer a 3 week trial for our courses. Click to learn more !

Complete Guide to HSC Physics Module 7 - The Nature of Light

Studying HSC Physics? This one is for you.

Physics Tutor, 95 in Physics

Complete Guide to HSC Biology Module 7 - Infectious Diseases

Studying HSC Biology? This one's for you. Key concepts, sample answers, and tips - all in one spot.

Beau Burrows

Biology Tutor, Band 6 in Biology

The Fundamental Physics Strategy

Not everything has to be as difficult as Quantum Physics. Here is my short guide to HSC Physics.

Edward Townsend-Medlock

Head of Physics (18' - 22')

Common Module State-Rank Essay Showcase: Nineteen Eighty-Four

The following essay was written by Project Academy English Tutor, Marko Beocanin

Marko Beocanin

99.95 ATAR & 3 x State Ranker

Maximise Your Chances Of Coming First At School

Trial any Project Academy course for 3 weeks.

NSW's Top 1% Tutors

Unlimited Tutorials

NSW's Most Effective Courses

Access to Project's iPad

Access to Exclusive Resources

Access to Project's Study Space

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.

• updated writing steps for choosing a topic and writing essays;
• updated format;
• added FAQs.
• Essay Writing in Economics -Useful Advice . (n.d.). https://www.st-andrews.ac.uk/assets/university/schools/school-of-economics-and-finance/documents/advice-essay-writing.pdf
• ‌ How to Structure Your Economics Essay . (n.d.). https://www.ibmastery.com/blog/how-to-structure-your-economics-essay

How to Write an Article Review: A Simple Step-by-Step Guide

How to Write an Article: Simple Steps for Success

How to Write a Nursing Essay: The Definitive Guide

How to Write a French Revolution Essay Guide

Best AI Essay Writer Tools

How to Write a Reflective Essay?

How to Write a Persuasive Essay that Spurs Action - Expert Tips

How to Write an Illustration Essay?

How to Write an Essay: Advice From Professionals

Reference Library

Collections

• See what's new
• All Resources
• Student Resources
• Assessment Resources
• Teaching Resources
• CPD Courses
• Livestreams

Study notes, videos, interactive activities and more!

Economics news, insights and enrichment

Currated collections of free resources

Browse resources by topic

• All Economics Resources

Resource Selections

Currated lists of resources

Economics Revision Essay Plans

Last updated 17 Dec 2019

• Share on Facebook
• Share on Twitter
• Share by Email

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

Topic Videos

Chains of Reasoning and Evaluation: Fuel Prices in the UK

Exam Support

EU Customs Union Membership (Revision Essay Plan)

Practice Exam Questions

Market for Electric Vehicles (Revision Essay Plan)

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.

Study Notes

Why is high inflation a problem?

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.

• › Criminology
• › Economics
• › Geography
• › Health & Social Care
• › Psychology
• › Sociology
• › Teaching & learning resources
• › Student revision workshops
• › Online student courses
• › CPD for teachers
• › Livestreams
• › Teaching jobs

Boston House, 214 High Street, Boston Spa, West Yorkshire, LS23 6AD Tel: 01937 848885

• › Contact us
• › Terms of use
• › Privacy & cookies

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

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 .

Go ahead. We are all for helping students learn economics well.

Thank you, A lot of info!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

See You In Our Next Econs Lesson!

5.0 stars out of 130  G o o g l e reviews

#1 Economics Tuition Singapore – Kelvin Hong - The Economics Tutor

• +65 9336 7511
• [email protected]
• JC Econs Guide
• IB Econs Guide
• Testimonials
• A Level & IB Economics Study Guides and Model Essays
• Blog Resources
• Economics Videos
• Economics Notes, Infographics & Mindmaps
• Real-World Examples
• Economics Definitions
• Past A Level Economics Questions & Answers

Registration

• Register / Schedule a Class

Copyright © 2024 The Economics Tutor

• PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
• EDIT Edit this Article
• EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Forums Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
• Browse Articles
• Learn Something New
• Quizzes Hot
• Happiness Hub
• This Or That Game
• Train Your Brain
• Explore More
• Support wikiHow
• About wikiHow
• Log in / Sign up
• Education and Communications
• College University and Postgraduate
• Academic Writing

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 130,361 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

• Send fan mail to authors

Reader Success Stories

Twyla Kirkpatrick

Dec 8, 2020

Did this article help you?

Arshad Bhatti

Sep 10, 2017

Fungai Samantha Zuva

Jan 30, 2019

James Smith

Oct 2, 2016

Mallesh Itti

Jul 10, 2022

Featured Articles

Trending Articles

Watch Articles

• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

Don’t miss out! Sign up for

wikiHow’s newsletter

Economics - Essay Examples And Topic Ideas For Free

Economics is the social science that studies the production, distribution, and consumption of goods and services. An essay could explore economic theories, discuss contemporary economic challenges like inflation or unemployment, or analyze the impact of economic policies on societal wellbeing and global interactions. We have collected a large number of free essay examples about Economics you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

Apple in Microeconomics

As inter-specific competition increases between companies, especially in the same product line, there is need to come up with better and innovative ways to market their brand. These product enhancement techniques need to meet the current consumer demands and tastes and preferences. However, there are other factors like quality, quantity, and price that also affect how consumers view an individual product and its purchasing power. Proper market intelligence is very crucial to an enterprise especially in the early development stages […]

Economics of Globalization

Tata Motors Limited located in India and in different countries all over the world. where economic growth has started for decades. Still, there are some challenges that can affect the growth rate in all respect. Like GDP; growth; business cycle; inflation; unemployment; political stability; trade balance. Real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in the year 2016-17 is likely to attain a level of 121.65 lakh crore INR, with a growth rate of 7.1 percent over […]

Unemployment as a Social Issue

Introduction. Unemployment is real issue in the modern society and has devastating impact on people's lives. The effects are not limited to the unemployed individual but also family members and the wider community. As unemployment is time bound, with the duration of unemployment have far reaching effects even affecting the living standards in retirement 2. The loss of an income by a parent can potentially damage the prospects of the next generation. In additional to the personal impact, unemployment is […]

We will write an essay sample crafted to your needs.

Unemployment Within the Economics

Most of the socio-economic studies indicated that unemployment within the economics of crime studies is positively related to crime. Committing crime without failing while unemployed has a higher reward (Burdett et al, 2004). Unemployment shows lack of opportunity for participation in the labour market and the acquisition of legitimate earnings (Freeman, 1999). The exclusion from legitimate income opportunities raises the expected returns from crime, the economics of crime theories have confirmed. Although, most of the empirical studies show a positive […]

Fact Vs. Opinion: the Positive-Normative Divide in Economics

Ever been in a debate where someone drops a stat, and someone else counters with what should be done? Welcome to the world of economics, where this kind of back-and-forth isn't just common; it's the crux of understanding two key concepts: positive and normative economics. Picture them as two sides of a coin – one’s about hard facts, and the other’s about what we feel ought to be the case. First up, positive economics. This is the nitty-gritty, the down-to-earth […]

How Competitive Forces Shape Strategy

Introduction Porter How Competitive Forces Shape Strategy was introduced in the year 1979. In this article, Porter talks about five forces that affect the performance of a company in the market. These forces include firstly the threat of entrance which talks about how new industries try to enter the market. Porter continues by arguing that strategy can be perceived as creating defenses in opposition to competitive forces or even finding a spot in an industry where there is a weaker […]

Economics Symbolism: a Harmonious Ballet of Services in the Economic Arena

In the intricate tapestry of economic choreography, services emerge as the unsung maestros, conducting nations forward and acting as the stealthy architects of prosperity. This essay delves into the pivotal role played by service industries in fostering economic growth, spotlighting their significance as the unseen engines of innovation, employment, and overall economic vitality. At the core of a flourishing economy lies the dynamic realm of services. While the limelight often gravitates towards manufacturing and agriculture, services discreetly hold a central […]

Zimbabwe’s Economics Turmoil: Navigating the Perils of Hyperinflation

Zimbabwe's history is marked by economic upheavals, with one of the most striking chapters being the era of hyperinflation, a period that shook the nation to its core and left an indelible mark on its economic landscape. In the early 2000s, Zimbabwe experienced a cataclysmic economic downturn characterized by hyperinflation—a staggering surge in prices that eroded the value of the country's currency at an exponential rate. The hyperinflationary spiral was catalyzed by a complex interplay of factors, including fiscal mismanagement, […]

What are Private Property Rights?

Property and prosperity rights are inseparably linked. The significance of having strongly protected and clearly defined property rights is currently widely recognized among policymakers and economists. A private property right provides people the exclusive right to utilize their resources as they see appropriate (Calandrillo, et al., 2015). That power over what belongs to them leads property users to be responsible of all the costs and benefits of employing those assets in a certain way. The process of weighing between benefits […]

Deciphering the Circular Flow Model in Economics

In the discipline of economics, the Circular Flow Model is a cornerstone that offers a basic comprehension of the inner workings of the economy. This model illustrates the movement of commodities, services, and monetary transactions while simplifying the many relationships inside an economy into a system that is simple to comprehend. The goal of the article is to explore the complexities of this model by looking at its composition, the functions of its main actors, and its wider applications in […]

Youth Unemployment

Exploring factors hindering the implementation of youth development package in addressing youth unemployment:) CHAPTER ONE 1. Introduction 1.1. Background of the study The reason for investing in young people is clear. Today, 1.2 billion adolescents stand at the challenging crossroads between childhood and the adult world (UNICEF, 2011). Youths represent 25 per cent of the working age population and account for 47 per cent (88 million) of the world’s unemployed people. An estimated 515 million young people, nearly 45 per […]

Unemployment Analysis

The U.S. Government considers a person unemployed if they are at least 16 years of age, willing and able to work, and who are actively seeking employment, but have not found a job. To be considered unemployed, someone does not have to lose a job. The unemployment rate also includes people who are returning to work, for instance, a stay at home parent returning to work. A person entering the job market for the first time, like a recently graduated […]

What are Taxes?

What are taxes, and why do people have to pay? Taxes are financial charges from our government in order to pay for our public needs, and in 2016 the government collected 3.9 trillion dollars in taxes to spend. There are many different types of taxes like income tax, federal income tax, sales tax, property tax, estate tax, and more. Twenty percent of households pay around seventy percent, and the top one percent has to pay a quarter of taxes. The […]

View of Students about Unemployment

This study considers the effectiveness of public and private sector SME-development programs and the current development of SMEs in AJK. The study presents several major findings and includes a brief review of international literature. To examine the status of small and medium-sized enterprises and their developmental strategies, a questionnaire survey was conducted among owners and top managers. A Chi-square test was used to analyze the information. The results reveal that SMEs face numerous challenges, including burdensome business rules and regulations, […]

How does the Unemployment Rate Effect the Economy?

The rate of unemployment is more than a percentage of unemployed people, it is used as key a macroeconomic indicator when determining the health of an economy. The unemployment rate is found by taking the labor force and dividing it by the number of people who are currently searching for a job, also know as the number of unemployed people. The unemployment rate is composed from three types of unemployment: frictional, cyclical, and structural. This could create a potentially serious […]

Rule of Law and Political Stability in Nigeria’s Governance and Economic Policy

Institutional qualities are the major determinant of good governance within every aspiring country. Factors such as voice and accountability, regulatory control, control of corruption, government effectiveness, rule of law, and political stability come into play. This study will focus on the rule of law and political stability as proxies for good governance. Good governance of a nation pertains to the management of the public sectors of the economy in terms of accountability, efficiency, and effectiveness, along with the free flow […]

Unemployment in the Country

An adage says "an idle hand is a devil's workshop". The enormous growth of unemployment in our society today calls for alarm, and it is expedient for all nations to figure out what leads to this great dilemma. Unemployment has messed up our society because of three major factors, such as increase in population, lack of encouragement for self-employment, and change in technology. One of the major causes of unemployment is increase in population. Increase in population is an event […]

Income Inequality and Economic Growth in Pakistan

In time series data, which indicates that increasing income inequality is likely to spur higher levels of GDP, certain examples become apparent. For instance, Shahbaz (2010) employed a time series data on Pakistan for the period 1971-2005, using the ARDL bound test approach, to determine the relationship between income inequality and economic growth in Pakistan. The results show that income inequality is positively and significantly related in both long-run and short-run with economic growth in Pakistan. Gelan and Price (2003) […]

Main Issues of American Taxes

Taxes are something every American has to do in their life. It's a responsibility that every American file their taxes. A lot may not agree with the idea of taxes up, so they don't pay them. Should I pay them? Is a popular tax question and, should taxes be the same for everyone? My goal in this paper is to see both sides of the two questions and figure the reason behind them and get a further understanding of taxes. […]

Examining GDP and Unemployment

Research over the years has shown that unemployment rates and Gross Domestic Product (GDP) figures go hand in hand. This paper aims to define and discuss GDP, and its relation to economic growth. Additionally, the paper will discuss how the use of fiscal or monetary policies can effectively battle recession and aid in the growth of the economy, and how losing a battle to a recession can severely impact unemployment and the unemployment rate, along with other factors leading to […]

Unemployment in the U.S

As indicated by the Bureau of Labor Statistics, the rate of unemployment in the United States has increased at an alarming rate. Approximately six million people in the United States are unemployed, according to deptofnumber.com. This has negatively affected the nation's economy. The statistics reveal the unemployment rates for various groups of people in the country. The rate of unemployment among men was at 7.0 percent, and approximately 6.4 percent among women. The increase in the rate of employment among […]

The Problems on Income Inequality

In this part, we continue to briefly summarize our empirical analyses based on the ARDL model techniques adopted. The findings of this study are summarized below. Firstly, the objectives of the study were analyzed using cointegration analysis tests and the ARDL bound test on the national level data, covering the period of 2004-2016. The first step taken in the cointegration test involved carrying out a unit root test for each variable and determining their order of integration. The results indicated […]

GDP and Unemployment

The gross domestic product (GDP) is the measure of goods and services produced in a country during a year (Boone 2016). When GDP is increasing, the economy is in expansion mode. When GDP is decreasing, the economy is in a recession. Economic growth occurs when the GDP increases over time. When economists use the term "economic growth," they are normally referring to sustained increases that occur over a substantial time period, rather than the quarterly changes often discussed in the […]

Unemployment in Society

When workers become involuntarily unemployed, there are several costs associated which they will unquestionably have to bear. These could come from the fact that there are certain firm-specific skills that an individual has, thus leading to scarce opportunities for individuals searching for jobs matching their specific skills (Lazear, 2003). Moreover, the costs could be associated with the model proposed by Harris and Holmstrom (1982), in which they stated that the workers have to be assumed to be risk averse and […]

An Issue of Tobacco Taxes

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

Discussion 1 a). Medicare is a program by the federal government in US, which offers health cover to its citizens. The package is extended to cover old people who have 65 years and above as well as young individuals who have disabilities. The health cover plays a major role in providing financial plus health security paying many medical health services to persons it covers (Edwards, 2014). Major characteristics of this program include; many people using the program have medical problems […]

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, […]

Related topic

Additional example essays.

• Was Henry Ford a Robber Baron or Captain of Industry?
• Compare And Contrast In WW1 And WW2
• Followership and Servant Leadership
• Why Abortion Should be Illegal
• Death Penalty Should be Abolished
• Research Paper #1 – The Trail of Tears
• A Class Divided
• The Significance of Following Orders in Daily Life and the Fire Service
• What Caused the Fall of the Western Roman Empire
• Ten Commandments of Computer Ethics: Steering Society to a Responsible Digital Future
• Self-awareness as the Main Factor of Emotional Intelligence
• Free will vs Determinism

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.

1. Tell Us Your Requirements

2. Pick your perfect writer

3. Get Your Paper and Pay

Hi! I'm Amy, your personal assistant!

Don't know where to start? Give me your paper requirements and I connect you to an academic expert.

short deadlines

100% Plagiarism-Free

Certified writers

• Share full article

Advertisement

Supported by

Guest Essay

‘People Are Angry’: An Economics Brain Trust Debates How to Fix America

By Jay Clayton Gary D. Cohn Betsey Stevenson and Justin Wolfers

Mr. Clayton was chairman of the Securities and Exchange Commission and Mr. Cohn was a director of the National Economic Council in the Trump administration. Ms. Stevenson and Mr. Wolfers are economics professors at the University of Michigan.

Much of the 2024 election has been extraordinary. One thing has not, and that’s the quality of the debate about America’s economic future. Beyond the vibes — both the angry ones and the joyful ones — there’s been little to help Americans decide who better can steward the $29 trillion economy.

Here at Times Opinion, we thought we would try to fill the void. What follows is a back-and-forth between two top experts on the center left and two on the center right, discussing topics including housing, taxes, debt and, at one point, washing machines. Representing the left are the University of Michigan economics professors Betsey Stevenson and Justin Wolfers. And on the right, Jay Clayton, the head of the Securities and Exchange Commission under Donald Trump, and Gary Cohn, former president of Goldman Sachs and head of the National Economic Council in the Trump White House. This conversation has been edited.

Economic Priorities

Times Opinion: If you were advising the next president, what should be his or her top priorities?

Betsey Stevenson and Justin Wolfers, center-left economists: People are angry about the economy. Whether they blame educated elites, billionaires or immigrants, their anger comes from the same place: The system feels rigged.

Football without refs is just a rumble, and so is an economy without rules. Capitalism works partly because it turbocharges greed, but it also fails because it turbocharges greed. The profit motive gave us the iPhone, artificial intelligence and electric vehicles, but it’s also given us online hucksters, corporations that prefer to merge rather than compete and online subscriptions that take a moment to click and hours to cancel. Smart regulation creates more of the former and less of the latter.

Our tax code is a Rube Goldberg machine built by an army of lobbyists. The next president should eliminate loopholes that stack the deck in favor of the have-plenty. (Hint: Start with the “carried interest” loophole. ) Fund an Internal Revenue Service that ensures everyone plays by the rules. Congress largely ignores the nearly $2 trillion given away every year through breaks, loopholes and inefficiencies in the tax code. That’s where the unfairness and bloat live. Get rid of those and you can make progress on the deficit.

Public anger reflects the challenges that people face paying for essentials such as food, gas, health care, housing and child care. Politicians talk a lot about food and gas. The others are bigger challenges, and the federal government can fix them. Health care prices make no sense. NIMBY politics make it hard to build new houses. Kids don’t vote, so it’s no surprise that child care is underfunded, even though research shows that investment pays off in spades.

Our plea to the next president is to tune in to the public’s anger. Understand and empathize, and you’ll come to see it not as a political constraint, but as the fuel that can power a once-in-a-generation presidency.

Jay Clayton and Gary Cohn, from the center-right: Betsey and Justin, we’re with you on the anger, but not on the prescriptions.

The great middle of the country is, and should be, angry about the economy. Inflation has eroded their purchasing power. Housing, higher education and health care are at or near their lows in affordability. To the next president: You won because Americans believe you know how to improve their lives. This belief is powerful. It should ground your policies and can drive progress.

Start Day 1 with America’s strengths: energy, technology, capital and talent. There is no faster way to deliver benefits across the board than lower energy prices. The forced scarcity of the Green New Deal, one of the great policy blunders in modern history, should be replaced with an “all of the above” approach to domestic energy supply. The benefits will be felt at the pump, in heating bills, at the grocery checkout and in every small business.

Technological advancement has similar broad effects — driving down costs and increasing choices for consumers. Think about the shelves of Walmart and Costco. Consumers have lower prices and more choice than we dreamed possible. Smartphones have shifted power to consumers. Continuing to win the global technology race will benefit every American in ways we know and ones we cannot imagine. Falling behind — as Europe has — will disproportionately harm our middle class.

Our wins in energy production and technology can be traced to our commitment to capital investment and human talent. Do not adopt tax policies that will reduce investment. Increasing taxation on capital gains or pursuing taxation on unrealized gains — a form of wealth tax — will stifle it. You should change our visa policy for those who earn advanced degrees in science and engineering from American universities. Sending these people packing after we spend millions educating them is absurd, particularly when millions without visas have been welcomed. Do not let this powerful change get bogged down in the disaster of our immigration policy.

On the runaway costs of housing, higher education and health care, level with the American people. Poor government — in both policy and practice — is the problem. We subsidize housing demand at the federal level but restrict supply at the local level through zoning, permitting and a host of other restrictions. We do the same in higher education, particularly at our elite universities. In health care, like higher education, there is no transparency and no market discipline. The American people are smart. They understand the high costs of poor policy choices. Show you’re going to fight for them in these areas critical to opportunity.

Housing Policy

Times Opinion: Gary, Jay, you said the housing crisis stemmed from poor policy. Tell us about your preferred solution.

Clayton and Cohn: It starts with recognizing that housing prices have been driven out of reach by conflicting government policies. Home prices increased by over 35 percent from January 2021 through July 2024. We stimulate housing demand at the federal level​ through many channels — our ​tax code (mortgage interest deductions),​ financial market intervention (through Fannie Mae and Freddie Mac), and countless programs designed to help buyers (including from the Departments of Housing and Urban Development and Veterans Affairs). At the same time, we constrain supply at the federal, state and local level through restrictions that go beyond safety​ and density considerat​ions, often by empowering interest groups with a wide range of non-housing or even anti-housing objectives.​

Not only do these factors​ drive up the prices of existing homes, they create opportunities for meddling​. The time and cost to build new homes vary greatly among areas, even after​ taking into account the cost of labor and services. One reason is that governments and private interests use high demand for housing to push other agendas, such as environmental groups that use expansive definitions of wetlands to block development. These actions, be they selfish or laudable, keep prices elevated​, and the cycle repeats.

As an immediate step, we propose any new federal subsidies be available only in municipalities that have agreed to increase the supply of single- and multifamily homes by more than 10 percent over 10 years. Municipalities that meet those goals would receive a ​meaningful federal grant. As a complement, federal regulators would speed the resolution of environmental and other regulatory hurdles. Next, the heads of key federal agencies would present recommendations for addressing restrictions on housing supply. Our suggestion on energy generation and distribution also would increase the affordability of housing, through lower costs of materials and construction.

Times Opinion: Betsey, Justin: I’m guessing there’s some room for agreement here.

Stevenson and Wolfers: We all appear to agree the housing market has two core problems. Unfortunately they are pretty broad: housing demand and housing supply.

The supply problem can be broken down into two parts: a temporary problem related to the pandemic and a longer-term problem related to regulation. Some short-term affordability issues will dissipate as the Federal Reserve brings down interest rates, and it would be foolish to design too much policy around temporary problems. (That said, we would encourage policymakers to help people understand how they can effectively sell their low-interest-rate mortgage along with their house.)

The longer-run problem is more pressing, and that’s where we and our opponents part ways. In many cities, we’re barely building any housing, and the stuff we’re building isn’t affordable. The good news is that most Americans agree that we need to build more. The bad news is that this enthusiasm extends only to other neighborhoods. Folks who live in nice places are quick to lodge their objections to change, particularly change that increases density. The result is a striking asymmetry: Local governments hear from the critics of progress but not the beneficiaries, which explains why so many local regulations limit new construction.

By this telling, housing policy rests with the wrong level of government. It’s a national problem demanding national solutions. That’s tricky because the federal government has no direct role in local planning decisions. And it’s why Jay and Gary suggest the federal government create incentives for local communities. We’ll put aside the details on how to do this, and agree they’ve got the right idea.

What they miss is that our housing problem is only partly about the quantity of housing. It’s also about the type. We’re building large suburban houses instead of starter homes, in part because our tax code distorts housing demand.

This mortgage interest deduction is effectively a housing subsidy, but mostly for higher-income people with higher tax rates. That’s because the benefit is larger when your tax rate is higher. And because the subsidy grows with the size of your mortgage, you get a bigger subsidy if you buy a more expensive house.

Compare an upper-middle-class family deducting interest on the first $750,000 they pay for a home and a middle-class family with a $150,000 mortgage. Assuming some basic facts about their taxes, the wealthier family could get a benefit of $15,000 a year, compared with $900 per year for the less well-off homeowners. Lower income families get even less. If you thought about who needs a housing subsidy, you might do the exact opposite!

Gary deserves a lot of credit for helping to rein in these subsidies when the Trump White House and Congress capped the mortgage interest deduction at $750,000. We hope he agrees we could do more. Let’s not offer this subsidy for vacation homes. To be fair, we should make it a “refundable tax credit,” which is a wonkish way of saying that each home buyer should get the same help.

And let’s go a step further: We’ve inherited a housing stock that reflects decades of subsidies to build bigger houses. We can redress this imbalance by expanding the low-income-housing tax credit and providing down-payment assistance to middle-income families, as Kamala Harris has proposed. A good housing policy would increase and reshape supply. On both fronts, the United States is getting it wrong.

Times Opinion : Betsy and Justin: Both the Trump and Biden/Harris administrations have, to varying degrees, relied on tariffs as a policy tool. Are they right?

Stevenson and Wolfers: The biggest lie about tariffs is that they’re a tax on other countries. When Home Depot imports a washing machine, it’s Home Depot that writes a check to the U.S. government. That doesn’t necessarily mean Home Depot ends up paying, because it might pass along the cost to consumers or ask its overseas suppliers for a better deal. Economists have studied who bears the burden. Spoiler: It’s often American consumers.

The most closely studied tariffs of the Trump era are the washing machines tariffs applied in early 2018. Whirlpool complained it couldn’t compete against rivals that enjoyed government subsidies. Whirlpool’s lobbyists met a receptive Trump administration, which raised the average tariff on washers by roughly nine percentage points. Within a couple of months, the price Americans paid for washing machines rose by — you guessed it — roughly the same amount. Tariffs fed through into higher prices for American consumers, roughly dollar for dollar.

If the point of these tariffs was to make domestic producers more competitive, they failed. A study published in The American Economic Review shows that Whirlpool simply raised prices in lock step with its rivals. Even worse, major brands also took advantage of the confusion to raise the price of dryers — where there was no tariff increase! The price of other appliances remained roughly unchanged.

Donald Trump has said he will use tariff revenue to fund the federal government. That’s going to be hard. With the washing-machine tariffs, American consumers paid about $1.5 billion more per year and the federal government collected a measly $82 million in revenue. Tariffs are a costly way to raise revenue. They also hit lower-income people harder.

In one way, the tariffs sort of worked. The major laundry manufacturers report they helped create around 1,800 jobs. A quick bit of division reveals these gains came at a cost of about $800,000 per job. We have better ways to support American workers.

At least this story has a happy ending. The Great Washing Machine Experiment ended when these tariffs expired in February 2023, and quickly the price of washers fell back to typical levels . Five years later, America’s domestic washing machine industry had remarkably little to show for the billions that consumers spent supporting it.

One response we’ve heard to this story is: “If Trump’s tariffs were so bad, why did President Biden continue many of them?” We think this illustrates the problem. Tariffs create their own political constituencies. Those 1,800 workers will fight to save their jobs, no matter the price. Whirlpool learned the value of its Washington lobbying division. You can bet manufacturing executives are hatching plans for how to curry favor with a second Trump White House.

We tell this story so that Gary and Jay don’t have to. It’s surely a painful one for Gary, who tried to persuade his fellow members of the Trump economic team to take his concerns about tariffs seriously. So Jay, Gary, this is the story of one tariff. What about the folly of the across-the-board tariffs Mr. Trump is suggesting?

Clayton and Cohn: The story of tariffs on washing machines is a good one. But the realities of our markets, including their intersections with social policy and foreign relations, are more complex.

In this environment, tariffs, subsidies, taxes and regulations play an increasing role in guiding the economy. And tariffs can be powerful. They can be instituted quickly on a targeted or broad basis. What’s more, the size of the American economy and the power of the American consumer make U.S.-imposed tariffs more powerful than tariffs imposed by others. Every president should be ready to impose, modify or remove them.

The United States competes with countries where manufacturers are owned by the government and there are few regulations to protect workers. As a result, the cost of capital is close to zero and labor is not much higher. Even where the United States has a substantial technology or skills advantage, our competitors can produce products well below what it would cost here. Tariffs can level the playing field.

Some cases, such as national security, are obvious. The United States cannot be reliant on foreign manufacturers for military equipment, hospital supplies, communications technology and data processing, including artificial intelligence.

With the rise of China and India, and increased support by our trading partners for domestic champions, there are more cases where tariffs make sense. Take electric cars. Since 2015, the average price of electric cars has risen in Europe and the United States while it has more than halved in China. We must not allow highly subsidized Chinese manufacturing to displace private American production in an industry of the future, particularly one that supports high-skill, high-paying jobs. Tariffs on Chinese EVs are a no-brainer. Our next president should examine all major industries to determine where tariffs (or the threat of tariffs) are in the best interests of U.S. workers and consumers, understanding that the optimal mix of tariffs, subsidies, taxes and regulation is changing faster than ever.

National Debt

Times Opinion: Looming over these questions are America’s persistent chronic deficits and debt. How worried should we be? And what’s the fix?

Clayton and Cohn: Yes, our total national debt, which is approximately $35 trillion, or about 124 percent of gross domestic product, and our annual deficit, now nearly $2 trillion, or 7 percent of G.D.P., are problems. They are, by a wide margin, nearly the largest of our lifetime as a percentage of G.D.P. — the most relevant measure. Interest payments on the debt of approximately $1 trillion this year amounts to more than 12 percent of federal spending, up from under 8 percent in 2017.

Economists disagree whether, when and to what extent this will harm the economy. One area where most agree is that we cannot afford another bout of spending as we had between the March 2020 response to Covid through the August 2022 — clearly misnamed — Inflation Reduction Act. Additional spending at that level would call into question our ability to pay our debts. While we’re all hoping for an economic “soft landing” we should recognize we’re coming into a different airport, where the air is thinner, the runway shorter and fuel more expensive.

In contrast to the private sector, which is largely well positioned, our public sector, including our highly regulated health care system, is a different story. Our government’s financial position is far worse than it was four years ago. Many of our core government functions are operated in a breathtakingly inefficient manner, despite record spending.

So, how do we improve? Not through higher tax rates on corporations or capital investment. A significant increase in tax rates in those areas will lower federal tax revenues over time. U.S. businesses will be less competitive, employment will suffer, investment will move abroad and asset values will be constrained. To increase revenue, we need to expand our economy while keeping inflation in check, and the most effective way to do this is through productivity gains. As we mentioned earlier, we should drive productivity principally by embracing technology, low-cost energy, capital investment and human talent. We need to bring down the costs of financing our debt as well as the costs of making good on our Medicare and Social Security obligations.

Bringing down debt costs is best accomplished by putting inflation back where it was pre-Covid. The average during the Trump administration was 1.9 percent. Here, the measures we discussed to increase supply, including addressing restrictions on housing, are the best prescription. As inflation subsides and productivity gains take hold, rates will come down. Of course, failing to address supply in housing and energy will have the opposite effect.

Then there is Medicare and Social Security, which represent 14 percent and 21 percent of federal spending. It’s time to get beyond the kneejerk “you can’t touch entitlements” reaction, which means good ideas and people fall prey to those who trade on fear and envy. Costs can be reduced without touching benefits for anyone over 25. And those 25 and under, if we act now, will get a better deal.

The last time Congress adjusted Social Security eligibility was 41 years ago, when the full retirement age was gradually raised to 67 from 65. Life expectancy has increased nearly four years since then to 78. That is great news, and also means we must address this issue again. For those born in 2000, who are turning 24 years old, we should move the full retirement age to 69. For each birth year after 2000, we should increase the full retirement age by one month a year, to a maximum of 72, which will effect only people born in 2036 and later.

In addition, for those ages 40 and under, we should introduce a “superannuation” fund, following the Australian model. Employees would be required to invest payroll deductions of 2 percent to 4 percent in low-cost, diversified investment portfolios overseen by a proven group of volunteer financial professionals who serve set terms. These accounts would travel with employees when they change jobs, and when the employees reach age 65, they would be eligible to withdraw their funds.

If we had done this in 1983 when we last looked at Social Security, a financially secure retirement would no longer be a concern for most Americans. Just imagine if over the past 40 years we had taken the surplus in Social Security and invested it in a diversified pension-like portfolio, with an estimated 8 percent return, instead of short-term Treasuries or cash that has earned almost nothing.

Times Opinion: Betsey, Justin: Would you look to entitlement spending to tackle the deficit and debt?

Stevenson and Wolfers: When you’re assessing deficits, why is as important of a question as how much . Borrowing for a long weekend in Vegas is probably a bad idea, but borrowing to build a home, get an education, or start a business is likely a good one. The same principles hold with government spending.

If we borrow $1 today and it gets us $10 in 20 years (roughly the estimated return of spending on early childhood education), that is a good deal. The U.S. government is uniquely able to borrow at a low cost, so the case against government debt is weaker than the case against personal debt. We’ve used this throughout our history to fund investments in human and physical capital that have fueled rising national prosperity.

Instead, we need to worry about the fiscal equivalent of a weekend in Vegas. For generations, Republicans have lowered tax rates and gutted government revenue by promising the cuts would pay for themselves, arguing that the wealthy would use the extra money to make great investments. From the Reagan through Trump administrations, Republican presidents have largely busted the budget with tax cuts that didn’t pay for themselves, leaving their Democratic successors to clean up the mess.

If you know what comes next, we get it. Mr. Trump is running on a grab bag of tax cuts accompanied by evidence-free claims that they’ll stimulate enough growth to pay for themselves. ( Independent scorekeepers estimate that his program might, yet again, double the deficit.)

This pattern — of Republicans creating fiscal chaos for their successors to deal with — is not a coincidence. It’s a strategy. For generations, Republicans have spent freely while shrinking the tax base. They’ve promised voters they can have the goods and services but without paying for them. This program of fiscal vandalism ignores one of Milton Friedman’s key insights: To spend is to tax. A program such as Mr. Trump’s that increases spending while cutting revenue simply shifts the tax burden to your old age, or to the next generation.

So the real fiscal question is: What should those future taxes look like? We have some ideas.

Let’s reverse the decades-long trend of tweaking the tax code to the benefit of the rich. There’s a kernel of truth to the idea that we need to unleash the energy of those whose entrepreneurial spirit can be suffocated by the tax code. But the wealthiest Americans today have enough to fund their good ideas. The deepest well of untapped entrepreneurial zeal lies among those who lack financing, are struggling with student-loan debts and who don’t have family wealth or connections. Perhaps it’s no coincidence that declining inequality and a moratorium on student-loan payments during the Biden years coincided with the greatest burst of entrepreneurial endeavor in our history.

Fortunately we can raise revenue without raising tax rates. Our tax code reflects decades of special deals, carve outs and loopholes, which collectively let corporations and the wealthy escape their obligations. In the 2023 debt deal, congressional Republicans cut funding for the I.R.S., effectively defunding the tax police. Fully funding the I.R.S. would raise revenue, help stabilize deficits and return a sense of fairness.

It’s also a truism of tax policy that how you help determines whom you help. You might notice that nearly every major Trump policy is a tax break, rather than direct government assistance. Yes, it keeps anti-tax zealots happy. But it hides a slant toward helping the richest Americans. Eliminating the tax on Social Security primarily helps those who have high income from other sources and risks benefit cuts for everyone. The only tax that Mr. Trump proposes raising is the tax on imports (otherwise known as a tariff), which will hit lower- and middle-income families. The Trump program may well bring in less revenue by cutting taxes on the wealthy and corporations, while also raising the burden for 95 percent of Americans .

America’s growing debt is a challenge that requires thoughtful, long-term solutions about how to fairly and efficiently raise more revenue. Instituting the global minimum tax , joining the rest of the world in taxing carbon and enforcing a fair tax code would be good steps. It should not involve brinkmanship about whether we are going to pay our debt. The last thing we need is for borrowing costs to rise as the rest of the world wakes up to the possibility that the full faith and credit of the United States may not be as reliable as it once was.

What’s Missing?

Times Opinion: We hit many of the high points. What did we leave out?

Stevenson and Wolfers: Let’s talk about the elephant in the room: This isn’t an ordinary election, and Mr. Trump isn’t an ordinary candidate. He refuses to commit to accepting the outcome of the race and refuses to accept the results of the last election. Jan. 6 wasn’t “ a loving crowd ,” as he put it — it was an attempted coup. If Mr. Trump and his enablers had succeeded, they would have overturned the popular will and ended our more than 200-year experiment in democracy.

This isn’t just a moral, legal or political issue. The economic consequences dwarf any other issue we’ve debated.

Let’s back up to provide some context. Most economic commentary focuses on the short-term changes in metrics such as unemployment or inflation. Read closely and you’ll realize that even the most spirited debates involve relatively small stakes.

Look across countries, and you’ll see the true risks. Consider Argentina, once a stable conservative democracy — like the United States — and also one of the world’s richest nations. Over the past century, the United States stuck with democracy, the rule of law and a stable economic system, while Argentina’s democracy broke down, its economic institutions failed, it cut off imports and racked up unsustainable deficits. The consequences were huge: Today, the average American enjoys an annual income that is roughly 200 percent greater than the average Argentine’s.

This isn’t just the story of Argentina. The richest one-fifth of all countries are around 30 times richer than the poorest fifth. When economists ask why, they’ve found that stories about geography, culture or natural resources aren’t sufficient. What matters is the quality of institutions. Last week the Nobel Prize in economics was awarded to three American immigrants for showing just that. Countries with “ inclusive institutions ” — rules that ensure everyone has the opportunity and incentive to help to grow the pie — enjoyed tremendous growth in incomes. Those with “ extractive institutions ” — that allow a small group to enrich themselves at the expense of the broader population — have stagnated.

Let’s bring this back to the election. The United States isn’t Argentina, but a few decades ago, Argentina wasn’t, either. These are the stakes. Any possibility that this election makes us a bit more like Argentina is, in quantitative terms, the most important economic issue.

And so America’s voters face a striking asymmetry. If we stick with our economic fundamentals — democracy, the rule of law and inclusive institutions — we can expect our prosperity to continue. Threatening these pillars risks our economic future. This asymmetry highlights the wisdom of the sort of small-c conservatism that historically animated the Republican Party. That earlier generation cherished the economic and political institutions that yielded peace, stability and prosperity. Our economic structure is imperfect, to be sure — and this is why people are angry — but it has also generated the highest material standard of living of any large country at any time in human history.

In this upside-down moment in American politics, the strongest economic argument in favor of Kamala Harris is that she is the true conservative in the race, offering the best chance of continuity with America’s great democratic traditions.

Times Opinion: Gary, Jay: Do you see the choice in similarly existential terms?

Clayton and Cohn: No, we are not in danger of becoming Argentina with a second Trump administration. We are, to be sure, rooting for Argentina’s president, Javier Milei, to reverse decades of corrosive, government-enabled corruption and waste. We should be more concerned about becoming Europe with a Harris victory. Our so-called progressives have zealously pushed European-style economic and social policies with disdain for those who question their wisdom. The facts on the ground provide a large dose of reality.

America and the European Union are comparable in population, education and access to resources. So why between 2010 and 2023 did the cumulative growth rate of G.D.P. reach 34 percent in the United States, compared with 21 percent for the E.U.? Over the same period, American labor productivity grew at 22 percent, while it was an anemic 5 percent in Europe.

The first reason we’ve discussed: investment in technology and energy through vibrant capital markets and rational regulation. Don’t just take our word. Mario Draghi’s sobering report to the European Commission spells out many of the E.U.’s shortcomings. Public spending, taxation and regulation have favored the entrenched and politically favored, and the European economy has ossified.

The Ukraine war further revealed how fortunate we are — and, more acutely, how lucky the Europeans are — that America resisted the European temptation to protect the public from technology-driven progress. European environmental policy turned a blind eye to the importance of energy to their security. Today, American natural-gas exports are helping keep the European economy afloat, and American satellite and drone technology has helped Ukrainians hold Russian forces at bay.

The second driver is the performance of our public sector. Betsey and Justin give this a nod, but it deserves greater focus. There are three areas where, following European practice, our government is failing the American people.

Accountability Across the government, success is often measured by inputs, usually money spent or fines levied. But we should care more about outcomes. In primary education, we debate spending per student and de-emphasize proficiency scores in reading and mathematics. Similarly, the cost of a college education has skyrocketed, but data on resulting employment and wages is insufficient. This has saddled a large group of our citizenry with poor employment prospects and debilitating debts.

In energy, we have committed trillions to a green transition. Whether that money is well spent will depend in large part on the end cost to the consumer. We need to consider permitting, storage, refining, transportation and other challenging issues. The resulting waste is vast and, if demand increases as expected, could be in the trillions.

Technology The I.R.S. conducts a core function of government. It touches just about every American and, rightfully and regrettably, few are satisfied. It is a testament to our collective belief in supporting our country that our tax compliance is world leading despite obvious failings. The I.R.S. infrastructure is outdated. Many processes are still done by hand using paper. The drag on our economy, including the costs to individuals and businesses in compliance efforts, is staggering. But we do not need 85,000 more I.R.S. employees. We should invest in a technology upgrade, including A.I.

Military spending suffers from a similar failure. We should be debating whether we need new aircraft carriers (around $13 billion each) or better drones (where the 2023 budget was about $2.6 billion). Remember that the Biden administration brokered a resolution of an East Coast port strike without addressing the union’s longtime block on new technology, even though we don’t have a port in the world’s top 50.

The public sector Here is where Europe risks becoming Argentina and where we risk becoming Europe. Too many government jobs, including those proposed 85,000 I.R.S. employees, are dependent on performing inefficient and obsolete functions. Every American should be asking whether our failures here go beyond negligence and bureaucratic ineptitude. Is there a corrosive political bargain? Are 85,000 new I.R.S. employees in fact 85,000 more voters for big, inefficient, incumbent government?

Every day, we are grateful that we live in a country where we can ask these questions of our government and push for change. After a century, President Milei is asking them for the benefit of his country. A Trump administration will ask them. And we should not wait a century to do it.

Jay Clayton was the chairman of the Securities and Exchange Commission under President Donald Trump from 2017 to 2020. Gary D. Cohn was Mr. Trump’s top White House economics adviser from 2017 to 2018. Betsey Stevenson and Justin Wolfers are professors of economics and public policy at the University of Michigan. They co-host the “Think Like an Economist” podcast. Ms. Stevenson was an Obama administration economics adviser.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

Follow the New York Times Opinion section on Facebook , Instagram , TikTok , WhatsApp , X and Threads .