Application
This skill requires you to apply your knowledge. It is no good knowing about a term or theory if you cannot apply it to a specific economic issue.
Such skills include:
Questions in exams testing these skills typically begin with command words such as:
| Apply | Use your knowledge to understand an issue | Use the concept of opportunity cost to explain the choices faced by government |
| Calculate | Produce an answer using mathematics | What is PED if prices fall from 50p to 40p? |
| Distinguish | Differentiate between ideas and concepts | Distinguish between normal and inferior goods |
| Explain | Make a concept or idea clear | Explain how a monopoly can earn abnormal profits |
| Why | present reasons for something | Why did the price of apples fall last year? |