Welcome!

Are you studying for your Cambridge Economics? Then you’ve come to the right place! Not only will you find concepts explained in a way that you will understand, we will also give you tips and common mistakes that people make when answering questions.

 

How to make the most out of this site!

Its simple really. You are here because of these reasons

1. There is a specific topic you need sharpening up on - search it, check out the categories on the right, or go on the theory page
2. You are here to revise your course- check out the theory page, there is targeted infomation for your level!
3. You just want to find out what economics is about - have a read of everything
4. You need one-on-one help - online help or live tutoring is available in Auckland!
5. Want to find tips and tricks on the best way to answer questions? Check out the tips category which includes analysis on examiner reports!

Each post is divided into different levels and depths. Most basic on the top, the post will let you know when you no longer need to read further for your level. Of course, knowledge is power, why not learn a little more?

Examination Tips Part 2

All your hard work means nothing if you don't put what you know into paper properly. If you missed part 1 check it out here: Exam Tips 1

1. Create links
Create links with your question and other relevant topics. For example, if you are talking about inflation link it to other macro-economic factors such as balance of payments or the exchange rate. Show the examiner that your knowledge is not just limited to what you read from the textbook, analyze the question in light of its context.

That being said, make sure your answer actually answers the question and you don't go off and talk about another topic.

2. News events
As said above, show that you can do more than regurgitate what is in the textbook, be able to apply knowledge to situations. The current "economic meltdown" is prime for you! Use your knowledge of news events and show how you can apply your theory. Don't be afraid to use local news as well, that is okay! The examiners are not ignorant, they understand that you are doing an international examination and you can use what is happening in your own country. In fact, they encourage it.

3. Think before you ink!
Think about what you are going to write before you write it. Otherwise half-way through your answer you will realise you need to add things here and there and it gets messy. Sure the examiners can follow your stars and arrows, but why not just make it easy for them to give you marks? A planned answer shows! Do you know what shows even more though? An unplanned answer, the lack of coherency will not give the marker confidence in your ability.

4. Manipulate data
When given tables or graphs, don't just straight copy down data. Do some manipulation even things as simple as percentage changes (which you should know how to do by the way) will do. Just don't copy and paste.

Usually answers will involve some sort of data manipulation and most of the time it is basic arithmetic.

5. Have courage!
Have the courage to challenge statements and data. Do not fall into the trap of accepting everything you see, ask questions and do not be afraid to contradict what is being said.

An excellent demonstration of your knowledge is to be able to challenge the question. That being said, challenge within reason, be able to state your case clearly. Challenging data is not that drastic, it can be as simple as pointing out pitfalls in a certain indicator!



I know many of you have exams coming up now, I try my best to help you get those marks!

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Types of Businesses- Joint Stock Companies

What are joint stock companies?

Joint stock companies are owned by shareholders, there is usually a separation between ownership and management.

The company is divided up into many shares which are held by people or groups. They elect a board of directors who oversee the day to day running of the business, these people have a duty to protect the interests of the shareholders. The board of directors can also appoint others to look after the day to day running of the business as well as other employees.

Joint stock companies benefit from limited liability, this means that should the business fail the shareholders liability is only limited to the price they paid for the shares or has left to pay. e.g. if the shareholder bought 1 share at $10, and paid $8 for it, should the business fail the shareholder will only have to pay $2 for it (the remainder of his share).

In most countries there are two types of companies that issue stock.

1. Private limited company- which is owned by private individuals and the shares are not sold on the market
2. Public limited company- owned by individuals in the public, the shares can be bought and sold on the stock-exchange.
   

So what the benefits of joint stock companies?

1. limited liablity - see above
2. easier to raise finance as they can sell shares to raise capital, and they are usually larger so have more credibility (not always true), and they can also raise finance through debenture or bond issues
3. can take advantage of specialised knowledge of managers

Sounds perfect right? Again there are downfalls

1. they have to publish accounts yearly
2. they are more expensive to set up and have more requirements under the law
3. original owners can lose control of the business
4. ownership and management are separate and often conflict of interests may occur.

Pretty straight forward stuff, next time co-operatives!