More Tips on Answering Data Question

Here are more tips for you....

My students (many if not all) will normally find that doing a data-like question can be very challenging. However, if they knew, data-like questions are one of the easiest, straight-forward kind of questions. Why?

1. You are given an article or a data to assist you in answering your questions.
2.

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When Mom Plans to Quit Job

Argh...!! It's Monday and I have to go to work. It's even worse when it's raining in the morning. Just like today. I just imagine if I do not have to go to work and working at a time given to me. What a bliss. I am working on it.

If I quit, will I enjoy staying at home? Will routine work at home make me bored to death? Will I be able to shop like I used to? Well, I may enjoy staying at home and I enjoy doing the housework. But to not having money like I used to can be a big problem to me. Unless I have a job that can really gives me some good money and at the same time enjoy my time at home. Yeaah...the internet business. Should venture this.

Working on it....we'll see how I do......

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What the Education System Did Not Teach You

The thought of going through 11 years of schooling can mean heaven for some children but hell for some others. Why is this so? For those who have been exposed with the right way of learning since early childhood school means fun and adventurous to them. However, for those who did not have the chance for proper learning will face difficulties along the way. They may find that learning is just a torture. Year by year would go with a drag.

Now my question is.....how could we get all children to love schooling or shall I put it this way..how could we get all children to love knowledge? Being in education line for 20 years myself, I do find out that knowledge should be the focus of learning. That is what learning all about. To acquire knowledge no matter in whichever way. Learning should be made fun and with added values.

I just do not see a point that the children have to learn so many in one day. Could they absorb many things in a day? The conventional classroom learning should be changed into a more dynamic approach. It's not about teachers and the blackboard anymore. It's about developing our children's mind with the curiousity to know, the urge to solve problem, the focus to what they want to be, the interest that they should pursue, the survival skills that they must acquire, the creativity that they could expand, the unknown that they should explore.

Children should be approached in a better way. They deserve our respect. Let them want to learn. I must say the most important part of teaching is at the earliest stage of schooling, which is the pre-school level where children begin to see school as something big. They do have expectations on how schools should be. I've got a 5-year old daughter who was anxious and excited to go to school having heard about how fun schooling should be.

However, she was just so shocked that the real life of schooling was not as fun as she thought. She  was pinched by a friend that made her cry so loudly. She saw a boy being scolded because of being naughty. She had to hold tight her school bag  every time a girl came to her to look what's inside. At the end, she told me that she did not want to go to school. She had missed her classes for 3 days because I allowed her to do so. I had to let her know that school is not that bad. I had to teach her that the focus is about learning to know. Not about what happens around it. I tried to create the positive environment around her so that she would be happy to go to school but deep down I know that it is part of growing up that she has to face. It is not all roses. It is not a perfect world.

If only the education system could be changed to focus more on the children's development in enhancing their potential rather than on just 'zombie-like' documented approach, I have the feeling that every child in this country would just love learning that they don't realize how much knowledge they have acquired. Our ancestors did not have 11 years of schooling. They survived. Some self-made millionaires did not go through the 11 years of schooling. They became rich anyway. 

I personally feel that the children's potential should be identified from the earlier stage so that they could maximize their potential. The curriculum should be developed by focusing on the skills required for survival. What  are they? Communication skills, analytical skills, critical thinking skills, problem-solving skills, language skills, creative skills, sales and marketing skills, reading and writing skills, and a few more that could be explored. Of course, documentation-wise, learning objectives have been set to develop all these skills but what about the implementation? Is it effective? 

Children must love new knowledge then only they could be independent. Then only they could become true scholars. We must find the right way to make them love knowledge.

Furthermore, being a person true to her religion, I do believe that the children must know their religion well. Being a Moslem, I do feel that at the end it is the prayers that we teach our kids that matter the most. At the end, what  they would become depends on the prayers that they have recited when they were small. God listens......

At the end we must go back to the origin we came from.

Just a thought.......

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What determines the changes in the terms of trade?

Salam and Hi,

I'm back. Just a little bit concerned about your understanding of the concept 'terms of trade'.

(Reference: Hashim Ali)
Fundamentally, you can define the terms of trade for a country as the rate at which a country exchanges its exports for imports.
Changes of ToT can be measured by the average prices of exports and the average prices of imports.
It can also be defined as the ratio of export prices to import prices.

So, if the country's export price is cheap relative to its imports, then more goods would have to be exported by the country in order to purchase a given quantity of import.
Terms of trade is said to worsen or become unfavourable.

Conversely, if the export price increases relative to its import price, terms of trade is said to have improved because the country would be able to purchase a given quantity of import with a smaller quantity of export.

Here's a little test for you.
For the following state whether changes will bring about a favourable or unfavourable terms of trade.

Note: Px --> price of exports; Pm --> price of import.

1. Px increases while Pm decreases.
2. Increases in Px are greater than increases in Pm.
3. The increase in Px is less than the increase in Pm.
4. Px remains constant while Pm decreases.
5. Px increases while Pm remains constant.
6. Px remains constant while Pm increases.
7. Px decreases while Pm increases.
8. Terms of trade = 110
9. Terms of trade = 98
10. Terms of trade = 100

OK...let's see the answers:

1. favourable
2. favourable
3. unfavourable
4. favourable
5. favourable
6. unfavourable
7. unfavourable
8. favourable
9. unfavourable
10. balanced

What's your score?

Now, how do we measure the terms of trade? Yes, in the theory of comparative advantage the terms of trade shows the exchange of goods with another good in terms of unit. By right, we measure it based on the following formula:

Price index or Average price of exports    x 100
Price index or Average price of imports

Example:

Given:

Year           X Price Index         M Price Index           Terms of trade

2006           100                              100                             100
2007           100                                90                             111.1
2008           110                                90                             122
2009             80                              120                               66
2010           110                              115                             95.6

Analysis:

1. When terms of trade is greater than 100 --> favourable
2. When terms of trade is less than 100 --> unfavourable
3. When terms of trade is equal to 100 --> balanced terms of trade

WHAT DETERMINES THE CHANGES IN THE TERMS OF TRADE OF A COUNTRY, THEN?

The fundamental factors for these changes  are the changes in the demand and supply conditions which determine the price of both exports and import.

1. increase in demand for imports causes increase in the price of imports thus leading to unfavourable terms
    of trade.
2. increase in the supply of imports causes the price of imports to decrease thus leading to favourable terms
    of trade.
3. increase in the demand for exports causes increase in the price of exports thus leading to favourable terms
    of trade.
4. increase in the supply of exports causes decrease in the price of exports thus leading to unfavourable terms
    of trade.

So, what are the factors that cause demand and supply to change?

Changes in demand conditions (can be for both exports and imports), ceteris paribus

1. Changes in population

    This will result in greater demand for food. Price of imported food will increase and will lead to
    unfavourable terms of trade. The exporting countries will then have favourable terms of trade.

2. Outbreak of wars
 
    Increase war in some countries like in the middle eastern countries will cause increase demand for weapons and food.  Price of food and weapons will become much higher. The importing countries will face unfavourable terms of trade while the exporting countries will experience favourable terms of trade.

3. Changes in tastes and preferences

   Increase in demand for manufactured goods from other countries will lead to increase in price of imported manufactured goods leading to an unfavourable terms of trade for the importing countries and favourable terms of trade for the exporting countries.

4. Important buyer withholds demand

   This will lead to unfavourable terms of trade for the exporting countries as they would have stockpiles of goods (surplus) causing the price to fall. Exporting countries will face unfavourable terms of trade then.

Changes in supply conditions, ceteris paribus

1. Research and Development

   This factor will lead to higher productivity and supply will increase leading to a fall in price. Terms of trade for the countries that supply the goods will face unfavourable terms of trade (as price of their exports gets lower).

2. Outbreak of wars

    This will cause a fall in the production of goods in the countries and lead to an increase in price. Export will become more expensive due to the shortage. Terms of trade will be favourable for the exporting countries.

3. Policy of self-sufficiency (autarky)

    This will lead to increase in supply for all products in the country leading to a price fall thus making terms of trade unfavourable.

IMPORTANT NOTE:

The results of these changes in terms of trade depend on how elastic or inelastic is the demand for exports or imports.
The impact of favourable terms of trade may not be positive all the way. Consider the following explanation:

If terms of trade is favourable:

1. Price of exports is relatively higher than the price of imports.
2. Exports will become more expensive than imports.
3. If the exports are inelastic relative to imports --> improvement in balance of trade. Why?
    The importing countries will still buy your exports --> increase in export revenue.
4. If the imports are inelastic relative to exports --> improvement in balance of trade. Why?
    The importing countries will reduce their spending on imports as price gets cheaper.
5. If exports are elastic relative to imports --> worsening in balance of trade. Why?
    The importing countries will switch to other countries products which are cheaper than your country's
    products. Your export revenue will fall.
6. If imports are elastic relative to exports --> worsening in balance of trade. Why?
    Now that the imports are cheaper, there will be an increase spending in imports.

Can you try to see the impact of unfavourable terms of trade?

NOTE:

The country whose terms of trade have worsened may not be able to to buy the exports of the country whose terms of trade have improved. If a country is highly dependent on its foreign trade which is subjected to frequent fluctuations (swings in the terms of trade), it may cause economic instability.

In actual fact, the effect of a change in terms of trade on the real national income of a country would depend on the causes of the change. A rise in the country's export price does not necessarily mean it is better off because the rise in price may have been caused by a fall in output. Export earnings may be lower than before although demand for exports tend to be inelastic. If export earnings fall, less imports could be bought. They still can enjoy improvement in terms of trade though as exports can still be greater than imports only lower.

On the other hand, a fall in a country's export price may not necessarily mean a worsening of the country's situation. The fall in price may be due to an improvement in technology in the export industry which will enable her to produce more but at a lower cost of production. Thus, national income will increase and the country will be better off.

Real-life situations are much much more complex. When you deal with terms of trade, please also consider other factors like exchange rate changes caused by factors like changes in tastes and preferences, inflation rate, interest rates, economic growth, real income and expectations. You can choose whatever factors you find can cause terms of trade to change. As long as you are consistent with your explanation, you are still on the right track.

Happy revising!!!

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The Correct Way to Analyse Data for A Level Exam

Salam and Hi there,

My students normally would try to avoid data questions as much as possible. Although there might be a few who love to challenge themselves, data questions would probably be the last choice in their revision list.

Wake up, guys!! The best that ever happen with A Level Revision is to get together and do the Data Questions. Believe me. It's a lot of fun!! Why worry? It is not just about taking exam. It is about analyzing something which is real. Welcome to real world!!!

Ok, if it is so much fun how come I loathe doing it? How come I got stuck most of the time?

It's about the skills, guys. You need more analytical skills. I give you an analogy. How do you evaluate a person critically? Have you criticized anybody? I'm sure you have. You are basically (the word my students love the most) analyzing a data. Now let's take a numerical figure. How do you analyze numerical data? It's just a plus or a minus.

Let's say you are asked to analyze a trend of inflation. They might give you a chart asking you to summarize the trend. Well, you could analyze by looking at the overall trend and see whether it is increasing, decreasing, stable, erratic or anything else. Those are the common words used to analyze a trend.

What do you do if you are asked about trade position?
Answer: You can calculate the figure given in the data, either a surplus or a deficit. Spell it out. Put figure in your answer.

What do you do if you are asked about drawing a diagram?
Answer: Look for factors within the data itself. The answer must be there. Just draw the appropriate diagram.

Overall, data is not that hard. Believe me. Have fun doing them. You will see how much you love data questions after this.

Happy revising!!!

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Exam tips for A Level Economics

So, A Level Economics is just around the corner. How prepared are you?

Here are some of the tips that might be useful for you.

For Paper 1/Paper 3

1. Compile as many past-year papers as you can.
2. Start working on each paper.
3. Analyse how each question is structured.
4. Identify the keyword for each question.
5. Try to understand what the question is implying.
6. Evaluate each choice carefully.
7. Choose the best answer.

The confusion for this paper is normally the closeness of choices. If you have understood the concepts well, you should be acing this paper. This paper is highly conceptual and it is testing you on concept understanding.Get together among your friends and discuss the answers together. Make sure you have the answer scheme as a guideline.

Paper 2/Paper 4

These two papers consist of data question and essays.

1. Calculate the time accordingly. For example: Paper 2 is 90 minutes. You may want to spend 45 minutes for
    each section (45 minutes on data question and 45 minutes for essay). Of course this is only an average
    calculation. The real duration of time allocated does depend upon the difficulty of the questions.

2. Now that you have allocated the time, make sure you follow your plan. Choose your essay question
    carefully. Read all questions and pick the one that you think you could write the most (of course with good
    understanding of concepts). I recommend you only spend the most 5 minutes on choosing and planning
    your essay question.

3. For Data Question:

    Read and reread the information given. Spend the most 10 minutes for this activity. The rest of 35 minutes is for you to write your answers. Make sure you read the questions as well and identify which topic in your syllabus is covered in this question. The type of question can be a combination of 2 topics or more.

Please write your answer straight to the point but with some elaboration of course depending on the marks allocated for each question.
Some questions require numerical analysis. Please make sure you know how to identify this.
For example:
if the question ask for summarising a trend of inflation, you need to look at the whole chart and look at whether it is increasing or decreasing. You don't have to go by each year to explain a trend. It's overall.
Another example is about trade position. This is where you must identify through the data given. Some numerical value must be included in your answers.

4. For essay question

    This is the fun part of the exam. Writing the essay.

    i) Read the question and understand carefully.
   ii) Look for keywords or topics being discussed.
  iii) Plan your answer (should not take more than 5 minutes)
  iv) Whatever the essay question is, first explain the concepts through definition (this can be in your
       introduction)
  v) Organize your points carefully through good paragraphing.
 vi) Where diagrams are relevant, draw big enough diagram (estimation about 5 lines of normal fullscape
     paper). Explain and label the diagram thoroughly. Caution!! DO NOT USE DIAGRAMS AS
     ACCESSORIES. THEY NEED TO BE EXPLAINED THOROUGHLY.
vii) Whenever there is a discussion question, please write both sides of the stories.
     for example: You are asked to discuss whether inflation control is desirable.

     You need to mention about how inflation needs to be controlled. One reason maybe due to the degree of
     inflation. Hyperinflation is something that must be controlled. Therefore, it is desirable.
     However, if inflation is stable, government can focus on other problems like balance of payments, and
     unemployment maybe.

     Again, you need to understand what the question is asking. This could be done through preparation based
     on the past-year questions.

viii) Make sure you write your answer in a concise manner. Examples given should be well elaborated.
 ix) All points mentioned should be divided through different paragraphs. Identify each major point
      appropriately.
  x) Finally, conclusion must be written. This conclusion is to support your argument in your essay. Some essays do not require you to take side but some do. Identify the type of question that require either one of these.

OK. that's all for now. I will be writing again for more tips. GOOD LUCK to all of you in your coming exams!!!!

One last tip,

NO HANDPHONE TO THE EXAM HALL!!!
BRING YOUR EXAM SLIP!!!
DON'T BE LATE!!!
BRING ALL STATIONERIES RELEVANT!!!
SLEEP ENOUGH THE NIGHT BEFORE THE EXAM!!!
RELAX WHILE DOING THE EXAM!!!
START WITH A PRAYER AND CALM YOURSELF DOWN!!!
LISTEN TO INSTRUCTIONS CAREFULLY!!!
NEVER..NEVER MISINTERPRET THE QUESTIONS!!!

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