Monday, September 10, 2007

What to use in an economic Essay

However, when I want to bring economic analyise into political filed, I still confuse that what is appropriate way to use "the economic arguement"? Is it theory in economic e.g. Human Capital Theory? Or data of country such as exchange rate, import/export data etc? What is exactly "the economic arguement" means? Thank you for your kindly answer.


When writing economic essays it is important to use the following items in answering the question.

1. Economic Theory. e.g. Wages are determined by MRP theory. MRP = MR*MPP. The theory also needs to be explained

2. Application to real World. We see the implication of MRP theory to explain why Lawyers get higher wages than street cleaners. - Lawyers can make a big difference to a firms profit and therefore have a high MPP.

3. Economic Data. For longer essays you may wish to back up the answer with data. E.g. average wage of lawyers is $89,000 a year. Average wage of street cleaners $16,000. For university essays / dissertations it is important to include footnotes for the source of your data.

4. Evaluation of data / theory. MRP can be used to determine wages. However, for many jobs in the service sector it is difficult to measure a workers productivity.

I would be wary of using political arguments for an economics essays. For example, if you have a question about fiscal policy. You will not get any marks for saying things like

  • Higher taxes will cause the government to be unpopularity.
  • This kind of political argument is not relevant in an economics essay.

See also:

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