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H2 Economics Mock Prelims · Demo Student · read-only sample

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Student

For CSQ (a)(ii) I said overseas manufacturing raises US export revenue. The marker said I reversed X and M — can you unpack that?

Cherlock

When US firms shift manufacturing overseas, Americans still buy those goods — but they are now imported. So US import expenditure (M) rises. Export revenue (X) is not what goes up here. Higher M with X unchanged worsens the balance of trade.

Student

Okay. And for (d), why is depreciation not the best alternative for the US even if it could help BOT in theory?

Cherlock

In theory a weaker dollar can raise net exports. But under the impossible trinity, with free capital flows and an independent interest-rate policy the US cannot also freely manage the exchange rate as its main BOT tool. The case points you toward supply-side / structural alternatives instead of leaning on depreciation.

Student

Essay 2 felt stronger than Essay 3. What should I fix first in 3(b)?

Cherlock

When the preamble flags uncertainty and instability, name concrete recent events (for example US–China trade tensions) and link each to a clear transmission mechanism into your AD/AS or trade story. Your diagrams are confident — the missing marks are usually specific case-driven mechanisms and sharper evaluation, not the sketches.

Student

So: keep X/M direction straight, avoid depreciation-as-best for the US, and pin Essay 3 eval to named shocks. Thanks.

Cherlock

That is the right shortlist. Essay 2’s comparative-advantage gradient and short-run-only protectionism points are already strong — protect those habits while tightening extract discipline on the CSQ.
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