2026 SACE Economics exam: What to learn from last year's mistakes

SACE Economics is on Tuesday 10 November at 1:30 pm.

I've gone through the 2025 examiner advice. The recurring issue was getting the general idea right but leaving out the economic explanation, diagram detail or evidence that made the answer complete.

Here are four things worth tightening up.

1. Question 1(b): Explain the elasticity number

Where students went wrong: Some identified supply as elastic without explaining what the coefficient of 1.2 meant.

What they should have done: Explain that a 1% change in price produces a 1.2% change in quantity supplied in the same direction, other things equal. Connect any proposed determinant to producers' ability to adjust output.

My practice check: whenever you calculate an elasticity, write a sentence interpreting it in the market from the question. A calculation and an interpretation are separate skills.

2. Question 1(c): A policy diagram needs the policy

Where students went wrong: The advice highlights incomplete price-floor and subsidy diagrams, including missing quantities and the subsidy wedge.

What they should have done: For a binding floor, show it above equilibrium and identify quantity demanded, quantity supplied and the surplus. For a subsidy, distinguish the buyer's price from the amount the producer receives.

My revision drill: explain your diagram without pointing. If you cannot name what each price or quantity represents, the labels need work. Do not confuse how much firms want to supply with how much consumers will buy.

3. Question 1(e): External costs affect third parties

Where students went wrong: Some confused the marginal social and private cost curves or did not identify the socially efficient quantity correctly.

What they should have done: Connect production to a cost borne outside the transaction, then make the diagram match.

An original practice example: factory emissions damage nearby residents' gardens. Explain the harm to residents, not just the factory's fuel bill. Social marginal cost includes that external cost. Use the relevant benefit curve to identify efficient output, making your assumptions clear.

4. Question 2(a): Use the market evidence

Where students went wrong: The report highlights the four largest chocolate firms' combined 90% market share. A generic definition missed that application. The follow-up required considering small or new firms' barriers alongside benefits.

What they should have done: Link concentration to market structure, then assess the position of a smaller entrant.

My practice tip: use a two-column plan for evaluative questions. Put the strongest supporting argument on one side and the strongest limitation on the other. Finish with a judgement that depends on the evidence. “There are advantages and disadvantages” does not explain which matters more or under what conditions.

Before the exam, practise one diagram-heavy question and one evaluative paragraph under time pressure. Mark the explanations as carefully as the labels.

Source: 2025 SACE Economics examiner advice. The revision drills and factory example are my own.

Sorry guys, shameless plug, I gotta do this. I'm the founder of ATARMAXXING, so take a look at the SACE Economics practice exams with answer guides if you want more practice. You can preview the Economics pack before buying. Try a paper before opening the guide, then rewrite the explanations where you left marks behind.

Discuss this SACE Economics exam breakdown on the subject board.