The scenario deals with Karen’s work stress, but just mentioning her name in your answer does not mean you are demonstrating application
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One of the skills you will be examined on at both AS and A2 is your ability to apply your knowledge to an unfamiliar scenario. This is a very different skill from simply describing what you know. Sadly, students who have prepared well and revised hard sometimes ignore this important distinction.
There is a big difference between the following two AS exam questions:
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