Edexcel Economics KAAE?

I am a bit confused about how the edexcel papers are marked. What exactly is application? Is analysis just diagrams? Can some knowledge also be application at the same time?

appreciate anyone clearing this up for me :s

K - This is your knowledge mark. Could be an explicit definition of a concept or a just the identification of a factor/reason.e.g saying In any case it shows you understand what they are asking.
App - This is your application mark. It is different to knowledge because it requires outside information/data. For Section A & B you will most likely be given data (this may be in the form of an extract, diagram or table) and it is your job to clearly state how the extract/table/diagram supports your point. For section C (the 25 marker) there is likely to be limited/no data and so it is your job to read around an industry of your choice/a developing country of your choice so that you are able to bring data/knowledge to support your point.
Analysis - This is your analysis mark. Edexcel are looking for "chains of analysis" here but YES you can use diagrams as well. Let me explain this with an example. Imagine you have a question regarding how Monetary policy may be used to combat inflation. One point may be the increase of interest rates. Student A will not use chains and Student B will.
Student A: "By increasing interest rates there will be a fall in inflation"
Student B: "By increasing interest rates, this will rise the cost of repayment on variable rate mortgages, leading to a fall in effective disposable income which may cause the output gap to become negative leading to a possible fall in inflation."
Now I went a bit overkill on the example but its important that you use those terms such as "which means" & "this leads to". That is chains of analysis and Edexcel LOVE it.
Evaluation - This is probably the most important one. Evaluation will be expected for the 8, 10, 12, 15 and 25 marker with differing degrees of intensity. Just now with evaluation it is all about directing the examiner to your way of answering the question. This may be done through generic measures such as considering the magnitude of the proposal (e.g. whether or not the tax will be large enough to have the intended effect of reducing consumption.), Time lag and the long run vs short run. There may also be some more technical arguments which may merit a greater mark but this depends solely on the question.

Hope this helped!