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AS LEVEL: Economics Edexcel 2016 Unit 1 PREDICTIONS

Synonym

what do you reckon could possibly come up as the essay questions ?

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Reply 1

Fox Corner

Original post by Synonym

what do you reckon could possibly come up as the essay questions ?

Hi! I moved this to the Economics forum for you :smile:

Reply 2

Chrstina

Hi! What do you think about the essay questions

Reply 3

MadHannah23

My teacher thinks possibly market failure

Reply 4

Zdaus

My Teacher also said Market Failure

Reply 5

Bigbosshead

A question was as follows:A 20% rise in incomes brings a 25% in the bookings at hotels in Blackpool.

This means:

Hotels in Blackpool are inferior goods-
Hotels in Blackpool are a normal good
Hotels in Blackpool have income elastic demand
Hotels in Blackpool are a luxury product.

Surely the answer is part d.) as the income price elasticity of demand (responsiveness of the quantity demanded of the good or service following a change in real income) is >1?

BUMP

Original post by Bigbosshead

BUMP

you have to be more patient. Classifying goods as luxury is a bit subjective, if it is YED>1 I would go for demand being income elastic.

Reply 8

JMEisjames

Market Failure will defiently come up as otherwise there is very little to talk about

Reply 9

harryleavey

Original post by keynes24

you have to be more patient. Classifying goods as luxury is a bit subjective, if it is YED>1 I would go for demand being income elastic.

Technically any good with a positive YED, which is above 1, is considered a luxury good.
I think the last 2 choices are correct.

Reply 10

keynes24

Original post by harryleavey

Technically any good with a positive YED, which is above 1, is considered a luxury good.
I think the last 2 choices are correct.

it is subjective, the more accurate choice (in my view at least) is YED>1 elastic

Reply 11

kesheman

my teacher predicted that trade-able permits would come up, what has everyone else's teachers said??

Reply 12

harryleavey

Original post by kesheman

my teacher predicted that trade-able permits would come up, what has everyone else's teachers said??

My teachers predicted government failure.
Reason: "Edexcel examiners/question makers are mostly private school teachers - so heavily criticise the government and their intervention"
- Not my words, my teachers!

Reply 13

kesheman

Original post by harryleavey

My teachers predicted government failure.Reason: "Edexcel examiners/question makers are mostly private school teachers - so heavily criticise the government and their intervention"- Not my words, my teachers!

So what could be a potential market failure questions?
Jan09-uni fees, cig consumption
June09-housing, ricemarket
Jan10-oil prices, road congestion and building
June10-agriculture, carbon emission tradeable markets
jan11- sugar prices, NMW
June11- copper prices, NHS healthcare
Jan12- beef prices, house prices
June12-unis fees, cotton prices
Jan13- fish regulation, coal prices
June13-cocoa prices, heathrow expansion
June14-cig consumption, rtidal barrage production
June15-housing, crossrail proudction

these show just a rough idea of the case studies which came up in the previous years, which topic would be most likely to turn up again?

(edited 7 years ago)

Reply 14

harryleavey

Original post by kesheman

So what could be a potential market failure questions?
Jan09-uni fees, cig consumption
June09-housing, ricemarket
Jan10-oil prices, road congestion and building
June10-agriculture, carbon emission tradeable markets
jan11- sugar prices, NMW
June11- copper prices, NHS healthcare
Jan12- beef prices, house prices
June12-unis fees, cotton prices
Jan13- fish regulation, coal prices
June13-cocoa prices, heathrow expansion
June14-cig consumption, rtidal barrage production
June15-housing, crossrail proudction
these show just a rough idea of the case studies which came up in the previous years, which topic would be most likely to turn up again?

-ve and +ve Externalities apply to most of these

Reply 15

Lemauricien

U know the sugar tax is being introduced so they might put that in it would be interesting

Reply 16

harryleavey

Original post by Lemauricien

U know the sugar tax is being introduced so they might put that in it would be interesting

Yeah I thought that too

Reply 17

harryleavey

Agreed. @Bigbosshead was this a past paper question?

Reply 18

ciarapricex

my teacher has predicted either market or government failure to come up as both of them have been fairly consistent over the years. does anyone have any example questions on market failure or government failure please?