Economics AS AQA exam tomorrow 16/05/2016

yeah, i was quite fortunate too as my teacher gave us this question to do back in february so as soon as i saw it i was quite relieved

Reply 201

JackRees90

and also did you have to come up with your own policies for the cigarettes 25 marker or would it have been okay just to refer to the policies provided within the data sheets.

Reply 202

rohanl98

2

Original post by Satch13

What did people write about for the cigarette 25 marker?

Intro: Market Failure defined and brief explanation of context.
P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

Included more just don't remember.
Hope this helps.

(edited 7 years ago)

Reply 203

AMaas

1

Original post by JackRees90

and also did you have to come up with your own policies for the cigarettes 25 marker or would it have been okay just to refer to the policies provided within the data sheets.

I talked about the policies mentioned as potential solutions, but used their limited impact in the extracts to inform my evaluation.

Reply 204

Ajan123

1

Original post by rohanl98

Intro: Market Failure defined and brief explanation of context.
P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

Included more just don't remember.
Hope this helps.

Wouldn't you also have to talk about other interventions? For example Pmin, taxes as well as regulation and talk about there positive and negative effects? Just wondering

Reply 205

Satch13

1

Original post by rohanl98

Intro: Market Failure defined and brief explanation of context.
P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

Included more just don't remember.
Hope this helps.

Thanks, i used facts and figures from the context, but didn't write about pregnant women smokers

Reply 206

JackRees90

"Demerit goods are goods that are overprovided by the market mechanism - they are commonly associated with negative externalities. Examples include cigarettes and alcohol"

Is that worthy of the 3 marks?

Reply 207

Ba1242

Original post by Kholmes1

Was that the one where you had a choice of four curves. D was just a straight line. I put C. Can't really remember anything else. If you know what question im talking about, what did you put?

I put C aswell 😭

Reply 208

Satch13

1

Intro: demerit goods, market failures and examples of negative externalities
P1: regulations why they are good with graph then evaluated them why they are bad
P2: Taxes: why they are good/what in theory should happen with a graph, then wrote about how taxes generate black markets and how the tax wouldn't work as cigarettes are inelastic
P3: Information provided and how it would work in the long term, but wouldnt work in the short term
Conclusion: Regulations and tax would help reduce in the short term but would't have a huge effect adn information to under 18's would/could reduce smoking and the market failures associated with it in the long term

Reply 209

AMaas

1

Original post by Ajan123

Wouldn't you also have to talk about other interventions? For example Pmin, taxes as well as regulation and talk about there positive and negative effects? Just wondering

That's how I did it;

P1: Show market failure on MPC/MPB diagram, cause of it. Explain why there is market failure due to externalities etc.

P2: Regulation, diagram showing it. Chains of reasoning explaining how it fixes the market failure. It's good as it had legal backing, directly affects the quantity etc. Evaluation; hasn't worked as seen in the extract. Also expensive to enforce, may result in government failure.

P3: Taxation, diagram showing it. Chains of reasoning explaining how it fixes market failure. Good as it raises money rather than spends it like regulation etc. Evaluation; hasn't worked as seen in extract. Also cigarettes are addictive, so very price elastic, so unlikely to be very successful.

P4: Price floor/minimum legal price, diagram showing it. Chains of reasoning explaining how it fixes market failure. Good as firms cannot take on cost, so it is more likely to cut consumption than taxation etc. Evaluation; price inelastic, so limited effect.

P5: Conclusion. Regulation and taxation have done little as seen in extract. Regulation and price controls incur a cost of enforcement. Therefore they are best used together, as intakes from taxation can fund the enforcement of others. However, possibility of government failure etc.

Reply 210

Ajan123

1

Was concentration ratio the answer to one of the multiple choice questions? ( Forgot the question)

Reply 211

Satch13

1

Original post by Ajan123

Was concentration ratio the answer to one of the multiple choice questions? ( Forgot the question)

Yes i put that

Reply 212

vvlp

10

Just to clarify with someone, taxation was a part of regulation, correct? My friends are telling me otherwise but I'm pretty sure I'm right.

Reply 213

Ajan123

1

How did people structure the ten mark question on taxation?

I included 2 definitions
The chain of reasoning
diagram

Reply 214

Satch13

1

Original post by vvlp

Just to clarify with someone, taxation was a part of regulation, correct? My friends are telling me otherwise but I'm pretty sure I'm right.

Regulation is the imposition of rules, contros and constraints, which restrict freedom of economic action in the market, unfortunately yor friends are right

Reply 215

JackRees90

Original post by Ajan123

How did people structure the ten mark question on taxation?

I included 2 definitions
The chain of reasoning
diagram

I spoke about how it directly affects demand in that the cost of the tax goes directly on the consumer due to its inelastic nature. However, some people have said that you have to talk about how supply goes down which then causes an increase in price, any ideas?

Reply 216

vvlp

10

Original post by Satch13

Regulation is the imposition of rules, contros and constraints, which restrict freedom of economic action in the market, unfortunately yor friends are right