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Economics AS AQA exam tomorrow 16/05/2016

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it doesn't restrict freedom, as people can still buy and smoke cigarettes with the tax on

And you can still buy cigarettes with rules and constraints, just not as easily. Just as with tax you can still buy them but not as easily.

Reply 221

vvlp

Original post by Ajan123

Did both points on the PPF means productively efficent

I got that purely because it was a PRODUCTION possibility frontier so allocation has nothing to do with it.

Reply 222

sharmonraja

What assumption is made when drawing the demand curve?

Reply 223

stormyy

Original post by sharmonraja

What assumption is made when drawing the demand curve?

I changed mine to A in the end, although I think I originally put that all other factors remain co stant

Reply 224

sharmonraja

Original post by stormyy

I changed mine to A in the end, although I think I originally put that all other factors remain co stant

Was option A: demand increases as price decreases ?

Reply 225

jfahdgjdfshg

Not a form ofregulation. Subsidies and information provision would also be regulation in that case and you couldnt answer the question.

Reply 226

jfahdgjdfshg

Two multiple choice questions.

1) Assumption made while drawing the demand curve:
I put something to do with other demand factors remainingconstant

2) The last question: about equitable distribution of income
I put D - it is a value judgement

Reply 227

jfahdgjdfshg

That's wrong - a large chunk of the marks are for referring to the text - most of my points were based around the text

Reply 228

Kaasi

for the demand curve mcq, you are assuming that people will demand less at a higher price.

Reply 229

Kaasi

Also, do you think if I analysed the market failure (thoroughly), talk about the free market + evaluation and talk about regulation (increase minimum age to be able to smoke), will I be capped at a grade boundary for not talking about tax? The question explicitly talk about whether or not the government should regulate, so in my point of view, the tax policy is only just an extra thing you can add to accumlate marks...

Am I wrong?

Reply 230

sharmonraja

Original post by Kaasi

I didn't talk about taxation either. I based my answer around regulation

Reply 231

Kaasi

Original post by sharmonraja

I didn't talk about taxation either. I based my answer around regulation

Nice one. Hopefully we wont get deducted marks for not talking about another policy. What do you think you will get overall?

Reply 232

sharmonraja

Original post by Reaver Daniels

You'll probably be alright. I just saw assess and thought... Different policies needed.

Posted from TSR Mobile

Is the demand curve drawn on the assumption that 'all factors remain constant' or on the assumption that 'demand increases as prices decrease'

Reply 233

sharmonraja

Original post by Kaasi

Nice one. Hopefully we wont get deducted marks for not talking about another policy. What do you think you will get overall?

I mentioned an alternative policy in my conclusion though. I'm not sure hopefully I didnt do too bad. The multiple choice questions were tricky

Reply 234

sharmonraja

I mentioned 'informative advertising' as the extract stated that the government advertised the health problems associated with smoking or something like that

Reply 235

Tahret

Original post by sharmonraja

Is the demand curve drawn on the assumption that 'all factors remain constant' or on the assumption that 'demand increases as prices decrease'

All factors remain constant (ceteris paribus). You can have upward sloping demand curves.

Reply 236

jfahdgjdfshg

first one i think, demand increase as price decrease up to a point - it is a curve, a very high price demand doesnt no change

Reply 237

sharmonraja

If that is the grade boundary for an A then I should be fine too

Reply 238

whi03

Hi all!! I hope everyone's exam went well today, I normally get 20+ / 25 on the essay. However. Today I majorly panicked :frown:

Here is roughly what points I put, I did context 2 in the new Aqa as paper

Intro - defined mkt failure and govt failure

P1 - cigarettes - demerit good - neg externs in consumption + diagram , social cost and referred to date about externalities and cost to society, indirect tax and education etc help to reduce D and therefore reduce the mkt failure (gov intervention) and how intervention so far has halved no of smokers
Eval , opportunity cost of this intervention and it could result in gov failure and depends on PED

P2 regulation is expensive govt failure - enforcement cost of imposing no smoking with U18's in car - opp cost too, in reality can't stop people doing what they want to do etc
Eval- magnitude of neg externs is huge and not regulating can let problem get out of hand, it is proved regulation works ( can't really remember)

Conclusion - equity argument - normative judgment, regulation is needed as magnitude of externalities and social cost is huge , more should be done etc etc

It went something along those lines. Please be nice!! I don't want to worry even more haha!!

Thank you!

Reply 239

sharmonraja