The MCQs definitely were not the easiest, Q3 looked an easy question until i read the extract. Q4 also looked a nice question but there were a few ways you could look at it and by the end i was confused by it. Time i thought definitely was an issue.

Reply 7

mesamali

Omg.... i Flopd the exam today it was a retake
i done the multichoice easyily
becuz of most questions were in past exam papers i done
but the question 26 i floped C and D
shifted the suppy curve to the right? lol
:mad:

For question D i jus mentioned so much stuff man totally flopd :smile:

Reply 8

Ooo'Yeah

11

It was alright I suppose :smile:

I did question 27 although everyone else I spoke to did question 26.

Reply 9

ali_92

OP

question c on 26 was confusing because the extract was just rambling on forever

Reply 10

mesamali

what did you do i shifted the supply curve to the right indicatiing that new cars factory's have closed down which means that there will be more people wanting to buy old cars :frown:

lol

Reply 11

username231803

Ooo'Yeah

It was alright I suppose :smile:

I did question 27 although everyone else I spoke to did question 26.

I did 27 too: leftward shift of demand for C, as houses less desirable due to noise pollution etc? Also, for question D I explored sudsidies (with graph) then only just had time to do paragraph on education. Rushed conclusion. You?

Reply 12

ali_92

OP

well i shifted supply to the right because it said people wanted to 'trade down to cheaper cars', which i thought meant some people were selling their cars more
and i shifted demand to the left because it said people would keep their cars for longer, so they wouldn't be demanding any more cars if they're keeping their current one for longer

Reply 13

Alex22Spurs

1

Brown1

I did 27 too: leftward shift of demand for C, as houses less desirable due to noise pollution etc? Also, for question D I explored sudsidies (with graph) then only just had time to do paragraph on education. Rushed conclusion. You?

I did 27 - for C I shifted the supply curve to the right, i.e less fields, more homes, lower prices - I was worried I got it wrong but most other people said they did the same :smile:

U merkd it.

i did question 26, on the demand and supply diagram, i said that the demand curve shifted inwards, because since the manufacturers of the luxury cars are offering an incentive of 15,000, therefore it becomes more affordable so the demand for new cars will increase as consumers alter their market behavior, since these products are substitutes, an increase in demand for new cars will cause a decrease in demand for used cars therefore the demand curve shifted inwards, reducing the price.

on part d, i mentioned subsidies, taxation on the old cars as this produces negative externalitites i.e. carbon dioxide and i mention about imperfect information since motorist hasn't got a clue about the eletric cars.

Reply 16

JesusRevived

9

I found multiple choice quite hard tbh.
i chose question 26

a) economies is a act that are usally introduced by a monopoly where they increase production to reduce the average cost per unit.eg car cost 1mil to make if you create 100,000 of them you could sell them at 10 thousand each.

b) one increasing while other was decreasing gave year and % change
Lowest drop in price highest drop in price gave figures

c) now here i was so confused got muddled up between used cars and second hand cars drew wrong diagram probaly only get 4 marks for drawing axes right

d)like had 10mins...
government intervention is where the government seeks to correct market failure.

talked about negative extern referred to extract ( forgot to draw a diagram) talked about subsidy which will increase demand but will increase income tax as subsidy is very expensive, also it may encourage firms to be inefficient as they rely on gov aid.

than talked about taxing firms who are not producing electric cars.(here i noticed i haven't drawn any diagram was like ****!)so i draw a tax diagram than talked about it would reduce demand and give incentive to firm to produce electric cars.then talked to disadvantage it could create sin tax when people look at black markets.

than here i didn't know if this was relevant i talked about free market and how monopoly can benefit from economies of scale but which may also lead to disecon of scale and how a free market where monoploy can charge high prices cuz of low competition.

evaluate saying its essential for government intervention it could work really well if information was accurate for subsiding but saying free markets advantages aswell but gov intervention outweighs the points of a free market

i think im lucky to get a c overalll

Reply 17

username231803

Alex22Spurs

I did 27 - for C I shifted the supply curve to the right, i.e less fields, more homes, lower prices - I was worried I got it wrong but most other people said they did the same :smile:

Hopefully it's one of those with more than one right answer as both arguments are economically plausible

Reply 18

Alex22Spurs

1

Brown1

Hopefully it's one of those with more than one right answer as both arguments are economically plausible

Yeah you're right - I sat there for about 10 minutes wondering if demand shifts to the left or supply shifts to the right, as they both seem to be right :woo:

Reply 19

Sowande

O, **** I though question d on 26, was about positive externalities didnt it mention consumers not demanding cars and that the government wanted to offer subsides which are usually associated with positive externalities.

AQA Economics Unit 1- Markets and Market Failure 28/05/10 (post discussion)

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