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

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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.

yeah.. they usally give you help in extracts that was one way of giving car markets incentive to produce electric cars.
the question was about what government intervention can you introduce and evaluate - advantages and disadvantages eg. subsidy will lower the cost for consumers and increase pos externality but will increase the rate of tax cuz subsidy is very expensive or this may not even be needed if there was information failure or you could of said subsidy could encourage firms to be inefficient and rely on govern aid

you could also of talked about free market gives you hint in extract economies of scale

Reply 21

HSdhillin

I did Q27 despite the rest of my class doin Q26 :|
For C i a rightward shift of the supply, but im not sure if thts right?
Werent much to argue in D either, but i did evaluate enough i think :\

Reply 22

hortz123

Yeah mate, I did that too. Definatly a rightward shift, due to more supply.....x

Reply 23

hortz123

I did 27, outward shift supply due to increased supply for houses x

Reply 24

HSdhillin

what did every1 talk about in D, i talked about negative externalities with obesity, tax on video games, subsidies on bikes etc

Reply 25

Benjaho

I did 26 too. I put a shift to the left of the demand curve.

What did you all think of the multiple choice? Which ones did you find hard?

Reply 26

hortz123

Same mate, it gave you so many ideas in article to talk about. I did negative externalities, so government intervention was required etc etc x

Reply 27

HSdhillin

what did people put for the welfare Q, out of schools, roads etc?

schools i think

HSdhillin

what did people put for the welfare Q, out of schools, roads etc?

Schools

Reply 30

Plt_KVP

Did Q26. Looked at question D in Q27, saw something about 'encourage people to do exercise', went like "WTF ! :|", did other Q.
Generally happy thru the whole of Q26, straight forward. I found the MC questions harder though.
Good paper though.

Reply 31

Chewie234

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:

Glad to hear you put this aswell, I wrote it and I thought I was talking crap.

I ran out of time for a conclusion to D but did two sections on education and subsidies.

Reply 32

Sherlock.H

HSdhillin

what did people put for the welfare Q, out of schools, roads etc?

Schools

Reply 33

Chewie234

I didn't manage to do a conclusion for 27D, does anyone really have any idea as to how many marks that might of cost me? Otherwise, the essay question was ok but it was part C i messed up on.

Reply 34

Benjaho

Yeah I did schools as well.
What about the PEd was -0.6 and they increase their prices. I think I put revenue will fall but by less than 6%.

Reply 35

Plt_KVP

HSdhillin

what did people put for the welfare Q, out of schools, roads etc?

i did hospitals, because it had the biggest positive externality number, something like 140, others were lower.

so im assuming, bigger positive ext number = more welfare for society?

perfect

Chewie234

Glad to hear you put this aswell, I wrote it and I thought I was talking crap.

I ran out of time for a conclusion to D but did two sections on education and subsidies.

Haha nice

Aaah a conclusion would have got you at least 3/4 more marks I feel, you missed out there :rolleyes:

I talked about subsidies, +ve advertising and education :woo:

Reply 38

HSdhillin

5mark - positive externalities - social benefits exceed social costs etc...is tht right?
8mark- what comparision points did people come up with?

Reply 39

Benjaho

I put schools because I worked out the social costs and social benefits for each. 2 were something like 100 to 140 and 120 to 140, then one was clearly not right because social costs were larger than social benefits, but then the ratio of schools was something like 120 social benefits to 40 social costs. So I thought this was the best ratio and so went with that.