Results are out! Find what you need...fast. Get quick advice or join the chat
Hey there Sign in to join this conversationNew here? Join for free

Revision/Discussion Thread Edexcel Economics Unit 2 Friday 25th of May 2012

Announcements Posted on
    • 0 followers
    Offline

    ReputationRep:
    economic growth disadv- sizes of economies differ, thus harder to compare, benefits of economic growth are usually benefitted by higher end workers....etc...

    thanks alot , now back to finishing off this june 2010 paper......then exam in 2 days..........then freeeeeeeeeeeeeeeeeeeedooooooooo ooooooommm
    • 0 followers
    Offline

    ReputationRep:
    (Original post by ryanboi)
    12 marks in Unit 2 are easier than in Unit 1. You will always be awarded 4 marks for evaluation and 8 marks for KAA.
    Its the way the questions are given which does my head in, in the 30 mark you know the question is going to be on policy conflicts or how X could improve with the use of SSP or MP or FP
    • 0 followers
    Offline

    ReputationRep:
    (Original post by QwertyG)
    Damn this exam man I need 90+ UMS for this sheit, 30 marks questions are actually do able but its those 12 mark questions which do my head in
    yeah i agree, 30 marker question are easy to write about cos they can usually be answered in many ways, but 12 mark questions seem to be more narrow and specific, i find it harder to think of answers for them, *sigh*
    • Thread Starter
    • 4 followers
    Offline

    ReputationRep:
    (Original post by QwertyG)
    Its the way the questions are given which does my head in, in the 30 mark you know the question is going to be on policy conflicts or how X could improve with the use of SSP or MP or FP
    lol I personally think that Unit 2 is easier hehe
    • 6 followers
    Online

    ReputationRep:
    Can somebody explain to me the multiplier effect
    • 2 followers
    Offline

    ReputationRep:
    (Original post by Jamiesonn)
    Can somebody explain to me the multiplier effect
    I don't really know 'the definition' but i remember it as though whenever there is an injection into the circular flow of income, it has a greater than proportionate effect on the overall output. for example the government pumping in 20million leads to 40million as it travels through from firms to households? ish? somebody else help me here
    • 0 followers
    Offline

    ReputationRep:
    (Original post by Jamiesonn)
    Can somebody explain to me the multiplier effect
    an initial change in AD can have a greater final impact on equilibrium national income, i.e. the multiplier effect, it comes about because injections of demand into the circular flow of income stimulates further rounds of spending.

    basically, if government spend more money, then that directly adds to AD, higher spending= more jobs created and work done, this leads to more people employed---> spending money---> higher consumption, hence an even higher AD---> businesses making more profits and expanding/investing/supplying more--> hiring more worker---> more people spending money/higher consumer disposable income--> higher consumption again---> AD rises further...etc etc....
    a multiplying effect.

    one effect of aggregate demend may stimulate further rounds of AD going up. this can also apply for the reverse, as in AD falling back if the multiplier effect is working in contraction.
    • 0 followers
    Offline

    ReputationRep:
    What resources are you lot using to revise the unit Anforme book is useless.
    • 1 follower
    Offline

    ReputationRep:
    Could someone please please explain the wealth effect and influences from inflation or economic growth on it please.L!?!?
    • Thread Starter
    • 4 followers
    Offline

    ReputationRep:
    (Original post by liabhimani)
    Could someone please please explain the wealth effect and influences from inflation or economic growth on it please.L!?!?
    Inflation means that MPC may raise interest rates to fight it. An increase in interest rate means that mortgage interest repayments will increase and so will have a negative wealth effect on UK economy since majority people in the UK owns a mortgage. This will cause consumer confidence to fall and thus lead to fall in consumption, hence a decrease in AD.

    Economic growths means that house prices could be increasing. This will have a positive wealth effect as most people have houses as part of their wealth. So increase in house prices will increase people's wealth. Therefore, people will be more confidence and thus spend more.

    Evaluation could be that fixed mortgage holder will not be affected by raise in interest rates.
    • 6 followers
    Online

    ReputationRep:
    (Original post by MOMI5K)
    an initial change in AD can have a greater final impact on equilibrium national income, i.e. the multiplier effect, it comes about because injections of demand into the circular flow of income stimulates further rounds of spending.

    basically, if government spend more money, then that directly adds to AD, higher spending= more jobs created and work done, this leads to more people employed---> spending money---> higher consumption, hence an even higher AD---> businesses making more profits and expanding/investing/supplying more--> hiring more worker---> more people spending money/higher consumer disposable income--> higher consumption again---> AD rises further...etc etc....
    a multiplying effect.

    one effect of aggregate demend may stimulate further rounds of AD going up. this can also apply for the reverse, as in AD falling back if the multiplier effect is working in contraction.
    Thanks

    This was posted from The Student Room's Android App on my GT-I9100
    • 1 follower
    Offline

    ReputationRep:
    (Original post by ryanboi)
    Inflation means that MPC may raise interest rates to fight it. An increase in interest rate means that mortgage interest repayments will increase and so will have a negative wealth effect on UK economy since majority people in the UK owns a mortgage. This will cause consumer confidence to fall and thus lead to fall in consumption, hence a decrease in AD.

    Economic growths means that house prices could be increasing. This will have a positive wealth effect as most people have houses as part of their wealth. So increase in house prices will increase people's wealth. Therefore, people will be more confidence and thus spend more.

    Evaluation could be that fixed mortgage holder will not be affected by raise in interest rates.
    Thank you so much!!!!!!!
    • 8 followers
    Offline

    ReputationRep:
    Geoff and the team over on the Economics blog have been hard at work in recent days adding new revision materials to support students taking their Edexcel Unit 2 exam on Friday. Hopefully these will be useful for you - they contain lots of tips on evaluation too.

    Unit 2 Macro: Measuring Unemployment in the UK

    The Current Account of the Balance of Payments

    UK Trade in Services

    Migration and the UK Economy

    Positive and Negative Multiplier Effects

    The Importance of Productivity

    Measuring Inflation in the UK

    Real Interest Rates

    Human Development Index (HDI)

    The Output Gap

    Government Spending

    Macro Revision - Key Statistics on the UK Economy

    Interest Rates and the Exchange Rate

    Real Disposable Income

    Jim
    • 6 followers
    Online

    ReputationRep:
    What are the evaluation points for the multiplier effect? I know one is time lags but what else?
    • 5 followers
    Offline

    ReputationRep:
    (Original post by Jamiesonn)
    What are the evaluation points for the multiplier effect? I know one is time lags but what else?
    With the multiplier effect you could talk about the size of the investment and how large the multiplier might be. You could also mention the size of withdrawals such as the propensity to save rather than continue to spend (this will reduce the effect of the multiplier).

    Hope that helps


    This was posted from The Student Room's iPhone/iPad App
    • 0 followers
    Offline

    ReputationRep:
    bump?
    • 6 followers
    Online

    ReputationRep:
    (Original post by shaminn)
    With the multiplier effect you could talk about the size of the investment and how large the multiplier might be. You could also mention the size of withdrawals such as the propensity to save rather than continue to spend (this will reduce the effect of the multiplier).

    Hope that helps


    This was posted from The Student Room's iPhone/iPad App
    Thanks very much
    • 2 followers
    Offline

    ReputationRep:
    (Original post by Jim Riley)
    Geoff and the team over on the Economics blog have been hard at work in recent days adding new revision materials to support students taking their Edexcel Unit 2 exam on Friday. Hopefully these will be useful for you - they contain lots of tips on evaluation too.

    Unit 2 Macro: Measuring Unemployment in the UK

    The Current Account of the Balance of Payments

    UK Trade in Services

    Migration and the UK Economy

    Positive and Negative Multiplier Effects

    The Importance of Productivity

    Measuring Inflation in the UK

    Real Interest Rates

    Human Development Index (HDI)

    The Output Gap

    Government Spending

    Macro Revision - Key Statistics on the UK Economy

    Interest Rates and the Exchange Rate

    Real Disposable Income

    Jim
    I tip my hat and monocle to you sir, thank you.
    • 0 followers
    Offline

    ReputationRep:
    what are the key diagrams bar the standard AD/AS ones?
    • 5 followers
    Offline

    ReputationRep:
    (Original post by ryanboi)
    x
    I'm doing this exam but I'm only starting revision today so only 2 days revision. What do you think is the best way to revise so I can at least secure a C grade is it possible for me to get a C seeing as I'm only starting revision now? Thanks

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: June 10, 2012
New on TSR

Find out what year 11 is like

Going into year 11? Students who did it last year share what to expect.

Article updates
Reputation gems:
You get these gems as you gain rep from other members for making good contributions and giving helpful advice.