AQA Economics 18th May 2012 Unit 1 Exam

Thanks

It was definitely a more in depth one.

The equilibrium was at 8 I think. So my logic was that at a price £9, the figures were 6 and 10 (thousand) - making the difference 4 thousand. 4x9000 was the £36,000 option.

By tedious do you mean long? Because I did the 8 marker in about 2 minutes... just said the maximum supported with data, then the minimum supported with data :P

The 12 marker was though yeh. Essentially I think they wanted a demand shift to the right (due to ageining population, changing expectations etc..), but also a maximum price at £0. So the excess demand simply increased.

8 marker i basically said how the forecast showed a sharp drop, and compared the highest forecast figure and there highest actual figure. Then gave the lowest figure/year and the highest figure/year so 2003 and 2013 i think it was.

12 marker, the supply curve was vertical and you just shifted demand. Said excess demand is due to the nature of the NHS, free rider problem, changing lifestyles and an ageing population.

Reply 341

IChooseThisName

2

What I put for (04):
- started off by defining externalities and drawing a graph.
- talked about negative externalities due to mining, and then about:
- indirect taxed on firms who pollute
- pollution permits
- natural monopolies arising in a free market due to resource control and hence market failure being the result
- linked it to monopoly power and how they can be productively inefficient
- government legislation/regulatory capture
- external costs not taken into account in a free market
- elasticity and its effect (related it to china and developing countries)
- monopoly control/disbandment/stopping mergers
- all of these possibly causing worse market failure due to government failure since: political myopia, self-interest and imperfect information
- concluded that some government intervention is needed (and then about where; developing/developed)

Basically wrote out chapter 9 of the AQA text book.

(edited 11 years ago)

Reply 342

Failure360

2

Original post by Axion

Were the last 5 multiple choice answers

A, A, A, B, B or similar to that?

I got something similar to that so I hope so!!!!

Reply 343

mindlessvandalism

Original post by studentroo

Did you focus on government intervention i.e. price controls, pollution permits, regulation etc and discussed the advantages and disadvantages?

I thought question one leaned towards should the government intervene or not, and the critisms of each, the effectiveness of the policies seemed to be something to put at the end, that's my interpertation of the question anyway

Reply 344

av_kidd

3

Original post by Axion

Were the last 5 multiple choice answers

A, A, A, B, B or similar to that?

no idea but i put D, A, A, B, A,

Reply 345

Jakeeyy

Original post by Failure360

I got something similar to that so I hope so!!!!

I really wish i could remember, if i could remember the questions i could probably remember haha. For the excess demand multi choice, was it C or something? YZ or something crazy.

Reply 346

Axion

15

Lol the first question had a distracter!

Economic efficiency vs needs and wants satisfaction.

The latter is correct.

Reply 347

username818763

3

Am I the only one with quite a lot of Cs in my multi choice answers?

Reply 348

username537823

14

was one of the elsaticity questions 4... -20/-5

Reply 349

s_p

I did the exam today as well, I thought the 25 marker (question 04) was harder than usual, but i sill understood it - i think. Basically i took it as a normal should the government intervene, but it was leading with free market so my first paragraph was free market and the signalling incentive and the pros and evaluation. Then in Extract B it said that governments regulated, so i did that as my second paragraph and then it said pollution permits. However i forgot the graph and therefore did taxation and said tax revenue could 'fix' the negative externality

Reply 350

MHay

Original post by mindlessvandalism

I thought question one leaned towards should the government intervene or not, and the critisms of each, the effectiveness of the policies seemed to be something to put at the end, that's my interpertation of the question anyway

Yeah, I took it as more about advantages and disadvantages, and not about the methods. However I mentioned taxation and did the -ve externalities diagram to explain how it would raise the price.

Reply 351

hannahjones13

Does anyone by any chance have a copy of the paper and the correct answers?! I know someone did last year was super helpful. I was able to know my exact mark for multiple choice!

Reply 352

MHay

Original post by s_p

I did the exam today as well, I thought the 25 marker (question 04) was harder than usual, but i sill understood it - i think. Basically i took it as a normal should the government intervene, but it was leading with free market so my first paragraph was free market and the signalling incentive and the pros and evaluation. Then in Extract B it said that governments regulated, so i did that as my second paragraph and then it said pollution permits. However i forgot the graph and therefore did taxation and said tax revenue could 'fix' the negative externality

Well, it sort of can. It doesn't fix negative externalities, it just accounts for it in the price.

Reply 353

MHay

Original post by sreddy17

was one of the elsaticity questions 4... -20/-5

I'm sure I got that. It was the income one I think....

5% decrease in income = 20% decrease in demand for something.

Reply 354

venenecinema

16

Original post by sreddy17

was one of the elsaticity questions 4... -20/-5

Yes

Reply 355

s_p

Original post by hannahjones13

Does anyone by any chance have a copy of the paper and the correct answers?! I know someone did last year was super helpful. I was able to know my exact mark for multiple choice!

That would be super helpful! If anyone does i would like a copy too!

Reply 356

Jakeeyy

Original post by MHay

I'm sure I got that. It was the income one I think....

5% decrease in income = 20% decrease in demand for something.

Which question was this? :s-smilie:

Reply 357

MHay

Original post by Jakeeyy

Which question was this? :s-smilie:

It had a diagram on it.... one of the multiple choice q's.

Reply 358

lemongrass

1

Original post by Jakeeyy

8 marker i basically said how the forecast showed a sharp drop, and compared the highest forecast figure and there highest actual figure. Then gave the lowest figure/year and the highest figure/year so 2003 and 2013 i think it was.

12 marker, the supply curve was vertical and you just shifted demand. Said excess demand is due to the nature of the NHS, free rider problem, changing lifestyles and an ageing population.

Why is the supply curve vertical? Healthcare is demand inelastic, yes, but for supply it is normal... could be increased with more funding? (shown in the data extract D).

Surely with your diagram it just showed a price increase?

Also healthcare is not a public good, it's excludable... The government provides it because it's a merit good. So free riders aren't a problem? I agree with the others though.

Don't get me wrong, you could be right! I'm unsure about the question.