AQA Economics 18th May 2012 Unit 1 Exam

Legislation are rules that have to be approved by the government whereas regulations do not have to go through that process, they can be directly imposed by an authorised or approved person or persons. Deregulation would be used to increase competitivness in an economy. I have attached a revision powerpoint and also a example 25 marker. Good luck!

ohh thanks, why does market failure arise when positive externalities exist in consumption? isnt that a good thing

What does this mean?
"Policies are static but markets are dynamic" I saw someone write this... ? I think it is like policies (regulation etc..) but what does it mean? Is it an evaluation point?

Hey, i have attached my attempt of econ 1 june 11 paper section B only. i have attached it to get some feedback on how i can improve my answers. so any help is very much appreciated thanks

btw i did this in unlimited time and the diagrams are from google

Price elasticity of supply is the responsiveness of supply to a change in the price level. For example if the prices of houses increase the incentive to supply more will increase. The price elasticity of supply measures how much supply will increase if it does increase.

2. From 1989 to 2000 the general trend is that house price affordability has increased. In 1989 it was approximately 12.5 compared to 2001 where it is just over 7% approximately 7.2%.

From late 2000 onwards to late 2006/early 2007 the house price affordability decreases from approximately 7.2% in 2000 to approximately 11.8% in late 2006/early 2007.

Policies are static because they do not account for the changing nature of markets which are dynamic. Static just means looking at the situation at one one point in time, while dynamic means over a long period of time

Also, for the 25 marker. When moving on too a new paragraph do you leave a gap between each paragraph or just start a new sentence underneath with an indent?

Okay sweet, how could I use it in my essay? Could you please give an example? Also, do you leave spaces inbetween paragraphs for your 25 marker?

You would use it in terms of your evaluation. You'd make a point on, say a form of government intervention due to market failure, you would use the 'markets are dynamic and policies are static' arguement as a criticism of government intervention, this is why free market economist argue that markets are better left unregulated to round your arguement off nicely. Something along those lines

Thanks very much! And you would agree with leaving the gap between each paragraph?

1)

Your example doesn't relate the definition. If you want to put an example to confirm your 5 marks do so, but you explained shifts in supply, whereas you're supposed to be giving an example for elasticities. e.g wheat has a very low PES due to harvest times.
I am not even sure you'd get 5 marks for this, you said a "change in the price level" - that's macro. Leave out level. 3 marks IMO

2)

4 marks



IMO, this isn't a significant point to make. In future, try to look for a range from the start to the end of the period. Maybe 2 marks at most for this

Total 6/8

3) 8 max. You don't need to describe the diagram, by stating where the new prices and quantity are. The markscheme says: Note: Do not award marks for simply describing what a diagram shows, for example a shift
to the right of the demand curve. Just say, demand shifted to the right, hence increased price and quantity. HOWEVER, you need to build up a chain of reasoning, to EXPLAIN why increases in income or increases in population will cause demand to increase. Also, try to include TWO relevant definitions to get 2 easy marks - you cannot use the definition you had to write in the 5 marker.

4) Good start. But, you said governments should intervene by increasing the supply, and you analysed and evaluated, but the next paragraph said the government should provide subsidies - which is in essence, increasing supply. Therefore, I would get rid of "One way in which...another strategy. and copy


into the subsidies paragraph - more evaluation, higher marks.



Silly mistake - to the right.

The essay is good, but it doesn't address the second half of the question adequately - "against government
intervention"
You should talk about the market mechanism, and evaluate that.

I say 17/25

so 3+ 6 (maybe) + 8+ 17
= 34/50

Did you write that powerpoint? I'm not sure the diagram for subsidies is correct...

could you answer that please, i want to see how you would answer it. do it in unlimited time though

i would say minimum prices= black markets(informal economy), grey markets, consequence on the unintended,

legislation= minimum age

free market equilibrium is to high- negative externalities in consumption. market failure

When talking about minimum price you can also say that it causes excess supply. Evaluative marks.

That's not evaluation; thats analysis.