Edexcel Economics Unit 4: 20th June 2012

Oh noo!! I knew I didn't read the 10 mark question properly ... I did outside of the EU

How many marks do you think I will lose and I thought it was an alright question .. I did talk about strict monetary policy and the strict convergence criteria .. how many marks do you think I'll lose

I'm a bit late to this thread, as straight after the exam I started intense revision my Biology exam today... But I'm just wondering if anyone actually chose question 1 or 3 over question 2.

Question 2 was so easy, I can't remember what question 1 was but I remember it being really hard.

urgh I just want my grade now. This is the one which everything hinges on

Me too, I need an A*

For that question do you remember if you had to compare eu member to non ey member in eurozone e.g. Uk or anywhere outside eu e.g China/ India

Me too, I need an A*

I need to get an A* too otherwise it's bye bye studying economics at bath and hello insurance :/

Enjoyed it in truth

Development question was riddled with oppurtunities to add theories. Prebisch-Singer, Harod Domer, Rostow model, Lewis etc

Did inequality data response which was difficult-ish, mostly due to the strange capitalism question. I think I messed up the axis on the Lorenz curve for 4b as well. Oh well.

surely harod domer and lewis model are theories to promote development. not policies that restrict development

surely harod domer and lewis model are theories to promote development. not policies that restrict development

Wasn't one of the questions how development can be promoted? If not I'm sure you could mention this and evaluate and say they may hinder development.

Wasn't one of the questions how development can be promoted? If not I'm sure you could mention this and evaluate and say they may hinder development.

The first one I used them as evaluative points and the second question was about promoting development so I used them there as well.

I'm sure the first one a) was limits to development. Then b) was how free trade and debt relief can promote development.

I put savings gap as one of my points for a) but i didn't mention the harrod domar model as I thought that was based on promoting development. although the are based on the same idea of low savings...low investment..low capital..etc..

how did you use the harrod domar model as an evaluation point for the first one? And a point for the second? Wasn't the b) only about free trade and debt relief?

Hye guys I have noy been on this thread as had bio and maths after this exam and since then have been mostly sleeping etc so can I ask I chose the development question but for the first part I set it out like this
Explain Harrod Domar model, explain how gaps in it can lead to countries being trapped in low capita income trap
Then went on to describe low savings gap, give a reason(primary product dependency, perbeusch sing hypotheses) and how it is a gap in the model.
My next point was foreign exchange gap, reason(lack of exports and explaining why it might be like that) and how that stops countries transition in the model
My 3rd one was low human capital levels(lack of education due to people not perceiving its benifits etc)

My evaluation was throughout essay and was like as follows:
Commodity prices have been rising, can mean possible increased incomes so higher savings, also that some products like gold are normal goods)
Not countries fault, as things like CAP are purposely stopping them from exporting the goods in which they have comparative advantage
Education levels have been rising due to U.N development goals
Also talked about how this foreign exchange gap can be closed also lack of investment due to low savings can be solved by FDI but then showed how FDI is put off by low human capital levels so then used that to show low human capital levels were the most important factor. Then did a conclusion showing other things may be limiting development such as political instability lack of property rights etc

Also throughout the essay linked higher incomes to higher tax revenues to more fiscal power to fund development projects
Would this be valid to get me the higher marks or is me focusing on the problems all linked to one model a downside?

Also for the 2nd part I was really confused how to structure it so this is what i did
explanation of each method, how it would improve development and the downsides.
So for debt cancellation:
I explained why some LDCs accumulated massive debt(the 2 oil crisis), explained what the debt and its interest charged does to LDC how it inhibits development, how debt cancellation would improve devlopment(relating it to uganda) then talked about drawbacks of debt cancellation so
moral hazard, dependency, precedent set, Also only works if accompanied with other changes like political stability.
And with trade liberlisation showed effects of tarrifs(with diagram) so consequently how removing them and the effetcs that would have on development talked about increased exports so foriegn exchange gap filled blah blah blah
Then evaluated by talking about how it will lead to short term job losses, sometimes if it is done with infant industry it may have negative effects, also lack of export demand right now with eurozone crisis, if industries have accumalated an inward looking attitude they may be too inefficient, Govt tax revenues lost, Depends on cooperation from developed countries.
But I didnt compare the two methods and am not sure if you have to just concluded in the last paragraph by saying that only by cancelling debt will government be able to spend tax revenues earnt in long run by trade liberlisation on development projects so you need both

Is that good enough to access higher marks or do you have to compare throughout as really unsure.. Any help would be much appreciated as really need the a*