F581 OCR Economics May 18th

it said alone, not only...

Oh dear, are you being serious, or is this some sort of joke? How do you think you would have 18 marks worth of things to say about just regulation?

Can I check with some of my answers on here? I remember a few questions

For a demerit good I put: A good which is worse for the consumer than he/she realises

For the 18 marker I talked about examples of regulation eg I talked about restricting opening times and then tried to hit level 4 by saying how effective it will be depends on how specific the opening time rules are (only open 10 hours a day? or not after 8pm? etc)... I then talked about restricting advertising, an example would be advertisements would HAVE to have the nutritional information of the products being advertised on them in order to meet government standards, I then said that this would depend on peoples ability to comprehend nutritional lables.


Any thoughts?

you know for the comparison of mcdonalds and burger king did you have to do a extension in demand for mcdonalds and a decrease in demand for burger king (i didnt do it this way)??

What other way could you have done it? It said assuming supply doesn't change.

What other way could you have done it? It said assuming supply doesn't change.

I stupidly did a movement for bk along the demand curve. So no shift.


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Help guys! For my 18 marker I wrote about
-Negative externalities and a tax diagram. Overconsumption, missallocation of resources, not at optimum level of output, allocative inefficient...
-Wrote about regulation and tax and how it would reduce the demand of demerit goods
-Evaluation like cost of enforcement, need support from the public
-Information failure and how the government uses regulation to make firms provide accurate information
-Small evaluation and judgement

Btw the yed question, is 0 a normal good?

Neither normal nor inferior? but i assume you can get away with normal as it's sort of "positive"

Really, a normal good is one which rises in demand as income rises. An inferior good is one which falls in demand as income rises. Neither of these apply to a YED of 0 when you think about it.
0 means the good is completely inelastic to a change in income.

It was only 2 marks tho. You get 2 for the figures (one for 0 and one for 2), then 2 for comparing the 2 saying one is elastic, one is inelastic. I didn't compare though

Don't be so hard on yourself! I struggled with this exam too. I agree with you that it was slightly too generous and ambiguous in terms of interpretations however its done and dusted now ,so fingers cross you never know!

Anyone remember that 6(?) marker?
I think it was something like, state & explain 2 reasons why demand for fast food increases during a recession?

What did y'all put?

Anyone remember that 6(?) marker?
I think it was something like, state & explain 2 reasons why demand for fast food increases during a recession?

What did y'all put?

Neither normal nor inferior? but i assume you can get away with normal as it's sort of "positive"

Really, a normal good is one which rises in demand as income rises. An inferior good is one which falls in demand as income rises. Neither of these apply to a YED of 0 when you think about it.
0 means the good is completely inelastic to a change in income.

It was only 2 marks tho. You get 2 for the figures (one for 0 and one for 2), then 2 for comparing the 2 saying one is elastic, one is inelastic. I didn't compare though

Doesn't 0 income elasticity of demand mean that its so inelastic, it behaves like a necessity? Because necessities have 0 YED - quantity demanded does not change regardless of income - represented by a vertical line on a Income/
Q.D graph.

I wrote that, would it be correct?

Edit: Also, as YED is almost analogous to PED, this explains why in the USA is will be so difficult to reduce the sale of fast-food.

....

Yeh, I did kind of say some of those things but not quite as explicitly I was would have liked.