F581 OCR Economics May 18th

2012 Jan-Cross elasticity
2011 May-Price elasticity of suppy
2011 Jan- Cross elasticity
2010 May- Price elasticity of demand
2010 Jan- Income elasticity

hmm i think its either going to be demand or income most like income

Do you recon that business relevance will come up?

Reply 121

Clare1994

OP

Original post by shaggyk

Do you recon that business relevance will come up?

I don't think i've ever seen a question asking about its business relevance but think you can mention it in a 8 marker

Reply 122

patra

2

Is business relevance in OCR economics? X

This was posted from The Student Room's iPhone/iPad App

Reply 123

Clare1994

OP

Original post by patra

Is business relevance in OCR economics? X

This was posted from The Student Room's iPhone/iPad App

For the elasticitys there's a little bit on it but not a lot that you can include really, wouldn't be too worried if you don't know it

Reply 124

kris3332

The little predictions of what i think might come up are PPC where you have to draw a point that pivots outwards from its previous position definition of economic efficiency, income or price elasticity of demand, demand and supply where both supply and demand are shifting at the same time, no idea about the 18 marker but possibly education somthing to do with taxes.

Reply 125

tomdunn

Our teacher reckons it will be YED, and then possibly pollution permits on the 18 marker...

Reply 126

jaya44

what should be the structure of the 18 marks essay??

Reply 127

patra

2

I really hope pollution permits come up!!!!!

Reply 128

Clare1994

OP

Original post by patra

I really hope pollution permits come up!!!!!

Same

Reply 129

Clare1994

OP

Exam tomorrow how is the revision for everyone going?
I'm going to be cramming tomorrow morning!

Reply 130

patra

2

how would you answer this question? Discuss whether higher education in the UK should be paid for by students' tuition fees or entirely by the government"

Reply 131

Super Cicero

18

Original post by shaggyk

Do you recon that business relevance will come up?

Original post by patra

Is business relevance in OCR economics? X

Business relevance is very likely to come up, you should definetly revise it.

Heres an example for YED:
You have 3 YED calculations:
low income earners 0.23
average income earners 0.55
high income earners 1.77

Firstly you need to define YED - the responsiveness of demand to a change in income.
Then say: first two calculations are income inelastic, third one is income elastic. All three are normal goods, as they all have a positive income elasticity of demand.
The data are only estimates and so cannot be fully relied on for future decisions.
Due to high positive elasticity of demand among high income earners, the business can expect demand to increase, assuming incomes continue to rise. So, the business should target services towards the high income earners.
However, in a recession, incomes may fall, and if this is the case then demand for the good amongst high income earners will fall the most due to the high elasticity, whereas demand will fall by less amongst the more inelastic low and average income earners.

That's 8 out of 8 on business relevance of elasticity question.

Reply 132

mimx

14

Note you can get business relevance questions for all the elasticities... PED, PES, YED, XED.

Reply 133

Clare1994

OP

Original post by mimx

Note you can get business relevance questions for all the elasticities... PED, PES, YED, XED.

I saw one a question of business relevance of PES the other day on a past paper and on the mark scheme one of the points was that it doesn't really have business relevance... I was like what a stupid question to ask then!

Reply 134

jaya44

Original post by patra

I really hope pollution permits come up!!!!!

what are the advantage and disadvantage of pollution permits?

Reply 135

Clare1994

OP

Original post by jaya44

what are the advantage and disadvantage of pollution permits?

Look at the the document i uploaded called essays i've got them all on there, think it's on the 3rd page of the thread

Reply 136

Super Cicero

18

Original post by jaya44

what are the advantage and disadvantage of pollution permits?

+ Fairly easy to implement
+ Allows market to help solve the problem and gives firms the incentive to reduce negative externalities
+ Achieves government's desired enviornmental outcomes

- Opportunity cost of monitoring them
- Doesn't compensate victims of pollution
- Problems of calculating and distributing permits to polluters

Reply 137

nm786

2

Original post by Super Cicero

+ Fairly easy to implement+ Allows market to help solve the problem and gives firms the incentive to reduce negative externalities+ Achieves government's desired enviornmental outcomes- Opportunity cost of monitoring them- Doesn't compensate victims of pollution- Problems of calculating and distributing permits to polluters

how would you elaborate this?

(edited 11 years ago)

Reply 138

nm786

2

Original post by Super Cicero

Business relevance is very likely to come up, you should definetly revise it.

Heres an example for YED:
You have 3 YED calculations:
low income earners 0.23
average income earners 0.55
high income earners 1.77

Firstly you need to define YED - the responsiveness of demand to a change in income.
Then say: first two calculations are income inelastic, third one is income elastic. All three are normal goods, as they all have a positive income elasticity of demand.
The data are only estimates and so cannot be fully relied on for future decisions.
Due to high positive elasticity of demand among high income earners, the business can expect demand to increase, assuming incomes continue to rise. So, the business should target services towards the high income earners.
However, in a recession, incomes may fall, and if this is the case then demand for the good amongst high income earners will fall the most due to the high elasticity, whereas demand will fall by less amongst the more inelastic low and average income earners.

That's 8 out of 8 on business relevance of elasticity question.