[sweetascandy]

(Original post by JJAS)
I understand the difference between income and wealth, but don't really understand how you are able to redistibute wealth. I understood wealth to be a stock of assets such as land, property etc, so i don't understand how it could be redistributed

can anyone help me out?

Tax people on their wealth? As unfair as it may seem! And then use these tax revenues to increase benefits for the poor. How does that sound?

[Moiraclaire]

(Original post by JJAS)
I understand the difference between income and wealth, but don't really understand how you are able to redistibute wealth. I understood wealth to be a stock of assets such as land, property etc, so i don't understand how it could be redistributed

can anyone help me out?

Inheritance, capital gains and the prospective mansion tax. Thatcher's right to buy scheme

[JJAS]

(Original post by Moiraclaire)
Inheritance, capital gains and the prospective mansion tax. Thatcher's right to buy scheme

thankyou, that has helped a lot, now I just have to hope there is a question on the best ways to redistribute income and wealth.

Could anyone explain to me how Marginal revenue product can be used to determine wage rates?

[tarek1]

(Original post by JJAS)
thankyou, that has helped a lot, now I just have to hope there is a question on the best ways to redistribute income and wealth.

Could anyone explain to me how Marginal revenue product can be used to determine wage rates?

Marginal revenue product looks at the revenue received by hiring one extra worker, from the previous worker. So the higher the marginal revenue product the higher the wage rate since they add more value to the company. If you look at the MRP of cleaners, you'll find that its significantly lower than say a footballer. That's why footballer are paid so much.

[JJAS]

(Original post by tarek1)
Marginal revenue product looks at the revenue received by hiring one extra worker, from the previous worker. So the higher the marginal revenue product the higher the wage rate since they add more value to the company. If you look at the MRP of cleaners, you'll find that its significantly lower than say a footballer. That's why footballer are paid so much.

Thanks

[Mani29]

My teachers have predicted Trade Unions and bonuses may come up.. and as for the section A, maybe BA and externalities..

Anyone else know what could come up? Also, what came up in the Jan 2012 paper?

[sweetascandy]

(Original post by Mani29)
My teachers have predicted Trade Unions and bonuses may come up.. and as for the section A, maybe BA and externalities..

Anyone else know what could come up? Also, what came up in the Jan 2012 paper?

bonuses?
Is trade unions part of labour markets? I'd be happy with externalities to come up!

[Moiraclaire]

FINGERS crossed for water markets ! There's no reason why they should come up, I just love them.

[Mani29]

(Original post by sweetascandy)
bonuses?
Is trade unions part of labour markets? I'd be happy with externalities to come up!

Yup, bonuses in the sense that for example, why should CEO's be awarded millions of pounds worth of bonuses whilst others are stuck on nmw? You'd basically bring in the wage differential arguements like MRP and elasticities etc...

I just saw the Jan 12 paper, section B was quite easy but section A was hard.. I'm hoping they'd make the paper easy for us!!!

[Mani29]

My personal feeling is that tuition fee's will come up since it was something that sparked up 18 months ago (which is when they wrote this paper) !

[Mathematix]

Does anyone have a complete list of the diagrams we need to know?

I was hoping to draw them all out and learn them beforehand

[ameena.milly]

(Original post by Mani29)
My teachers have predicted Trade Unions and bonuses may come up.. and as for the section A, maybe BA and externalities..

Anyone else know what could come up? Also, what came up in the Jan 2012 paper?

What does BA stand for ?




Jan 2012

Privatisation
Market failure and gov failure

Firms objectives
Contestability






This was posted from The Student Room's iPad App

[sweetascandy]

(Original post by ameena.milly)
What does BA stand for ?

This was posted from The Student Room's iPad App

British Airways

[ameena.milly]

(Original post by sweetascandy)
British Airways

Lol thanks


This was posted from The Student Room's iPad App

[scottb3scott]

(Original post by JJAS)
I understand the difference between income and wealth, but don't really understand how you are able to redistibute wealth. I understood wealth to be a stock of assets such as land, property etc, so i don't understand how it could be redistributed

can anyone help me out?

This is directly quoted from the text book page 102

1) Taxation- Progressive taxes take a higher percentage of the income or wealth of the rich to make the distribution more equal.
2) Monetary Benefits- Two types- Means tested and Universal.
Means tested benefits are only available to those who can prove their income.
Universal benefits are available to everyone regardless of income.
3) Direct provision of goods and services- These include provision of, health care and education.
4) Minimum wage- To reduce income inequality

Hope this helps. The book is probably better. How is the revision going?

[scottb3scott]

(Original post by Mani29)
My teachers have predicted Trade Unions and bonuses may come up.. and as for the section A, maybe BA and externalities..

Anyone else know what could come up? Also, what came up in the Jan 2012 paper?

I suppose you would talk about bonuses being an example of a monetary benefit. So this would increase the supply of labour to that particular occupation.

Trade unions is pretty standard. Draw a diagram showing how monopoly will profit maximise and then how TU will restrict the supply of their labour in a monopsonist market which will increase their wage rate and also increase employment.

[scottb3scott]

(Original post by ameena.milly)
What does BA stand for ?

This was posted from The Student Room's iPad App

British Airways

[scottb3scott]

(Original post by Jorgeyy)
Does anyone have a complete list of the diagrams we need to know?

I was hoping to draw them all out and learn them beforehand

Show MC intersecting ATC and AVC at the lowest point. Hence be able to show a loss making/supernormal profit making firm.
You will need the AVC to show what happens when in a competitive oligopolistic market when a price war is initiated by a firm reducing its prices. The firm will produce in the inelastic section of the kinked demand curve. The firm who survives the price war will be the on with the lowest AVC curve.

Show diminishing returns diagram- either by a: simple MC curve
a curve showing how total output is less every time a unit of labour is added.
An MRP curve showing how wage and working hours will decrease MRP every time another unit is added.

LRAC curve showing economies of scale (increasing returns to scale) leading to a point of MES and then dis economies of scale (decreasing returns to scale).

A diagram showing a market in perfect competition and then to compare a diagram showing how a monopoly will profit maximise be restricting output and increase price until MR=MC.

Price discrimination diagrams to show-
off-peak and peak demand curves with the same Supply (MC) curve.
3rd degree discrimination- Showing two different markets for the same product.

Different objectives- effect on price and output.
Profit maximisation- MR=MC
Sales maximisation/ Revenue maximisation MR=0
Average/Marginal cost pricing

Backward bending supply curve for labour. Showing the relationship between wage rate and number of hours worked.
This can be used to illustrate the income effect and substitution effect.

MSC>MPC to show a negative externality.

I think i got most of them. Hope it is all correct

[Alpha5]

I wish Econ 3 didn't exist, it's a horrible exam. Should do further Macro!
I think the 15 markers have a really poor Mark scheme, it's so random at times.

Something on Bankers salaries is long over due, labour markets is quite a dull topic there is not really alot of evaluation you can do. Farming is another dodgy one. Poverty probably will come up.


What does everyone think? Feeling confident?

[M1K3]

(Original post by Moiraclaire)
FINGERS crossed for water markets ! There's no reason why they should come up, I just love them.

Have you seen the water question in the official book, question at the end of chapter 4 i think, something to do with efficiency and the monopolistic water supply, i loved that one