A2 AQA Economics Unit 3 (ECON3) 11th June 2015

Original post by tazza ma razza

ahhh monsieur Stardude acht All good? The econ revision going well ?

hahaha :smile:

if only lol Perfect Competition + diagrams = Match made in heaven <3

Exchange rates are so difficult to understand in my opinion, so i will be following suit to be quite honest with you and skipping them as well :smile:

Not gonna lie, the unit 4 stuff on fiscal policy is a dream as well - got my fingers crossed for that as well :smile:

lol

Yeah all good thanks. I don't know what econ revision you're talking about... :colondollar:

I assume you've done loads then..?
Fiscal policy yep agreed, would be nice for sure.

Reply 22

Schmitzel

Des anybody know whether it's actually necessary to distinguish between all the different views of the various economists, I'm pretty sure you can still get level 5 answers without going into detail about the different views of the various economists, right?

Reply 23

Schmitzel

Original post by ridirahman

Help?

Basically at a minimum price of 15, the domestic level of demand is 5m, and supply is 15m.

Farmers can meet the 5m demand by selling at a price of £15, therefore generating £75m.

they now have 10m units left but no one in the domestic economy wants to buy them?

so the government take to pple excess stock and sell it on the international markets for £5 a unit, ge ranting a total of £50m

they then go back to the farmers and pay them there guaranteed £15 per unit for he 10m units, therefore paying them £150m

therefore the cost to government is £150m - £50m = £100m

hope this helps.

Reply 24

Original post by Schmitzel

Des anybody know whether it's actually necessary to distinguish between all the different views of the various economists, I'm pretty sure you can still get level 5 answers without going into detail about the different views of the various economists, right?

You do not have to mention explicitly the views of an economist, although this doesn't mean you shouldn't give advantages and disadvantages and evaluate - it is evaluating well that is the key to level 5.

Reply 25

leinad2012

15

Original post by ridirahman

Help?

Listen to better music, Rihanna and Kanye West are both **** artists

Reply 26

oaisis

I'm sort of hoping for a poverty/inequality question - that lorenz curve and gini coefficient :biggrin:

Reply 27

Original post by oaisis

I'm sort of hoping for a poverty/inequality question - that lorenz curve and gini coefficient :biggrin:

AGREE!!!! but i doubt it as it has already come up i believe

Reply 28

Original post by stardude8

Yeah all good thanks. I don't know what econ revision you're talking about... :colondollar:

I assume you've done loads then..?
Fiscal policy yep agreed, would be nice for sure.

Mwhahaha lolololololol good to hear Man! Hope you had a good easter break and had some time off from hitting the books

*shrugs shoulder* well... haha... yeaaaaaahhhhhhhh about that lol jk i have done unit 4 and am ship shape with it, just unit 3 labour stuff... urrrrrggghhhh i hate it so much haha i don't get it hahaha

2 wasted chapters imo .... lol u mad :wink:

jk hahahah

Btw, have you managed to find the june 14 papers - i found the unit 3, need the unit 4 tho!

Reply 29

oaisis

Original post by tazza ma razza

AGREE!!!! but i doubt it as it has already come up i believe

yeah it has unfortunately but one can hope

(edited 9 years ago)

Reply 30

Original post by oaisis

yeah it has unfortunately but one can hope

Hmmm agree just think if it does, it'll be an easy essay but grade boundaries will be high :/

Perhaps we are better off with a harder question with lower boundaries :smile:

Reply 31

UkeHarvey

OP

There are so many. I've made loads of flash cards on them, my brain is fried :eek:

Reply 32

Original post by tazza ma razza

Mwhahaha lolololololol good to hear Man! Hope you had a good easter break and had some time off from hitting the books

*shrugs shoulder* well... haha... yeaaaaaahhhhhhhh about that lol jk i have done unit 4 and am ship shape with it, just unit 3 labour stuff... urrrrrggghhhh i hate it so much haha i don't get it hahaha

2 wasted chapters imo .... lol u mad :wink:

jk hahahah

Btw, have you managed to find the june 14 papers - i found the unit 3, need the unit 4 tho!

Labour is cool imo, especially when compared to the other unit 3 parts - I mean types of growth in a firm :sleep:

c'mon.

Why do you need the unit 4 one hmmm...

Reply 33

UkeHarvey

OP

The trade union in a monopsony diagram is rather difficult.

Reply 34

lucy-ox

hey does anyone know of any really good strong evaluation points i could use for perfect competition, monopolies, oligopolies?

Reply 35

lucy-ox

hey, anyone know of any really good strong evaluation points to use for oligopolies, perfect comp, and monopolies?

Reply 36

lucy-ox

edexcel is way easier

Reply 37

Original post by lucy-ox

hey, anyone know of any really good strong evaluation points to use for oligopolies, perfect comp, and monopolies?

Most of the evaluation points seem to be about two things:
-the different efficiencies, which you can use to compared, say, perfect competition with monopoly, and
-the effects on producer and consumer surplus, and from that the overall effect on economic welfare.

Perfect competition
-Productively efficient (producing at the lowest point of ATC curve, where MC=ATC)
-Allocatively efficient (where Price(which is the same as AR)=MC)
-Other efficiencies, such as X-efficiency.
-The suitability of the assumptions made for perfect competition for real markets- for example the absence of barriers to entry.
-Relative to monopoly, perfect competition maximises overall economic welfare(consumer surplus+producer surplus)
-The existence of profit depends on whether you are in the short run or long run.
-Firms can only increase profits by cost-cutting, but with perfect information, firms may not have much incentive to cut costs, unless other firms cut costs.
-The fact that products are exactly the same means consumer actually has very little choice.

Monopoly
-Productively inefficient
-Allocatively inefficient
-Other efficiencies (X-inefficiency)
-But monopoly may be more efficient than competition if there are large economies of scale for the firm in a monopoly.
-May be dynamically more efficient than monopolies, as large profits can be invested back into R&D, but may not be more dynamically efficient because profit maximisation may not occur.
-Loss of consumer surplus and producer surplus leads to deadweight loss.
-The size of these effects depends on the amount of monopoly power a firm holds.

Oligopoly
-As above, look at the different efficiencies.
-Collusion - leads to welfare loss.
-Kinked demand curve model criticism (does not show price determination, and that there will be price changes due to demand and supply shocks at least)
-Size of effects depends on concentration ratios.

Writing this out has actually been good for my revision haha. Hope this helps :smile:

(edited 9 years ago)

Reply 38

Original post by stardude8

Labour is cool imo, especially when compared to the other unit 3 parts - I mean types of growth in a firm :sleep:

c'mon.

Why do you need the unit 4 one hmmm...

yh that is true tbh growth is like firms grow by generating long term revenue flows etc and then they can merge / grow horizontally... job done 10 marks

oh basically to see what topics came up - ie the ones last year definitley won't come up this year! Eg unit 3 last year was market structures mostly and i just wanted to see if exchange rates came up

Reply 39