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

theres a specific word like 'boxed in' tax but can't quite remember what it's called?

basically a government raises tax revenue on say environmental taxes, then reinvests this tax straight into environmental projects.

does anyone know the specific word for this type of tax? (I know it's not necessary but just can't remember what you call it)

hypothecated tax which is not required for ECON3 but OCR F584

It's definitely a difficult part of the essay - here is a guide for what to do to get a good conclusion, although I'm sure there are ways you could improve on my suggestions.

For a conclusion, begin by directly answering the initial question, by repeating the initial wording in a sentence with your decision.

Then give a reason for the decision - this can be done by saying the advantages outweigh the disadvantages and briefly mentioning what those are again in one sentence, and/or by saying that the current circumstances of the UK economy (use statistics) mean that his should/shouldn't happen (negative output gap, low inflation, spare capacity in the labour market etc.)

After that, give two evaluative comments using the phrase 'depends on' (e.g. short/long run, size of effect, global economic conditions, etc.).

I'll give an example conclusion to this question - 'should the UK Government be running a budget deficit?'

To conclude, the UK Government should be running a budget deficit, because the UK economy is currently in a negative output gap (give statistic), so there is insufficient aggregate demand with lower consumption and investment which must be made up for with a budget deficit, increasing the government spending part of the AD equation. Having high amounts of spare capacity in the economy and with inflation at 0% CPI, a budget deficit is unlikely to result in a high rate of inflation. However there must be other considerations when deciding whether running a budget deficit is viable. It depends on the size of the deficit - too large a budget deficit might lead to excessive debt levels. The effect of a budget deficit on the UK economy also depends on whether it is allowed to continue in the long run, in which case crowding out is more likely to occur, or the deficit only remains in the short term.

This is the way I do it most of the time and it seems to work well, but by no means is it perfect - hopefully there are others who can help us improve these final judgements. Hope this helps

x

It's definitely a difficult part of the essay - here is a guide for what to do to get a good conclusion, although I'm sure there are ways you could improve on my suggestions.

For a conclusion, begin by directly answering the initial question, by repeating the initial wording in a sentence with your decision.

Then give a reason for the decision - this can be done by saying the advantages outweigh the disadvantages and briefly mentioning what those are again in one sentence, and/or by saying that the current circumstances of the UK economy (use statistics) mean that his should/shouldn't happen (negative output gap, low inflation, spare capacity in the labour market etc.)

After that, give two evaluative comments using the phrase 'depends on' (e.g. short/long run, size of effect, global economic conditions, etc.).

I'll give an example conclusion to this question - 'should the UK Government be running a budget deficit?'

To conclude, the UK Government should be running a budget deficit, because the UK economy is currently in a negative output gap (give statistic), so there is insufficient aggregate demand with lower consumption and investment which must be made up for with a budget deficit, increasing the government spending part of the AD equation. Having high amounts of spare capacity in the economy and with inflation at 0% CPI, a budget deficit is unlikely to result in a high rate of inflation. However there must be other considerations when deciding whether running a budget deficit is viable. It depends on the size of the deficit - too large a budget deficit might lead to excessive debt levels. The effect of a budget deficit on the UK economy also depends on whether it is allowed to continue in the long run, in which case crowding out is more likely to occur, or the deficit only remains in the short term.

This is the way I do it most of the time and it seems to work well, but by no means is it perfect - hopefully there are others who can help us improve these final judgements. Hope this helps

When you write a final judgement, it's ok to say both yes and no the the answer right?

so basically, 'in the short term yes.... Then explain why, but in the long term or in a certain circumstance I think no....... And explain why.

Its ok to do this right? Or do have to come to either yes or no?

Depends on the question.

example?

I think generalising is a good strategy for AS but for A2 I would suggest sticking to specific concluding remarks depending on the question.
e.g. A question related to privatisation: whether or not privatisation will be beneficial for the industry or consumers depends on the effectiveness of regulatory bodies in preventing anticompetitive practices.............
that's my view

Of course the points made vary depending on the essay title - I'm just trying to give a framework that can be applied to most essay titles - because people often don't know what to put in and end up repeating previous material without evaluating. I guess the main points about a conclusion are that there must be a final judgement backed up by good reasoning and further evaluative comments. Do you have any other specific ideas for unit 3?

Evaluate the view that competition policy is never necessary because, in the long run, market forces will ensure that monopolies cannot abuse their power and will not last
Conclusion: Need for intervention will depend on type of Monopoly (Natural Monopoly) and behaviour of monopolies (engaging in illegal/anticompetitive practices ) + some knowledge of the role of the CMA

Can someone explain what this means:

'Governments can create an internal market', its on the specification but cant find anything for it?

Can you provide more information about that quote? Where on the specification is indicated? What else is written?

Can you provide more information about that quote? Where on the specification is indicated? What else is written?

I think it's this -

Public Ownership, Privatisation, Regulation and De-regulation of Markets

Candidates should understand the arguments relating to such policies, be awareof their application in the United Kingdom, and be able to assess their effects oneconomic performance. They should also understand competitive tendering, thepossibility of creating internal markets for the provision of public sector servicessuch as education and health care, and public private partnerships (PPPs).

I think it's referring to things like the Private Finance Initiative?