AQA A2 Economics Unit 3 (ECON3) 20th June 2016 OFFICIAL THREAD

I think I am familiar enough with market failure, government intervention and gov failure but only because I resat AS unit 1

Can anybody tell me if there are any really important changes or additions to mkt failure/gov failure at A2 compared to AS, don't wanna be writing as AS standard essay at A2 but I can't see much difference in the questions :frown:

Reply 183

cutelady

10

I don't understand when they say "leave it to market forces" in the questions, can anyone help??

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Reply 184

Tiffyx

5

how to write a conclusion? Is there any example? My teacher said that conclusion is really important for the whole essay but i didn't know how to write a good conclusion :frown:

Reply 185

I just realised, I'm getting super confused with whether we're talking about 3rd degree or second degree for TIMES so for example booking early/late - that's second degree???? and then offpeak etc- that's 3rd degree? or are they both third degree

Reply 186

Jamyes

Original post by Tiffyx

how to write a conclusion? Is there any example? My teacher said that conclusion is really important for the whole essay but i didn't know how to write a good conclusion :frown:

https://www.youtube.com/watch?v=2dDPjUtYUnE

hes amazing

Reply 187

ozzie2

12

Original post by Kitkat5

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.

how can market forces stop monopolies abusing their power though?

Could you talk about contestability, so there may be a monopoly but there is potential for competition so in the long run the threat keeps prices low so firms don't exploit consumers with high prices and low output?

Reply 188

HCLx

Original post by Kotomine

Ahh yeah of course, thanks! Since you seem to know about it, another q, what do you think would be some good evaluation points for the CBA essay?

CBA has 3 steps: Identifying, quantifying and evaluating (this is analysis to start with)

The evaluation is basically assessing these methods that are used for CBA in terms of pros and cons of use

Disadvantages of CBA:
-Public sector may be more likely to involve experts to make value judgements (expertise) (political spin)
-difficulty quantifying some concepts e.g. noise pollution to residents
-estimating the probability of something happening
-cost of implementing cba
-Time
-Sources involved may be biased

Advantages of CBA:
-Biggest advantage means all social costs and social benefits are taken into account which may not occur in the private sector (only private costs are accounted for)
- Monetary values attached to ease decision making -Discount rates are used to calculate a NET PRESENT VALUE of the project -Allows room for sensitivity to be discussed e.g. wildlife destroyed may be a very sensitive issue to some-General public given more information (no asymmetic info)-Mitigating market failure and government failure so people are aware of risks

Then you could sum it all up by saying that if the costs > benefits the project technically shouldn't go ahead and if benefits > costs then it shoulddespite this CBA is a very outdated technique so the results may not show the real net present values and it may be best to use other methods

(edited 7 years ago)

Reply 189

lolkenneth12

6

i gladed that Ucl offered me a AAB offer but i am still nervous about tmr :s-smilie:

Reply 190

lool i'm growing to love you guys!! you're like my family now lmao. Can we keep this as an econ4 thread too? so we can get started in ADVANCE and not the day before this time :grouphugs:

(I accidentally clicked on the emoji twice but the amount of time i spent finding these is probs enough to cram a whole topic. p.s I was looking for the laughing emoji but :'( )

Reply 191

BirdIsWord

OP

17

Original post by Kitkat5

lool i'm growing to love you guys!! you're like my family now lmao. Can we keep this as an econ4 thread too? so we can get started in ADVANCE and not the day before this time :grouphugs:

(I accidentally clicked on the emoji twice but the amount of time i spent finding these is probs enough to cram a whole topic. p.s I was looking for the laughing emoji but :'( )

Ill make one after the exam with the 'official thread' title

Reply 192

Anymorefor123

Original post by HCLx

I think I am familiar enough with market failure, government intervention and gov failure but only because I resat AS unit 1

Can anybody tell me if there are any really important changes or additions to mkt failure/gov failure at A2 compared to AS, don't wanna be writing as AS standard essay at A2 but I can't see much difference in the questions :frown:

To be absolutely honest no not really .. The only difference is government failure and unintended consequences .

Same old intervention methods e.c.t evaluate them .. The usual :smile:

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Reply 193

HCLx

Original post by Kitkat5

I just realised, I'm getting super confused with whether we're talking about 3rd degree or second degree for TIMES so for example booking early/late - that's second degree???? and then offpeak etc- that's 3rd degree? or are they both third degree

For times its second degree because the quantity demanded changes e.g. low cost airlines will charge a lot less when it's last minute simply because they need to fill up the space in the aircraft so they are utilising all resources to full capacity

Third degree is where consumers are separated based on some kind of characteristic e.g. age so child vs adult fares on trains. This also requires no market seepage e.g. an adult cannot sell their ticket to a child because they simply are not an adult and the train company could pick up on this

Reply 194

Jamyes

Original post by Anymorefor123

To be absolutely honest no not really .. The only difference is government failure and unintended consequences .

Same old intervention methods e.c.t evaluate them .. The usual :smile:

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do you think this will come up

Reply 195

Original post by HCLx

For times its second degree because the quantity demanded changes e.g. low cost airlines will charge a lot less when it's last minute simply because they need to fill up the space in the aircraft so they are utilising all resources to full capacity

Third degree is where consumers are separated based on some kind of characteristic e.g. age so child vs adult fares on trains. This also requires no market seepage e.g. an adult cannot sell their ticket to a child because they simply are not an adult and the train company could pick up on this

mm i like your explanations. make a quick revision guide for me? :')) i'm pretty sure offpeak/train ticket times are 3rd degee though because from early mornings or whatever if you've got work you have not choice but to get that ticket as demand is inelastic

Reply 196

Alextaylor6

14

i might just kms at this point

Reply 197

Tiffyx

5

Original post by Jamyes

https://www.youtube.com/watch?v=2dDPjUtYUnE

hes amazing

Thank you! Thats really useful :smile:

Reply 198

What are your main arguments on how to make a market more competitive and what are your main arguments on how to make it more contestable since they are different things.

Also what are your main arguments on government intervention in provision, in externalities and in public/merit/demerit goods? (they all have different arguments obvs) . How would you guys organise these in different paragraphs?

Reply 199