OCR Economics F582 (new spec.) DISCUSSION.

I mentioned the Phillip's Curve in the last Question but didn't draw it out, would i lose marks? I also didn't draw the AD and AS curves :|

For Costs of Inflation i reffered to unemployment and the disposable income increasing/decreasing. Loss of marks once again?

For the first question on paper one, did anybody put Capital and Labour for the Factors of Production for Air travel?

I thought it was 3 to be honest... but I'm probably wrong.

For paper 1, I put labour and land. I wasn't too sure because I read through the passage like 3 times and couldn't see where it stated a factor of production -_-.

I mentioned the Phillip's Curve in the last Question but didn't draw it out, would i lose marks? I also didn't draw the AD and AS curves :|

For Costs of Inflation i reffered to unemployment and the disposable income increasing/decreasing. Loss of marks once again?

For the first question on paper one, did anybody put Capital and Labour for the Factors of Production for Air travel?

What did you put for the determinants of demand for air travel? I blanked completely and put Cost and Trends :|

My logic was you need Capital to buy the Aircraft, the Buildings etc, and you need the Labour to pilot aircraft and man the terminals.

What did you put for the determinants of demand for air travel? I blanked completely and put Cost and Trends :|

The Phillip's Curve shows the inverse relationship of Unemployment and Inflation, so I thought i would include it as we had to show the effect of AD upon both of those factors.

Our invigilator told us all of our work had to be in a single booklet and we were not allowed extra paper so i had to cram all of my writing into two pages, didn't leave me room for a diagram sadly ):

That's so not fair. The 2 pages isn't enough - especially for a diagram! I went onto 2 extra pages..

For the supply side one.
rise in government spending on education and training raises labour productivity and skills so higher quality of labour. This increases the price and quality competitiveness of domestic goods. So demand for exports and hence export revenue is likely to increase.

comments:
takes a long to have effect - takes time for people to come through education process and enter labour force.
more exports generates income and some of this may be spent on imports. If increases in exports are matched by increases in imports, the effect on the current account will be neutral
can be exspensive, government may have to reduce spending on eg healthcare
Full marks? Got first question wrong but apart from that I cant see where ive gone wrong

Are teachers aloud to see the paper? In January none of mine saw them until well after the exam

But basically:
- Increases in AD increase output as long as there is spare capacity
- More people will need to be employed to make the new output
- At the elastic bit of the AS curve, there will be little or no inflation
- As the economy nears full capacity the inflationary danger increases.

It seems theres a lot of very clever people who have done very well on this exam do you think this may be reflected in higher grade boundaries?

but uno the last question the wording was abit funny. although i tlked about expansionary fiscal.. run by budget deficit and expansionary monetary policy.. how it can onli solve cyclical unemployment not structual and frictional etc etc. how these expansionary polices have trade off cause it casues inflation etc etc. blabbed on.. although didnt write as much as i would of liked. wrote 3 and a bit sides..

yh boundaries r most likely to be high. you needed 47 OUT OF 60 to have got an A in january