[AQA] - Economics Unit 1 January 15th - [2013]

I think consumers because the price decreases a lot more than if it were elastic?

Thanks

aw man. im scared.

for the 5 mark definition, do you define and give example or just define is enough?

Hi
New to SR,
has anybody got any tips on how to improve and get top marks on the Economics unit 1 multiple choice?

Hi, I'm new to SR, my exam is tommorrow and i wanted to ask a question

How would you structure a part Dquestion? [25 marks]

Thanks

A "perfect" essay structure varies from question to question, but the impression I have got from markschemes and from my teachers is that it goes something like this:

INTRODUCTION - Define all relevant terms to the problem you are discussing. Explain the problem you are discussing.

PARA 1 - Talk about what is suggested by the question - if there is anything suggested by it. If the question is along the lines of "Evaluate the view that government should use a minimum price control to tackle issues arising from high consumption of alcohol", then start by explaining (briefly) what a minimum price control is, and then evaluate its usefulness to the situation. Remember to draw relevant diagrams to illustrate your points.

PARA 2
PARA 3
(PARA 4 - Doing four is probably optional and down to how much time you have) - all of these paragraphs should be devoted to considering alternative economic policies that a government could use, such as taxation or more informal policies like age limits or advertising. Remember to keep drawing relevant diagrams, there's no such thing as having too many.

IMPORTANT: Evaluate each policy in a balanced manner; conclude each paragraph with something like "Policy X may be considered effective because Y, however a government may wish to be cautious when implementing policy X, because Z"

CONCLUSION - The conclusion is one of the most important parts of the essay, because it is where you are judged on your ability to understand how economic policies work on the whole. You need to demonstrate the same balanced judgement that you did in the evaluation at the end of each middle paragraph. I have found that ending my conclusion with something like "A government is likely to implement policy X in the short term, as it is more privately beneficial; but should a government wish the economy to achieve efficient allocation of resources, they may have to consider introducing policy Y in the short term, which would help move demand for alcohol to the socially optimal level of output and consumption" usually gets very good marks. As long as you stay balanced in your conclusion and demonstrate a sound ability to pull it all together, you should do okay.

Good luck.

Does anyone know where I can get the June 2012 Paper? I can't find it anywhere

there u go

Who benefits more in a subsidy if demand is inelastic consumers or producers?

The consumers will benefit more, because the firm will pass on the subsidy to consumers, which won't effect demand because it's inelastic.

So consumers are getting lower prices, whilst the producer will be getting the same revenue with the subsidy, as they would without it.

This is assuming that whole subsidy is passed on to the consumer.

What about if demand is more elastic will the benefits be passed on to the producers?

They'll both benefit from it because the producer will pass the subsidy on to the consumer, as demand is responsive to price, therefore by passing on the subsidy consumers get lower prices, whilst the producer receives more revenue.

You might want to know taxes as well.


When demand is inelastic, all the tax will be passed on to the consumer so it doesn't affect the producer at all, and consumers will lose out.

When demand is elastic, taxes will be absorbed by the firm because demand is responsive to price, so firms will lose out.