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

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I said Marginal Private Cost is the Marginal Social Cost minus the Marginal External Cost

I forgot about max/min prices on 25 marker but wrote quite a bit about taxation.

Did anyone say that junk food is price inelastic for a lot of people?

Yes I did say that for my evaluation! But then I said the government still raises revenue and this can be used to subsidise merit foods like fruit!! And I said the min price would create black markets!

Reply 241

ineedtorevise127

Original post by jamjar24

i put:
-Banning it would be bad because it would lead to elimination of some social benefit
-Regulating supply of junk food
ect

That seems good would it be relevant to talk about taxing fatty foods and subsidizing cheaper foods thats what I put .
I couldn't think about anything else

Reply 242

nadster

Original post by tryingtolearn94

there was a weird one about which should the govt build, railways, roads hospitals?

and one about the production possibility frontier, which was like if you add one more car is there any opportunity cost? <-- what was the answer for that?

I don't remember what I put for the first one you mention, but I think I put greater at X than Y for the opportunity cost one.

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Reply 243

mahatma ghandi

Original post by ineedtorevise127

cant remeber what did you put

Banning imports, but I was completely torn so it was a 50/50 guess

Reply 244

Julia95

Original post by Jatt.B

Junk food black market would be a funny thing though. xD

Reply 245

Son234

Original post by nadster

I don't remember what I put for the first one you mention, but I think I put greater at X than Y for the opportunity cost one.

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I put the second one it said something along the lines of Y decreases can't remember fully

This was posted from The Student Room's iPhone/iPad App

Reply 246

Son234

Original post by mahatma ghandi

Banning imports, but I was completely torn so it was a 50/50 guess

What was actually the question? Again and the close answers?

This was posted from The Student Room's iPhone/iPad App

Reply 247

bestfriends33

For one of the MCQs did you get the granting of a patent to a pharmacuetical industry? :smile:

Reply 248

username614675

Original post by Julia95

Junk food black market would be a funny thing though. xD

Haha true. Can you imagine all these morbidly obese black market traders in alley ways etc..... :P

Reply 249

ineedtorevise127

Original post by bestfriends33

for one of the mcqs did you get the granting of a patent to a pharmacuetical industry? :smile:

yes that was defo one!

Reply 250

Dr.Pwepper

Original post by bestfriends33

For one of the MCQs did you get the granting of a patent to a pharmacuetical industry? :smile:

Yeah that's right. That was the monopoly power one right?

Reply 251

KiMika

In my 25mark question (context 2) I talked about:

1. Taxation- not very effective because of the inelasticity of demand, but it is good to collect revenue, which can the government then re-invest to provide more information about the effects of junk food

2. Subsidies-Could encourage people to buy more fruit and veg, also PED is more elastic, so it can work, but to fund subsidies there is an opportunity cost, so maybe they have to reduce spending in one area (e.g. healthcare) to fund the subsidies.

3. Free market view- They believe people make their own choices, so no point for intervention, because that'd just result in government failure, but if there is no intervention, then people will keep consuming junk food, which could have serious consequences in the future: e.g. 1. unhealthy work force (bad for economy) 2. more investment will be needed for healthcare)

Reply 252

nadster

Original post by bestfriends33

For one of the MCQs did you get the granting of a patent to a pharmacuetical industry? :smile:

Yes! And it's defo right too because that question has come up before! :smile:

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Reply 253

AlexanderStuart

Original post by jamjar24

could someone please tell me what they put for the 25 marker for the second question. About gov. intervention and junk food. PLEASE!!!!!

I started off by defining government intervention and free markets, then drew a negative externality diagram showing the MPB were greater than the MSB and referred to unhealthy food as a demerit good, then defined it.

For the 'for' argument I said that government's should intervene with taxation, regulation and subsidies because pushing the price up would reduce demand and they could regulate the amount of unhealthy food people buy in bulk - l also linked the subsidising of healthy food in with the taxation of unhealthy food and said using them together could be more effective. I also detailed the negative points of each, e.g that taxation would penalise the people that do not exploit unhealthy food and have health problems etc whilst regulation may not be practical and people could find loopholes, leading the govt. failure.

For the 'against' argument, I argued that only a large minority (26% as seen in one of the extracts) were obese, so therefore taxation and regulation are a blanket method of intervention that effects everybody, as well as the 74% of other people who do not abuse the market etc. I also said that a lot of unhealthy goods are price inelastic, with the tax having to be almost 20% to see any significant change in demand - this is an obscene amount of tax and would not go down well with consumers, causing discord etc, and that a subsidy on healthy food would not neccessarily encourage obese people to diet etc.

In my evaluation, I said that I was for ? intervention, and referred back to my previous points - before saying that a combination of taxation and subsidies was the answer, but it all depended on the price elasticity of the goods etc. and referred to how it could fail and become government failure.

I think I did a pretty good job tbh, nervous for my results now!

Reply 254

nadster

Am I the only one that did the congestion question? :/

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Reply 255

AlexanderStuart

Original post by bestfriends33

For one of the MCQs did you get the granting of a patent to a pharmacuetical industry? :smile:

Yes! Knew that from Business Studies, it is illegal to patent a medical discovery etc. (i think anyway)

Reply 256

username614675

Original post by Connie

Not sure you guys should be discussing this! Read the red warning notice at the top of the page!!

:O

I guess the fact that I'm technically "new" here must mean something? Should I delete my posts??

Deleted them

(edited 11 years ago)

Reply 257

ineedtorevise127

Whats the likely grade boundaries for a C, B and A.
Personally I think this exam was harder than Jan12
Jan 12 was easier compared to today's one

Reply 258

Skilled

Anyone did context 1?

I did it and thought that its wasn't too bad.....

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Reply 259

mahatma ghandi

Original post by Son234

What was actually the question? Again and the close answers?

This was posted from The Student Room's iPhone/iPad App

What would make supply of a primary good more elastic, was something like the quesiton.
And I think it was between restricting imports, or something about levels of stock.

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

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