F581/ F582 Economics June 2013

I linked back to the use of regulations in the case study. They had banned under 18s from using sunbeds etc so I just analysed that regulation and how it may or may not solve market failure. Did anyone else link back?

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Reply 842

Student8

7

Original post by Shaadi Baba

I linked back to the use of regulations in the case study. They had banned under 18s from using sunbeds etc so I just analysed that regulation and how it may or may not solve market failure. Did anyone else link back?

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yeah i did the same

Reply 843

tom_elsey

Personally, I felt the 18 marker was asking you to link the regulation to correcting the information failure which had caused the market failure. I analysed how the information failure had led to external costs etc, and explained how correcting information failure would cause these external costs to be realised, therefore correcting market failure, evaluated it, and then used indirect tax to compare it to regulation, and evaluated this, coming to my overall conclusion where I stated that indirect taxes would not actually directly correct the information failure to correct market failure, but nevertheless would still correct market failure.
Anyone else write something similar?

Reply 844

OP

Original post by tom_elsey

Personally, I felt the 18 marker was asking you to link the regulation to correcting the information failure which had caused the market failure. I analysed how the information failure had led to external costs etc, and explained how correcting information failure would cause these external costs to be realised, therefore correcting market failure, evaluated it, and then used indirect tax to compare it to regulation, and evaluated this, coming to my overall conclusion where I stated that indirect taxes would not actually directly correct the information failure to correct market failure, but nevertheless would still correct market failure.
Anyone else write something similar?

yeaaaaaaaaaa glad someone else wrote something similiar to me ! i even used indirect taxation as my alternative lol

Reply 845

OP

Original post by shaggyk

yeah they wouldn't ask about it in the essay, i wouldn't worry about it too much, just learn the definition of allocative efficiency and what it is generally, i'd also recommend learning about allocative inefficiency briefly.

it's a bloody good thing i took on your advice hahaha - allocative efficiency came up and was worth 6 marks in that paper lol

Reply 846

OP

Original post by iggyDash

Yess! do you think theres marks for that

nope , calculations were not required to score the full marks on the question - however they would have probably helped haha , wished i'd done some now lol.

Reply 847

tom_elsey

Original post by Fas

yeaaaaaaaaaa glad someone else wrote something similiar to me ! i even used indirect taxation as my alternative lol

Pahaha good job we weren't sitting next to each other, would have looked slightly dodgy :tongue:

Reply 848

OP

My thoughts on the exam :

Overall it was a fairly decent exam , however it definitely was not easy haha. I think i pretty much got everything apart from the income elasticites question where i cant see myself scoring more than 2 or 3 / 6 MAX. absolutely bombed it - kept talking about how the income elasticity of demand would increase with a fall in incomes or something like that then said something about normal and inferior goods which im certain is wrong considering nobody else i spoke to talked about that lol.

The essay was very nice for me though , mentioned how the market failure arising from information failure was over-consumption of demerit goods which leads to negative externalities ( as consumers are unaware of the bad points so they will purchase the good ) then analysed why regulation might be effective and ineffective at correcting the market failure - then analysed an alternative ( indirect taxation ) and consistently comparing and contrasting the two then concluded the essay

Anyone write similiar ?

Reply 849

OP

Original post by tom_elsey

Pahaha good job we weren't sitting next to each other, would have looked slightly dodgy :tongue:

who knows we might have been :wink:

hahahaha yeah nah it was a good essay i thought , only income elasticites was troublesome.

What did you put for whether UK was becoming more allocatively efficient or not ? i put that it was , cos the quality and quantity of those destinations in the case study was increasing to meet the rising demand hence consumer satisfaction was being maximised... not sure if thats on the right line though

Reply 850

RJN13

Did anyone use the PED figures that were given in any answers?

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Reply 851

tom_elsey

Original post by Fas

who knows we might have been :wink:

hahahaha yeah nah it was a good essay i thought , only income elasticites was troublesome.

What did you put for whether UK was becoming more allocatively efficient or not ? i put that it was , cos the quality and quantity of those destinations in the case study was increasing to meet the rising demand hence consumer satisfaction was being maximised... not sure if thats on the right line though

That's what I wrote too! And I just added a slight comment about how it's not yet completely allocatively efficient just in case my marker is harsh! Don't tell me you write about tighter regulations and higher oil prices for the decrease in supply too haha?

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Reply 852

shaggyk

5

Original post by Fas

it's a bloody good thing i took on your advice hahaha - allocative efficiency came up and was worth 6 marks in that paper lol

haha its a pleasure, although you didn't have to use allocative efficiency in the context i put it in, for the case of this exam anyway :tongue:

Reply 853

OP

Original post by tom_elsey

That's what I wrote too! And I just added a slight comment about how it's not yet completely allocatively efficient just in case my marker is harsh! Don't tell me you write about tighter regulations and higher oil prices for the decrease in supply too haha?

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erm.... yeah hahahahahahahahahahahahaha this is weird :biggrin:

Reply 854

OP

Original post by shaggyk

haha its a pleasure, although you didn't have to use allocative efficiency in the context i put it in, for the case of this exam anyway :tongue:

nah true haha ! did have to define it though - i mentioned something about consumer satisfaction being maximised ( even drew a diagram showing demand and supply being at equilibrium point ) - is that basically what it is ?

Reply 855

hello my name is

Original post by tom_elsey

Pahaha good job we weren't sitting next to each other, would have looked slightly dodgy :tongue:

i wrote abot indirect taxes too xD is that good thing or a bad thing :confused:

Reply 856

Akak

What did people draw for the demand and supply diagram? It said that demand only changed to a response in price so I drawed supply to the left and no change in the demand curve. Is that right?

Reply 857

OP