AQA Economics Unit 4 11th June 2013

In all the mark schemes it says 'criteria for measuring economic consequences'.
What is the criteria?!

Globalisation came up in Jan though in for the context.

An Eu question hasn't come up for a while.

Just curious here, does anybody else expect a question on whether the UK should leave the EU and join NAFTA (North American Free Trade Agreement)? And if so, what would be some good points in answering this question? My Econ teacher said that she can see it quite possibly coming up (she took a guess on the Unit 2 questions this Summer and was right on the dot) any ideas? Thanks!

Stuck on EU, can anyone suggest an essay structure - pros/cons & possible evaluation to the question:

"Assess the impact on the UK macroeconomic performance if it were to leave the European Union"

Pros are basically the pros of protectionism
Will be able to nurture infant industries by setting their own tariffs instead of free trade between EU states which in the long run could lead to an improvement in the balance of payments since there will be more firms to export as well as lower unemployment. Evaluation could be that they are simply propping up inefficient firms/stifling competition so prices will be higher

Could lead to macroeconomic stability - focusing on domestic production rather than importing from the EU can help economic growth/employment

Will no longer have a common external tariff with non EU members so trade may prosper with those countries thus boosting exports and therefore AD and employment (depends on quality of our exports/do these countries really want to buy them?)

Cons
Could in fact lead to a worsening of the balance of payments since around 40% of our exports to the EU. If we leave the EU then the tariffs in place against us may make our exports too expensive and so the EU will source from elsewhere. Evaluation could be that it won't matter too much if we are able to capitalise on the BRIC economies and export to them instead

Leaving the EU could result in a smaller market for our exporters therefore leading to fewer economies of scale which will push up production costs. Workers may be laid off as a result so unemployment will rise


The consequences of leaving the EU are quite theoretical, nobody really knows what will happen

Just curious here, does anybody else expect a question on whether the UK should leave the EU and join NAFTA (North American Free Trade Agreement)? And if so, what would be some good points in answering this question? My Econ teacher said that she can see it quite possibly coming up (she took a guess on the Unit 2 questions this Summer and was right on the dot) any ideas? Thanks!

So she guessed all the questions? What a fluke? What are her other prediction

Posted from TSR Mobile

Yeah, we kinda just asked her what she thought it could be on and she was right, a fluke, but lucky nonetheless :P

She mentioned today the possibility of sustainability of economic growth and whether different measurements of economic welfare are good indications of standard of living such as GDP/capita or HDI, etc.

Another speculation, but I'm pretty much just revising everything at this point haha!


Posted from TSR Mobile

But then how is this a protectionist policy? It encourages trade? If domestic producers would pay more for a product then wont this encourage importing? Thanks