AQA Economics Unit 4 11th June 2013

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Exogenous and endogenous shocks, demand and supply side - read up on these! Speculative bubbles, political manipulation of the cycle and stock building are all the causes of the economic cycle :smile:

Whays exogenous and endogenous? ? :colondollar:

Reply 461

ineedtorevise127

is there a high chance that BOP will come up

Reply 462

EyesWideShut

One of the advantages of international trade is greater choice for Uk consumers which increases living standards, how can I expand on this further rather just stating that?

Reply 463

munazic483

Original post by EyesWideShut

One of the advantages of international trade is greater choice for Uk consumers which increases living standards, how can I expand on this further rather just stating that?

Add in economies of scale reducing prices thanks to growth of MNC's. On the other hand, this may cause unemployment if the UK firms aren't competitive, and consumers are by and large the same group that compromises workers so if they're losing jobs to international competition because of increased imports then their living standards aren't rising

Reply 464

kelbel1

Original post by dani robin

Whays exogenous and endogenous? ? :colondollar:

Exogenous shocks are those outside the economy impacting it and endogenous shocks are those inside the economy, and can be either demand or supply side :smile:

Reply 465

Oliver1234

Original post by EyesWideShut

One of the advantages of international trade is greater choice for Uk consumers which increases living standards, how can I expand on this further rather just stating that?

Thats basically it for that point ! Trade allows consumers the choice of what to buy from the whole world, and not just what is produced domestically. Consumer welfare is thus increased because some consumers will prefer to buy foreign goods over domestic goods.

Other points are specialisation, economies of scale and innovation through increased competition

Reply 466

EyesWideShut

Original post by munazic483

Original post by Oliver1234

Thanks guys! :smile:

Reply 467

jordanrimmer

Things like inflation, growth, unemployment, exchange rates, bop, then monetary fiscal and supply-side policies all seem like common sense to me and i understand them fine, but international trade/globalisation is like another language.

Reckon its possible to do tomorrows exam without revising it?

Reply 468

Axion

Not looking forward to this one bit. Hardly know my stuff and have had little time to revise

Reply 469

munazic483

Original post by jordanrimmer

I wouldn't recommend it but I think you could probably avoid a question on a topic that you really didn't feel comfortable on, the luxury of choice and all that :smile:

Reply 470

dannywhite

Original post by jordanrimmer

The only things i'm revising are multiplier/accelerator, protectionism, comp/abs advantage, Crowding in/out, Phillips curve and NAIRU :smile:

Reply 471

Exotica

Original post by jordanrimmer

Considering it is quite a large part of the spec, it will be there at some point but don't worry too much since you'll always have an option.

Reply 472

dannywhite

Original post by kelbel1

Exogenous shocks are those outside the economy impacting it and endogenous shocks are those inside the economy, and can be either demand or supply side :smile:

Could you give an example of each please? :smile:

Reply 473

Exotica

It seems quite a lot of us are on the same boat. Hopefully the gradeboundaries would be in our favour!

Reply 474

Lako

Original post by Axion

Not looking forward to this one bit. Hardly know my stuff and have had little time to revise

I'm sure you'll be fine, remember most of it is just common economic sense!

Reply 475

Lako

Would you still get marks for bringing in some analysis from econ3? I was thinking for Fiscal policy, taxation could be used to give people less incentives to consume de-merit goods

Reply 476

Skilled

Original post by EyesWideShut

One of the advantages of international trade is greater choice for Uk consumers which increases living standards, how can I expand on this further rather just stating that?

and it increases consumer surplus, I would put in the diagram showing domestic production and world supply and explaining the diagram, explaining the diagram also takes up some space :smile:

Reply 477

Skilled

Original post by Lako

Would you still get marks for bringing in some analysis from econ3? I was thinking for Fiscal policy, taxation could be used to give people less incentives to consume de-merit goods

It is a synoptic unit so yes, you will definitely get marks for it

Reply 478

kelbel1

Original post by dannywhite

Could you give an example of each please? :smile:

Does no-one else learn endogenous and exogenous shocks?! :wink:

haha! Just me then! And exogenous shock (outside the economy) would be like Hurricane Katrina, something that destroys each demand or supply conditions but we couldn't control her! Endogenous would be inside the economy, so stock-building by firms, political influences on the economic cycle by the Government, speculative bubbles bursting etc x