AQA Economics Unit 4 11th June 2013

Original post by MHay

Not really a fail, para's 1,2,4 and 5 should get you marks.

Probably around 10 marks because most of my essay was about them leaving like it will benefit the poor as uk will be unregulated and don't have to pay CAP this means more disposable income generating consumption shifting AD resulting in economic growth

Reply 724

Parkway Drive

9

Original post by Cooke

I did the same questions. What did you put?

Three factors I put was:
Quality (non-quantitative)
Cost of production (quantitative)
Exchange rate

Then for 10:
Intro - SSP definition - showed it with a graph shift in LRAS right

first point - education and training... blah blah...
EVAL - very long term and depends on quality of education and training.
Also, a decrease in the price level will only improve it in the long run - BOP J curve

second point - subsidy to firm for R&D... blah.. better quality
EVAL - subsidy can cause inefficient monopolies and it is very costly. If there is a public sector net debt, then this hardly the best option.
Also is tax is increased to fund the subsidy, then this could cause brain drain/disincentive to work...

I wanted to put a third point but didn't have time. I was gona say reduce trade union power...

Conclusion was that SSP are good, such as education and training, but instead of a subsidy to firm, maybe just have tax relief for R&D. Also, I was saying that since the UK has a well educated workforce, its unlikely the the price level is the real issue, its then probably quality.
Also, I mentioned alternatively they could use demand side policies in the short run, e.g. the MPC using the interest rate to influence the exchange rate. Finally I said the use of both would be best.

What about you?

Reply 725

Anybody worried about the fact that they mentioned leaving the EU, don't be. If you related leaving the EU to developing stronger links with BRIC countries and how that might boost export-led growth you will still pick up marks.

Reply 726

Parkway Drive

9

Original post by kelbel1

Um, yes, the 10 marks was on unemployment, and the 25 mark was on whether the EU is the best hope for the UK considering the lack of growth- I know what question I did! :smile:

What did u write for the unemployment bit?

Also, what did u say for the context EU question?

Reply 727

Original post by charlie7wright

Anybody worried about the fact that they mentioned leaving the EU, don't be. If you related leaving the EU to developing stronger links with BRIC countries and how that might boost export-led growth you will still pick up marks.

Yes I said that if they leave they could still trade in the EU like Switzerland and Norway and I think I mentioned trade with Brazil and China

Reply 728

Axion

15

Why did everyone do the EU context :confused:

the global context was very nice

Reply 729

Original post by qr95

Yes I said that if they leave they could still trade in the EU like Switzerland and Norway and I think I mentioned trade with Brazil and China

As long as you related it to an increase in export-led growth its fine. For example you could have mentioned that if the UK left the EU it could make better use of its comparative advantage in financial services and export to emerging economies.

Reply 730

newenglandpats

for the eu question would this be ok?

defiintion economic growth and macroeconomic policy

referred to data

Then i talked about how being part of eu could help boost UK demand through increased exports and how it could cause growth to slow down

Then how being part of eu allows UK firms to access skilled workforce from eu which can boost growth but can also cause falling consumption as they could send money back to own country. Also could cause unemployment of uk workers.

Then talked about exchange rate and hot money flows.

Then it could be better for UK to reduce reliance on EU trade and trade more with BRIC countries.

Evaluation.

Reply 731

Original post by Axion

Why did everyone do the EU context :confused:

the global context was very nice

I thought the EU one provided more scope and allowed me to talk about everything I was good at. What was the global context 25 marker?

Reply 732

Ecomax

Original post by Parkway Drive

Three factors I put was:
Quality (non-quantitative)
Cost of production (quantitative)
Exchange rate

Then for 10:
Intro - SSP definition - showed it with a graph shift in LRAS right

first point - education and training... blah blah...
EVAL - very long term and depends on quality of education and training.
Also, a decrease in the price level will only improve it in the long run - BOP J curve

second point - subsidy to firm for R&D... blah.. better quality
EVAL - subsidy can cause inefficient monopolies and it is very costly. If there is a public sector net debt, then this hardly the best option.
Also is tax is increased to fund the subsidy, then this could cause brain drain/disincentive to work...

I wanted to put a third point but didn't have time. I was gona say reduce trade union power...

Conclusion was that SSP are good, such as education and training, but instead of a subsidy to firm, maybe just have tax relief for R&D. Also, I was saying that since the UK has a well educated workforce, its unlikely the the price level is the real issue, its then probably quality.
Also, I mentioned alternatively they could use demand side policies in the short run, e.g. the MPC using the interest rate to influence the exchange rate. Finally I said the use of both would be best.

What about you?

I did the same question, different structure though

First talked about effect of Supply side policies (Reduction in Corp tax, Deregulation, Improvement in the occupational mobility of labour) on the balance of trade and evaluated, stating it has a positive effect blah .. but long term and does not solve anything in the short run, leads to reduction in living standards in the short run and evaluated with macro eco indicators

Then said however alternative policies could be used, i.e Expenditure Switching, Expenditure reducing .. with Evaluation

Then concluded that supply side policies are effective in improving the balance of trade in goods .. could reduce structural deficit, but there are drawbacks in the short run (relating to current government policy), also stating that expenditure switching and reducing policies can have some success in the short run.
Then as a last point questioning whether the deficit in the balance of trade is a bad thing .. explaining that the total deficit is 3% of GDP, the deficit is structural though ..)

Probably other stuff but thats all i can remember, rushed for time a bit in evaluating expenditure switching policies

Reply 733

jonses

Original post by charlie7wright

I thought the EU one provided more scope and allowed me to talk about everything I was good at. What was the global context 25 marker?

I preferred the global context question too. The 25 marker was about Middle East and North African countries, asking to what extent the UK should be concerned by a strengthening of the economic importance of these countries. Pretty open, lots of usable points in the data.

Reply 734

Original post by charlie7wright

As long as you related it to an increase in export-led growth its fine. For example you could have mentioned that if the UK left the EU it could make better use of its comparative advantage in financial services and export to emerging economies.

Is this orite tho I said leaving the EU will create jobs in the UK because they are not under regulation because it creates jobs there is more money in the UK and it's not draining out of the economy which leads to economic growth

Reply 735

Original post by qr95

Is this orite tho I said leaving the EU will create jobs in the UK because they are not under regulation because it creates jobs there is more money in the UK and it's not draining out of the economy which leads to economic growth

I'm not sure on that point because that is more based around the arguments for leaving the EU as a whole rather than leaving it to have better trade with BRIC and boost exports.

Reply 736

kelbel1

Original post by Parkway Drive

What did u write for the unemployment bit?

Also, what did u say for the context EU question?

Ooyar, can't really remember if i'm honest! For the EU, I literally went through the extract, highlighted everything I need and used all of it, didn't need to think of anything because it was all there! x

Reply 737