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AS Economics AQA unit -1 (2014 May)

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Original post by KAKAKA17
I only wrote about that too so don't worry! The question specifically asked something along the lines of 'Evaluate the view that the government SHOULD or SHOULDN'T intervene...' it didn't state anything like evaluate the best way of intervention or policies that the government should use etc. so we should be fine :smile:


Imagine a question asking 'Evaluate the view that humans need food and drink in order to survive', you would talk about the pro's and cons of them, but you wouldn't necessarily need to say what types of food and drink they need because the question doesn't ask that :cool:



Original post by FlowC
I've been panicking all day, I feel quite relieved knowing there's someone on same boat as me..!!! thank u for replying


Incorrect. You are meant to analyse and evaluate a few policies available to the government with intervention. Your evaluation should've been used to critique specific interventions. Your conclusion should be an over-all review of the proposed question.

No point worrying about it now. All the best with unit 2. It's generally regarded as a bit simpler.
Original post by Liberalists
Incorrect. You are meant to analyse and evaluate a few policies available to the government with intervention. Your evaluation should've been used to critique specific interventions. Your conclusion should be an over-all review of the proposed question.

No point worrying about it now. All the best with unit 2. It's generally regarded as a bit simpler.

the mobile phones question last year was similar. The one which said "evaluate the case for and against government intervention in the way mobile phones are manufactured and used". You could get 25 just arguing the for and against without mentioning policies. In fact, if you forgot the for and against and only included policies then you got capped at 16. There is no cap for just the for and against though as that is the essence of the question
Original post by arsenalfc97
the mobile phones question last year was similar. The one which said "evaluate the case for and against government intervention in the way mobile phones are manufactured and used". You could get 25 just arguing the for and against without mentioning policies. In fact, if you forgot the for and against and only included policies then you got capped at 16. There is no cap for just the for and against though as that is the essence of the question



I've just had a look at the mark scheme for last years paper and it backs up what you just said! So it looks like I can only hope that the mark scheme for today's exam is similar in ways to last years one! Hopefully the grade boundaries are lower this year too because ,for me anyway, it seemed to be a tricky exam in general
Reply 63
Original post by Liberalists
Incorrect. You are meant to analyse and evaluate a few policies available to the government with intervention. Your evaluation should've been used to critique specific interventions. Your conclusion should be an over-all review of the proposed question.

No point worrying about it now. All the best with unit 2. It's generally regarded as a bit simpler.


I guess your right bcos a 25 marker will need to have policies.. Hmm :frown: I just hope I do better on unit 2 exam
Yeah, kind of messed up here. Went with Context 2, think I did alright on the multiple choice, I reckon about 19/25, for private goods I missed out the fact they had property rights, but basically mentioned they were supplied under the market mechanism and explained that they had rivalry and excludability, don't know how many out of /5 that will get.


Question 2 compared all 3, giving all 3s highest point then all 3s lowest point.


Question 3 defined supply/demand talked about an inward shift in supply as well as briefly mentioning an inward shift of demand, kind of somehow managed to screw the graph up to some extent though (don't know how).


Question 4 - this was where I really messed up without properly completing a graph due to shortage of time. Managed to talk about the newspapers / internets news being a merit good. Spoke about how subsidies would increase supply, would increase the consumption of newspapers thus moving it to a more socially optimal level.

Then added that this was an expensive form of intervention. Also only briefly mentioned that the supplier might not pass on the subsidy, meaning consumption would not increase, producer surplus would be greater than consumer surplus.

Lastly pointed out that most news is accessed from the TV anyway (in the case of the US) according to Extract A. So the effect of a subsidy may not actually make much difference towards how much people educate themselves upon news.

Then had to do a really short conclusion basically saying I think there shouldn't be a subsidy as its expensive and most people already get their news from the TV (according to Extract A)

So yeah my question 4 was pretty poor with a missing graph, if I could get just over 10 like 12 or so on it I'd be happy as my last few paragraphs were very short.
Original post by H0PEL3SS
Can't be unitary, otherwise the incidence of tax is 50%, when it asked for 100% IOT


No because unitary means if they pass on 100% tax, the quantity demanded will change by the same proportion so therefore there is no loss. Perfectly elastic they would pass on 0. and still noting to do with supply so I think it is unitary elasticity of demand.
I put perfectly inelastic for Q25 but then again it was pretty much a guess.
So which context did you guys pick and what did you write for the essay question(really want know about those that picked context 1!)? If you picked context 1, what did you write for the essay question?

I'm now starting to kinda worry seeing as I didn't talk about any specific type of gov't intervention in the 25 marker :frown:
Reply 68
Original post by KAKAKA17
So which context did you guys pick and what did you write for the essay question(really want know about those that picked context 1!)? If you picked context 1, what did you write for the essay question?

I'm now starting to kinda worry seeing as I didn't talk about any specific type of gov't intervention in the 25 marker :frown:


could've talked about bufferstock, minimum price and subsidies to encourage production :frown: I just zoned out in the exam :frown: Let's hope for the best in unit 2
For context 1 did you have to evaluate the different types of government intervention?

Para 1 i did a PPF of foodstuffs and biofuel and spoke about the opportunity cost and the government had to intervene
Para 2 I said about the quote on the profit could eradicate poverty, (the price mechanism)
Para 3 I said the price mechanism had broken down so they had to intervene
Conclusion I said about keynesians and free market economists and then the government could fail due to regulatory capture

Thoughts?
Original post by KAKAKA17
So which context did you guys pick and what did you write for the essay question(really want know about those that picked context 1!)? If you picked context 1, what did you write for the essay question?

I'm now starting to kinda worry seeing as I didn't talk about any specific type of gov't intervention in the 25 marker :frown:

Intro: defined government intervention and market failure. I said how there is a case for government intervention as the high prices could be a source of market failure or something.
Then first paragraph i said something like extract B says that production of biofuels is causing poverty due to high prices of agricultural products. This could suggest that there is market failure as the biofuel producers don't take account of the negative externality of poverty and it's received outside the market with the people who suffer from it not being able to charge for the costs imposed on them through the market. This suggests market failure. Then drew a diagram with MSC greater than MPC and said how by this line of argument overproduction of biofuel occurs and this creates a deadweight loss of social welfare to society providing an argument for intervention.
Next paragraph said how government shouldn't necessarily intervene as extract says they have previously intervened through subsidy and been criticised for this. This suggests that when they do intervene they don't intervene in the best way, possibly due to imperfect information. The subsidy would make the situation worse as the biofuel producers have more money due to the subsidy encouraging greater production meaning they demand more wheat for biofuel so subsidy would make the situation worse meaning a net loss of economic welfare and government failure as a result. Said that this provides a good argument against government intervention to keep in line with the question.
Next paragraph i said perhaps there is no need for government intervention as high prices could just represent efficient functioning of rationing function, suggesting market is working fine allocating resources through price mechanism. Then conclusion weighed it all up, said argument for argument against bla bla and then said possibly government could tax biofuel producers to internalise the externality correcting the market failure. As you can see that's the only reference to specific policy I made right at the end and the answer was quite solid overall so no need to worry about not including specific policies
Original post by FlowC
could've talked about bufferstock, minimum price and subsidies to encourage production :frown: I just zoned out in the exam :frown: Let's hope for the best in unit 2


Well yes you could have talked about such schemes, but you would likely have been wasting your time by doing so. The question was if I remember "for" and "against" government intevention. If you wrote an essay about specific government policies then you would not have answered the question!

This is essentially what I did:

- Biofuels " as a merit good " with evidence from extract (i,e. the bit about Brazilian farmers)
- government failure, as being a merit good attempts to intervene would lead to a less efficient allocation of resources e.t.c.

- Biofuels " as a demerit good " with evidence from extract (i.e. Oxfam's opinions on the matter)
- market failure, necessary for government intevention to correct failure e.t.c.

And various evaluation points about opportunity cost (e.g. food vs fuel) scattered around the place.
Reply 72
Original post by HenryHein
Well yes you could have talked about such schemes, but you would likely have been wasting your time by doing so. The question was if I remember "for" and "against" government intevention. If you wrote an essay about specific government policies then you would not have answered the question!

This is essentially what I did:

- Biofuels " as a merit good " with evidence from extract (i,e. the bit about Brazilian farmers)
- government failure, as being a merit good attempts to intervene would lead to a less efficient allocation of resources e.t.c.

- Biofuels " as a demerit good " with evidence from extract (i.e. Oxfam's opinions on the matter)
- market failure, necessary for government intevention to correct failure e.t.c.

And various evaluation points about opportunity cost (e.g. food vs fuel) scattered around the place.


Thank you, the anxiety and stress caught up with me and so just hoping to get back in unit 2 exam... going to study hard and not stress :smile:
Original post by Student20
Yeah, kind of messed up here. Went with Context 2, think I did alright on the multiple choice, I reckon about 19/25, for private goods I missed out the fact they had property rights, but basically mentioned they were supplied under the market mechanism and explained that they had rivalry and excludability, don't know how many out of /5 that will get.


Question 2 compared all 3, giving all 3s highest point then all 3s lowest point.


Question 3 defined supply/demand talked about an inward shift in supply as well as briefly mentioning an inward shift of demand, kind of somehow managed to screw the graph up to some extent though (don't know how).


Question 4 - this was where I really messed up without properly completing a graph due to shortage of time. Managed to talk about the newspapers / internets news being a merit good. Spoke about how subsidies would increase supply, would increase the consumption of newspapers thus moving it to a more socially optimal level.

Then added that this was an expensive form of intervention. Also only briefly mentioned that the supplier might not pass on the subsidy, meaning consumption would not increase, producer surplus would be greater than consumer surplus.

Lastly pointed out that most news is accessed from the TV anyway (in the case of the US) according to Extract A. So the effect of a subsidy may not actually make much difference towards how much people educate themselves upon news.

Then had to do a really short conclusion basically saying I think there shouldn't be a subsidy as its expensive and most people already get their news from the TV (according to Extract A)

So yeah my question 4 was pretty poor with a missing graph, if I could get just over 10 like 12 or so on it I'd be happy as my last few paragraphs were very short.


Are you me? Seriously that's basically how I answered everything, did you also point out the fact that the first extract was from the US but that it would still be relevant in the UK market? Had a feeling they were trying to catch people out with that one.
Original post by arsenalfc97
the mobile phones question last year was similar. The one which said "evaluate the case for and against government intervention in the way mobile phones are manufactured and used". You could get 25 just arguing the for and against without mentioning policies. In fact, if you forgot the for and against and only included policies then you got capped at 16. There is no cap for just the for and against though as that is the essence of the question


Lol...? To get 25, you,need best evaluation, best,analysis and best Application whereby you need to state the intervention methods - analyse them, then obv say For & Against... Thats why its called a question whereby you are suppose to answer it... Dont you think otherwise people would be gettin 25 all the time? We looked ay examplar scripts in,school and top essays only got 22 & 23 so gettin 25 is kinda rare.
Original post by SachinNeedsHelp
Lol...? To get 25, you,need best evaluation, best,analysis and best Application whereby you need to state the intervention methods - analyse them, then obv say For & Against... Thats why its called a question whereby you are suppose to answer it... Dont you think otherwise people would be gettin 25 all the time? We looked ay examplar scripts in,school and top essays only got 22 & 23 so gettin 25 is kinda rare.

maybe not 25 but to get level 5 didn't need to talk about specific policies. The question is not to 'evaluate different policies' the question is 'evaluate for and against government intervention'. These are the 2 different types of question and many get caught out by taking a policies approach.
Original post by arsenalfc97
maybe not 25 but to get level 5 didn't need to talk about specific policies. The question is not to 'evaluate different policies' the question is 'evaluate for and against government intervention'. These are the 2 different types of question and many get caught out by taking a policies approach.



I know that pretty much all 25markers may require some analysis of gov't intervention methods however I'm sure that you could easily get a high level 4/ low level 5 in this question without explicitly stating specific intervention methods. Analysing different methods will obviously support whatever claim you make, but ultimately you should end up answering whether they should or shouldn't intervene. Examiners are obviously aware that different people interpret the question differently and seeing as they don't have tunnel vision, I'm sure they wont condemn the fact that specific methods weren't stated and it won't severely affect our answers as long as we included economic knowledge and understanding of gov't/market failure and intervention.

So to whoever may not have specifically stated intervention methods (including me) we should be fine! It seems that we just took different approaches to reach the end answer.
(edited 9 years ago)
I talked about legislation forcing farmers to sell to food industry and not the biofuel industry, evaluated it. Talked about minimum prices off the back of this and evaluated it. Talked about a subsidy on crude oil to make biofuel less attractive and therefore more wheat to food industry. Talked very briefly about buffer stocks and how they may decrease food prices and reduce poverty. Talked more about poverty than famine, although i didn't mention famine initially, I mentioned how intervention would create a better supply of food ect. Analysed market failures and government failures, concluded that government should intervene due to poverty and it would be best through legislation.

I essentially analysed for and against, talked about how governments would do this and evaluated it. The only tenuous point I made was buffer stocks but that was brief. Strong conclusion.. possibly.

Last years for and against said on the mark scheme...

- Answers discussing only policies cannot rise above 16 marks
- Answers discussing only phone manufacture or phone use cannot rise above 21 marks
- analysing how governments may attempt to influence how mobile phones are manufactured and used
- contrasting the advantages and disadvantages of government action and leaving things to the free market
- evaluating market failure and government failure considerations overall evaluation of the cases for versus the cases against, both for manufacture and use.

I REALLY hope I get more than 16 marks, have been getting band 5 answers all year with a few full markers.
I think I achieved this: 24 + 5 + 8 + 12 + 16 = 65/75 HAVING been capped at 16 for the 25 marker
This is roughly 93 UMS
Original post by arsenalfc97
maybe not 25 but to get level 5 didn't need to talk about specific policies. The question is not to 'evaluate different policies' the question is 'evaluate for and against government intervention'. These are the 2 different types of question and many get caught out by taking a policies approach.

Ik lol I,evaluated policies for intervention and also stated reasons against intervention. I just think that giving policys to back up reasons for intervention helps and shows the examiner You know your stuff and they can,credit analysis marks. Im one.or those lucky people that read and understood the question and didnt fall for the trap! phew
Original post by Jojoestar
Are you me? Seriously that's basically how I answered everything, did you also point out the fact that the first extract was from the US but that it would still be relevant in the UK market? Had a feeling they were trying to catch people out with that one.


Yeah pretty much entirely what I said, but my question 4 was hurried as hell so my paragraphs were really short. Hopefully Unit 2 goes better but I doubt it. My lesson from that exam is to write as much as you can, as fast as you can.

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