**********OFFICIAL OCR ECONOMICS F582 21st MAY 2014 THREAD************

Hey guys, I'm a bit confused with the mark scheme for the 18 marker, and would really appreciate it if anyone could clarify for me please.

I understand in order to get full 18 markers you need to:
L1- define/introduction
L2- application and knowledge
L3-analysis/graph
L4- Evaluate/ judgement

but isn't level 2 and 3 the same? because cant you do the application through your graph?

L2 is yr ability to apply the knowledge to the case study (application)


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Hey guys, I need someone's help please?

for the question explain two other causes of an increase in consumer expenditure (6)

how can I get full 6 marks, as each point is worth 3.

1. High consumer confidence
if consumer confidence is high, they will be encouraged to spend more, therefore save less.

2.fall in interest rates
if there is a fall in interest rates, this will reduce the cost of borrowing and increase spending as the opportunity cost to borrow is less.

Do we need to know about Austerity ??

After your point 1 i would end it with 'resulting in them having a higher average propensity to consume.'

i would also add after your second point that 'if interest rates were to fall, and people left their savings in bank accounts, then they would see a fall in the value of their savings due to inflation, and therefore this may encourage them to take out their savings and spend it somewhere which would bring in a higher income.'

sounds blatantly obvious but what's better, a strong currency or a weak currency? and why?

Hi, a weak currency would benefit an economy more, as our goods will be cheaper to foreigners and more price competitive thus X (exports) increase, simultaneously a weak exchange rate means our currency can buy less, so M (imports) reduce. So X > M, results in a trade surplus in net exports which is a component of aggregate demand, shifting it to the right, consequently economic growth occurs, I hope that helps Good way to remember it is:

SPICED:

S = Strong
P = Pound
I = Imports
C = Cheaper
E = Exports
D = Dearer (expensive)

Hi, a weak currency would benefit an economy more, as our goods will be cheaper to foreigners and more price competitive thus X (exports) increase, simultaneously a weak exchange rate means our currency can buy less, so M (imports) reduce. So X > M, results in a trade surplus in net exports which is a component of aggregate demand, shifting it to the right, consequently economic growth occurs, I hope that helps Good way to remember it is:

SPICED:

S = Strong
P = Pound
I = Imports
C = Cheaper
E = Exports
D = Dearer (expensive)

Brilliant, that helped so much. I'm guessing you watch EconPlusDal too? Great Videos, was just stuck on this one concept. Thanks!

sounds blatantly obvious but what's better, a strong currency or a weak currency? and why?

Is it me, or is this examination more open, I mean for the 18 marker, as long as you understand all the concepts of the policies, governments objectives and AD and AS the essay is a breeze, you could link virtually most things with each other! Also unlike F581, the mark schemes are more lenient, there are so many points to get on some questions, it's just the ODD one or two questions, but hopefully this exam won't have any

I know exactly what you mean, after going over all the past papers and mark schemes I think I'm just going to try and write as many points as possible for questions, especially since I always have loads of time left, that way hopefully on the 6 markers I can be assured of maxing out the marks