OCR F581 Markets in Action - 11 May 2015

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Need some help with a past paper question.
Ocr June 2009. 2a and 2b. I put rate of tax on air travel as one or the demand determinants. Would that be wrong?
For 2b why does supply shift and not demand. Where in the question or how am I supposed to know supply shifts?

Tax is a factor affecting supply not demand. What is the question for 2b?

Reply 241

Super199

Original post by keynes24

Tax is a factor affecting supply not demand. What is the question for 2b?

ah right I get 2a now so it can't be tax because of what you said. For 2b it says " using a demand and supply diagram, explain how the growing number of low cost flights has affected the market for air travel in Europe"

Reply 242

keynes24

It is supply because it means a rise in the number of firms

Reply 243

Super199

Original post by keynes24

It is supply because it means a rise in the number of firms

sorry I don't understand

Reply 244

keynes24

Original post by Super199

sorry I don't understand

More low cost airlines in the market indicates a rise in the number of firms in the industry. Any reference to a rise or fall in the number of firms is a factor affecting supply.

Reply 245

anorris13

What do you think will be the essay this year?

Reply 246

Hammy_23

Likely to be on subsidies

Reply 247

Maleeha121

Not really, could be Tradable permits or regulation.

Reply 248

Makashima

TBH
You cant really predict.

Reply 249

keynes24

Original post by Maleeha121

Not really, could be Tradable permits or regulation.

Or you could learn how to answer any type of government intervention. January 2010 was an unusual question, it could come up again in terms of education. Also reduction in taxes or subsidies and consequences to a market.

Reply 250

Maleeha121

Original post by keynes24

Yes, we need to practice an essay question on each government intervention I.e. Regulation, indirect tax, subsidy, tradable permits and information provision.

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Reply 251

Gladiatorsword

Original post by Maleeha121

Yes, we need to practice an essay question on each government intervention I.e. Regulation, indirect tax, subsidy, tradable permits and information provision.

Posted from TSR Mobile

I wouldn't bank on this, but june 2014 was tax so it's unlikely they'll do tax again. But again, keynes advice is best - do all 18 markers since 2009

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Reply 252

Maleeha121

Original post by Gladiatorsword

I wouldn't bank on this, but june 2014 was tax so it's unlikely they'll do tax again. But again, keynes advice is best - do all 18 markers since 2009

Posted from TSR Mobile

Yeah apart from tax, we need to do the rest.

Reply 253

keynes24

Original post by Maleeha121

Yeah apart from tax, we need to do the rest.

It could be a reduction in taxes on tobacco for instance. Also taxation could come up as a 6 marks question.

Reply 254

Maleeha121

Omg that's what I'm saying. We have to do EVERYTHING but essay question will be anything APART from taxes.

Reply 255

Makashima

Public goods hasnt been on a while, hm :s-smilie:

Reply 256

Super199

Can someone explain information provision and state provision.

Reply 257

nectempus

For the January 2010 18 marker about the health service in the UK being government provided or private sector provided, it says that the private sector would exclude the very poorest, having "wider macro-economic implications on the supply side".

Could anyone enlighten me on what these implications would be please? Thanks

Reply 258

keynes24

Original post by nectempus

I would concentrate on micro issues such as inequality, demerit goods.......
By macro implications on the supply side I assume it refers to the lower availability of health care provision (not universal anymore) and the impact on the LRAS.