OCR F581 Markets in Action - 11 May 2015

Original post by Hammy_23

How many marks would u give the essay 11-12?

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I imagine the other individual on here who is an examiner would have a better idea but I think I would give it about 10 because of the mistake on the graph with quantity demanded and not mentioning where exactly supply shifted from and to. My main advice is just to be specific and be careful of little mistakes because they could cost you marks even though it is clear you probably know better.

Reply 344

QUICK QUESTION. For an 18marker based on regulation(or any other market failure). If the regulation affect both supply and demand. Do we have to draw both supply and demand shifts on INDIVIDUAL DIAGRAMS, and explained individually or show the shift of suuply and demand of the affect on regulation on ONE GRAPH? Please help im a bit confused..
Thanks for your help!

Reply 345

Original post by Yousf

QUICK QUESTION. For an 18marker based on regulation(or any other market failure). If the regulation affect both supply and demand. Do we have to draw both supply and demand shifts on INDIVIDUAL DIAGRAMS, and explained individually or show the shift of suuply and demand of the affect on regulation on ONE GRAPH? Please help im a bit confused..
Thanks for your help!

One diagram, explained together.

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Reply 346

Original post by *Stefan*

One diagram, explained together.

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Would i be pinalised for doing the effect on two seperate diagrams?

Reply 347

Original post by Yousf

Would i be pinalised for doing the effect on two seperate diagrams?

Yes. It's wrong because the equilibrium points would be different in each diagram.

For example, if you shift supply in one and leave demand static, the new equilibrium would essentially be different from the other diagram, where demand will shift but supply will remain static.

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Reply 348

Original post by *Stefan*

Yes. It's wrong because the equilibrium points would be different in each diagram.

For example, if you shift supply in one and leave demand static, the new equilibrium would essentially be different from the other diagram, where demand will shift but supply will remain static.

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Oh ok, thanks again.

By the way i did a past paper for May 2011 and have a few questions.

For Q1a. Can i say, to 'grow the pu'er' for stating Land as one of the factors of production.
For Q2. Could i label the axes the opposite to what was on the markscheme, eg pu'er tea on x axis and staple foods on y axis?
For Q6b, i don't understand how reduce chloestrol was wrong when i said it was one of the positive externalities arising?

I would really appreciate it, if you could go through and check what i written is suitable. Thanks!

Past paper:
http://www.ocr.org.uk/Images/58665-question-paper-unit-f581-markets-in-action.pdf

Markscheme:
http://www.ocr.org.uk/Images/65746-mark-scheme-unit-f581-markets-in-action-june.pdf

Reply 349

Gladiatorsword

Original post by Yousf

Oh ok, thanks again.

By the way i did a past paper for May 2011 and have a few questions.

For Q1a. Can i say, to 'grow the pu'er' for stating Land as one of the factors of production.
For Q2. Could i label the axes the opposite to what was on the markscheme, eg pu'er tea on x axis and staple foods on y axis?
For Q6b, i don't understand how reduce chloestrol was wrong when i said it was one of the positive externalities arising?

I would really appreciate it, if you could go through and check what i written is suitable. Thanks!

Past paper:
http://www.ocr.org.uk/Images/58665-question-paper-unit-f581-markets-in-action.pdf

Markscheme:
http://www.ocr.org.uk/Images/65746-mark-scheme-unit-f581-markets-in-action-june.pdf

1A- you would saY "Land - the land upon which the tea is grown such as a farm

2) yes you can swap the axis names around as long as you illustrate the same thing

3) positive externality is a benefit for a THIRD PARTY- reducing cholestrol is a private benefit so you would have to say how this BENEFITS A THIRD PARTY so -" lower cholestrol results in a decrease in the number of people with cholsestrol-related dieseases - benefits healthcare service due to lower costs

Reply 350

Original post by Yousf

Oh ok, thanks again.

By the way i did a past paper for May 2011 and have a few questions.

For Q1a. Can i say, to 'grow the pu'er' for stating Land as one of the factors of production.
For Q2. Could i label the axes the opposite to what was on the markscheme, eg pu'er tea on x axis and staple foods on y axis?
For Q6b, i don't understand how reduce chloestrol was wrong when i said it was one of the positive externalities arising?

I would really appreciate it, if you could go through and check what i written is suitable. Thanks!

Past paper:
http://www.ocr.org.uk/Images/58665-question-paper-unit-f581-markets-in-action.pdf

Markscheme:
http://www.ocr.org.uk/Images/65746-mark-scheme-unit-f581-markets-in-action-june.pdf

Q1a - "to grow the pu'er" is too simple and broad an answer in my opinion. It should make specific mention to something, like the plants themselves or the farm (like the mark scheme says).

Q2 - Yes, you can label the axes whichever way you like, so long as the correct products are shown.

Q6B - The problem in saying "reduces cholesterol" is that this is a private benefit, as explained in the mark scheme. This means that it affects one person only, whose consumption of pu'er may be irrelevant to the fact that more of it is produced.

In order to assess the positive externality, it would be MPB (the private benefit) + the value of the externality = MSB (which is the external benefit). With your answer, you don't add the value of the externality at all.

Your answer would have been more complete if it had been; increasing consumption of pu'er (collectively, not just by one person) would reduce cholesterol levels and lead to a reduction in the costs of healthcare for the NHS.

A useful thing to remember here is that, when assessing a positive externality, you should remember that it affects people collectively -ie the inoculation of a child helps prevent further spread of a virus to other people = this is the positive externality. The fact that it protects the child as well is a private benefit.

(edited 8 years ago)

Reply 351

Original post by *Stefan*

Q1a - "to grow the pu'er" is too simple and broad an answer in my opinion. It should make specific mention to something, like the plants themselves or the farm (like the mark scheme says).

Q2 - Yes, you can label the axes whichever way you like, so long as the correct products are shown.

Q6B - The problem in saying "reduces cholesterol" is that this is a private benefit, as explained in the mark scheme. This means that it affects one person only, whose consumption of pu'er may be irrelevant to the fact that more of it is produced.

In order to assess the positive externality, it would be MPB (the private benefit) + the value of the externality = MSB (which is the external benefit). With your answer, you don't add the value of the externality at all.

Your answer would have been more complete if it had been; increasing consumption of pu'er (collectively, not just by one person) would reduce cholesterol levels and lead to a reduction in the costs of healthcare for the NHS.

A useful thing to remember here is that, when assessing a positive externality, you should remember that it affects people collectively -ie the inoculation of a child helps prevent further spread of a virus to other people = this is the positive externality. The fact that it protects the child as well is a private benefit.

Thanks!

Reply 352

Original post by Gladiatorsword

1A- you would saY "Land - the land upon which the tea is grown such as a farm

2) yes you can swap the axis names around as long as you illustrate the same thing

3) positive externality is a benefit for a THIRD PARTY- reducing cholestrol is a private benefit so you would have to say how this BENEFITS A THIRD PARTY so -" lower cholestrol results in a decrease in the number of people with cholsestrol-related dieseases - benefits healthcare service due to lower costs

Thanks!

Reply 353

justfly

2

Can someone help me with XED? Like explain it in more detail please? My teacher said there's a high chance of it coming up this year

Reply 354

Hammy_23

3

Definitely a big chance it will come up

Reply 355

newmss

1

Any Essay predictions?

Reply 356

OrionMusicNet

Original post by newmss

Any Essay predictions?

My only guess would be restrictions on free trade and their effect on the economy or something, there has been nothing on protectionism over like all the past papers and the syllabus is changing this year so if there was a time it would be now but that is just speculation of course and it could really be on anything.

(edited 8 years ago)

Reply 357

OrionMusicNet

Original post by justfly

Can someone help me with XED? Like explain it in more detail please? My teacher said there's a high chance of it coming up this year

I have a section dedicated to it in my unit 1 notes:
http://www.mediafire.com/view/4ait8abiwje9964/Economics_AS_Level_Notes.docx
Here are my unit 2 notes as well if that helps for your unit 2 revision:
http://www.mediafire.com/view/1blv5abv36a56zf/Economics_AS_Level_Notes_Macroeconomics_(Finished).docx

Reply 358

newmss

1

Original post by OrionMusicNet

My only guess would be restrictions on free trade and their affect on the economy or something, there has been nothing on protectionism over like all the past papers and the syllabus is changing this year so if there was a time it would be now but that is just speculation of course and it could really be on anything.

Yeah I agree it could be anything, and Free trade is a strong contender. I guess it's best to prepare for all eventualities they can throw at you, it is 30% of your marks after all!

Reply 359