OCR F581 Markets in Action - 11 May 2015

Tradeable pollution permits essay.docx13.6KB

Anyone care to mark my tradeable pollution permits essay. Haven't attached the diagrams but it should make sense. Thanks :smile:

Reply 767

AssassinXJ

1

Anyone have a good answer for the 18 marker from May 2010 (reducing indirect tax on petrol/diesel in the UK)

Thanks!!

Reply 768

Original post by Super199

Anyone care to mark my tradeable pollution permits essay. Haven't attached the diagrams but it should make sense. Thanks :smile:

Your definitions (Level 1) are reasonable except market failure, it is to do with allocative efficiency not being present rather than economic efficiency. Level 2 could do with greater depth but that might be because I can't actually see the diagrams. Level 3 needs more explanation and try to attach diagrams to the points made in Level 3. Level 4 and conclusion are good as well.

I'd probably give it 15/16

Reply 769

Need help with the June 2014 F581 question.

"Comment on the extent to which the Chinese government should aim to reduce the negative externalities of pollution"

How do you get the comment marks.

The first 3 marks I would say. A negative externality is where the social costs of an action exceed the private costs. This means there is overproduction and overconsumption. As a result we get market failure as economic efficiency is not achieved since we are not at the socially optimum level.

Reply 770

Original post by jamesnicholson9

Your definitions (Level 1) are reasonable except market failure, it is to do with allocative efficiency not being present rather than economic efficiency. Level 2 could do with greater depth but that might be because I can't actually see the diagrams. Level 3 needs more explanation and try to attach diagrams to the points made in Level 3. Level 4 and conclusion are good as well.

I'd probably give it 15/16

How do you get L2 marks?

Reply 771

Original post by Super199

Need help with the June 2014 F581 question.

"Comment on the extent to which the Chinese government should aim to reduce the negative externalities of pollution"

How do you get the comment marks.

The first 3 marks I would say. A negative externality is where the social costs of an action exceed the private costs. This means there is overproduction and overconsumption. As a result we get market failure as economic efficiency is not achieved since we are not at the socially optimum level.

Write about how it will be difficult for the government to attach a monetary value to the negative externalities and therefore apply a policy which will work as it is likely that it may lead to government failure from overmeasuring or undermeasuring the NEs

Reply 772

Original post by Super199

How do you get L2 marks?

It's all about application really, one easy way of getting application is on your diagrams, rather than just labelling P and Q on the axes, label them with "P of the good/service in question" and "Q of good/service in question". However, they don't always give you a context. In which case, try to think of something relevant as an example and briefly write about it.

Reply 773

Original post by jamesnicholson9

Write about how it will be difficult for the government to attach a monetary value to the negative externalities and therefore apply a policy which will work as it is likely that it may lead to government failure from overmeasuring or undermeasuring the NEs

Care to write me the further 3 marks. Like I am not too sure. I would just say there is an opportunity cost and government intervening could lead to further government failure. Whether it will reduce negative externality or cause more benefit.

Reply 774