OCR F581 Markets in Action - 11 May 2015

it would be pretty hard since it is not part of the syllabus :smile:

Hey keynes any advice on how you would go about achieving up to L3 on tradable permits? I feel like I can do L4 much easier but struggle to achieve up to L3.

Reply 881

Makashima

OP

16

Original post by justfly

Hey I can't edit it, are you sure its open to the public and editable for everyone else?

still cant edit=

https://docs.google.com/document/d/1f43oc8kXyjDsdF5qK2z5NZ7q6KGpIbV3M-Rrt4wpjS8/edit?usp=sharing

i changed it :s-smilie:

Reply 882

anndz3007

2

Original post by Super199

That's sort of the analysis part. You get some marks for saying it is an estimate and that... I am not full sure on what those are

inaccurate/unreliable data
and based on the case study, you can say i'm surprise because i would expect the 2 products to be more elastic/inelastic (for example there was a paper about therapeutic and traditional gum, the XED is inelastic, you say you are surprised because you expect them to be elastic since they are both chewing gum)

Reply 883

keynes24

10

Original post by justfly

Hey keynes any advice on how you would go about achieving up to L3 on tradable permits? I feel like I can do L4 much easier but struggle to achieve up to L3.

it has been explained before a few pages bacl

Reply 884

Pato1

13

Original post by keynes24

it would be pretty hard since it is not part of the syllabus :smile:

It came up as an essay in 2011 I think

Reply 885

Slenderman

2

Original post by Slenderman

Can someone help with the following questions, they're based of past papers. From 2009-2010.

5. Explain why the price of petrol and diesel may not reflect the true costs of their use.

5. (b) Explain why negative externalities arising from an increase in air transport are an example of market failure.

5. Comment on why there is likely to be information failure amongst consumers of processed red meat products.

As you can see I am not a fan of these questions, i find the them harder than the 18 marker lol.

Anyways can someone help me, thanks.

^^^^^^^

Reply 886

Slenderman

2

Original post by Pato1

It came up as an essay in 2011 I think

Jan 10

Reply 887

keynes24

10

Original post by Pato1

It came up as an essay in 2011 I think

privatisation? never

Reply 888

Makashima

OP

16

Dang, a lot of people editing the docs...Wow that is productively efficient :wink:

Anyway thanks :smile:

SHouldve done it earlier lol

Reply 889

keynes24

10

Original post by Pato1

It came up as an essay in 2011 I think

Discuss whether health care in the UK should be provided by the government or the private sector.
That was different from privatisation. Reasons why the government should intervene (merit goods, imperfect information, income inequality) Reasons why the government shouldn't intervene (government failure, free market may be more efficiency...)

..

I have a question. Why does the quantity traded only increase by a little bit after a subsidy, causing an increase in supply, on a merit good with inelastic PED. Surely if the good is addictive, has a lot of brand loyalty, is only a small proportion of people's income etc then the quantity traded would increase a lot after a subsidy on an inelastic merit good???? Sorry perhaps my question is not clear...

Reply 892

anorris13

2

Anyone have a concise model for how to answer the "comment on these elasticity estimated for businesses" questions?

Reply 893

Pato1

13

Elasticity Question

It is only an estimate, so may not be accurate and can’t be relied on for future decisions.
Depends upon other factors changing.
Depends upon the time period, e.g. PES more elastic in the long run.

Reply 894

Super199

20

Original post by keynes24

Discuss whether health care in the UK should be provided by the government or the private sector.
That was different from privatisation. Reasons why the government should intervene (merit goods, imperfect information, income inequality) Reasons why the government shouldn't intervene (government failure, free market may be more efficiency...)

Just wondering with a tradeable pollution diagram does the supply curve shift to the left or not?

Reply 895

hyjacked

9

Original post by BigFreakyGinger

I have a question. Why does the quantity traded only increase by a little bit after a subsidy, causing an increase in supply, on a merit good with inelastic PED. Surely if the good is addictive, has a lot of brand loyalty, is only a small proportion of people's income etc then the quantity traded would increase a lot after a subsidy on an inelastic merit good???? Sorry perhaps my question is not clear...

I think it is because if it is addictive and a small % of income then the price doesn't really come into the equation when people buy it. So they already but the amount that they would ever want.

Reply 896

luk3miller

2

Sorry if it's been posted before, but does anybody have a link to the F581 January 2014 question paper?

Reply 897

BigFreakyGinger

2

Original post by anorris13

Anyone have a concise model for how to answer the "comment on these elasticity estimated for businesses" questions?

PED comments:
-Calculate (Inelastic/elastic)
-Refer to business significance (INelastic ped you INcrease price to INcrease revenue)
However, evaluate the values: (OREOS)
Outdated?
Reliability?
Estimates?
Other factors? (e.g data may have been collected during a recession= lower incomes= larger proportion of income)
Suspected? (i.e a positive PED value would be unsuspected as the demand curve always has a negative gradient)