AQA Economics AS May 2015

Guys what do you think will come up, also whats your structure for 25 markers. Here's mine:

- Intro- 2 definitions and explanation of context
- Pt1 - elaborate and evaluate
- Pt2 - same
- Pt3 (optional) - same
- Main evaluation - alternatives, wider context etc.
- Conclusion .

Good luck :smile:

This year i think buffer stocks may come up and something to do with externalities.

Reply 141

Exceptional

21

Original post by Schmitzel

So long as I get my merit/demerit/positive/negative externality question.

As long as it's about government intervention then you can talk about it and they always come up, so should be fine!

Reply 142

Krollo

OP

17

My structure:
Intro - definitions, setting out main points
Diagrams (referred to in text)
4/5 paragraphs, each of form: statement, back up with data, analyse, evaluate
Conclusion

Posted from TSR Mobile

Reply 143

Exceptional

21

The best structure (for a policy question) is this:

Definitions, and then explaining that there's a negative/positive extern. Draw the relevant market failure diagram and say that two possible policies could correct it.

Analysis 1: a nice paragraph explaining the first policy. Then draw/explain the diagram.

Evaluation 1: evaluate the policy.

Repeat these two things for the second policy.

Conclusion: reach a judgement and throw in a third policy that might be better than the two you've talked about briefly (but not too necessary). Throw in some "in the long-runs", "it depends ons" and "howevers".

35 mins would enable you to do this but 30 should be alright.

Reply 144

ozzie2

12

My structure Be:

Introduction - some definitions, market failure of the specific case study and use figures from Extract A if applicable.

Paragraphs:
State an issue possibly given by the extract.
Quote extract
Explain effect on whatever question is and analyse it
Diagram if relevant
Evaluate briefly

Then I end with conclusion and answer the question given :smile:

Reply 145

ozzie2

12

Original post by BBeyond

http://gyazo.com/822d3d16cae2fe5910cce74059a8ca5d

can someone explain that please

Pretty sure the answer is D right? What I thought is that they both have different values for each index number. So for in Firm X 1 index may be 10 productivity, but in firm Y it may be 15 productivity as index numbers may be different for each. Therefore you don't know the actual value of their productivity, by process of elimination ABC are wrong. And if you work out the percentage change for each Firm, X is higher at a -46% compared to Firm Y at -33%. Therefore you can conclude that it fell at a faster rate in firm X.

Reply 146

PAPADAPADOPOLOUS

2

Say you've got plastic bags from a supermarket which are free, and then the government imposes a tax on these plastic bags which causes the price of the bags to rise, lets say 5p per bag.

How do you explain why this tax causes a shift to the left of the supply curve?

I realise that consumption of plastic bags will fall, and it will incentive individuals to reuse their plastic bags, but this explaining the demand side effects.

How do you explain the supply side effects?

I think the answer may be something like this, 'a tax will increase costs of production, will which then shift the supply curve to the left, feed through to higher prices assuming the PeD does not = infinity'.

Which one do you say? Im not so sure a tax on plastic bags will increase costs of production, but i thought it was just a tax that affected the price not costs? So what do you say? Why does supply shift to the left following the imposition of an indrect tax on plastic bags?

Reply 147

BBeyond

15

Original post by ozzie2

Pretty sure the answer is D right? What I thought is that they both have different values for each index number. So for in Firm X 1 index may be 10 productivity, but in firm Y it may be 15 productivity as index numbers may be different for each. Therefore you don't know the actual value of their productivity, by process of elimination ABC are wrong. And if you work out the percentage change for each Firm, X is higher at a -46% compared to Firm Y at -33%. Therefore you can conclude that it fell at a faster rate in firm X.

yeah that makes sense cheers

my layout:

intro: definition or 2, explain market failure + do diagram and explain my approach to the question possibly trying to quote something from an extract
p1/2/3 possibly 4: quote extract analyse policy, diagram if possible, evaluate
conclusion: usually summarise argument then state it depends on...

Reply 148

NR19985

4

My biggest gripe is that I never know if I'm evaluating, what even is evaluating? :'(

Reply 149

deji_ta

10

Original post by BBeyond

Wait isn't the answer B?

An increase in sales signifies there is an increase in demand, leading to a rightward shift in demand. Note: The question specifically says an increase in sales not an increase in supply. It is quite a tricky question.

Reply 150

BBeyond

15

Original post by deji_ta

An increase in sales signifies there is an increase in demand, leading to a rightward shift in demand. Note: The question specifically says an increase in sales not an increase in supply. It is quite a tricky question.

Well according to the official AQA markscheme the answer is B lol

Reply 151

SamCricket1

What could be the 5 and 12 markers be on this year in Econ 1?

Reply 152

Exceptional

21

Original post by BBeyond

Wait isn't the answer B?

Yes the answer is B.

Reply 153

PAPADAPADOPOLOUS

2

QUESTION MULTIPLE CHOICE
Which one of the following is associated with a missing market?

A : A monopoly restricting output
B : The production of a negative externality
C : A firm deciding to produce a private good
D : A government subsidising agricultural production

What's the answer, and why?

Reply 154

AFRO_JOSH

Guys, what are your guesses for the topic of the contexts? Inequality and Housing were two things people were talking about around the time they wrote the papers, thats my guess.

Reply 155

AFRO_JOSH

Original post by PAPADAPADOPOLOUS

QUESTION MULTIPLE CHOICE
Which one of the following is associated with a missing market?

A : A monopoly restricting output
B : The production of a negative externality
C : A firm deciding to produce a private good
D : A government subsidising agricultural production

What's the answer, and why?

I would say B, because a missing market is a situation where competitive markets allows the exchange of a commodity that have negative externalities.

(edited 8 years ago)

Reply 156

PPF

19

Original post by nitin985

My biggest gripe is that I never know if I'm evaluating, what even is evaluating? :'(

Start with an introduction - briefly outlining the motivation, definitions, significance, perhaps recent or historical events that relate to the question. Move on to the main body of your essay using the conventional theory you have learned so, a very simple example, the question asks you about the effect of expansionary monetary and fiscal policies, so basically show the effects using a graphical or algebraic analysis, thereafter you need to critique what you have just wrote. So, for example suppose you said that cutting interest rates would stimulate aggregate demand, and that increasing government spending would also stimulate demand, you need to now question the viability of these claims. Here is a brief list of possible evaluations:

Monetary Policy

Time Lags
Rules VS Discretion
Lucas Critique
Zero-Lower Bound
Rational Expectations
The Importance of Communication
New dimensions post-crisis i.e. QE, Macroprudential etc
Endogenous money supply - reserve-requirements have little effect
Monetary policy is ineffective under a fixed exchange rate regime (Trillema)(Sterilization)
Money neutrality in the long-run

Fiscal Policy

Ricardian Equivalence
Rational Expectations
Slopes of supply and demand
Shadow market - higher taxes (may) result in evasion/avoidance
Politically difficult
Flexible exchange rates make it less effective
Effect depends on the nature or magnitude of private debt in the economy
Laffer Curve
Debt overhang? Austerity exacerbates the problem?

Hope this helps. Good Luck.

Reply 157

PAPADAPADOPOLOUS

2

Original post by AFRO_JOSH

I would say B, because a missing market is a situation where competitive markets allowing the exchange of a commodity that have negative externalities.

I thought a missing market, was one which was not provided at all. For that reason i thought it couldnt be B due to the fact the market still provides the good, but overprovides.

Intitially i picked D because if a government didnt subsidise then the agricultural farmers may not make income, go bump, and then no longer supply to the market, hence 'missing market'.

Reply 158

badlychosenone

2

Original post by PPF

Start with an introduction - briefly outlining the motivation, definitions, significance, perhaps recent or historical events that relate to the question. Move on to the main body of your essay using the conventional theory you have learned so, a very simple example, the question asks you about the effect of expansionary monetary and fiscal policies, so basically show the effects using a graphical or algebraic analysis, thereafter you need to critique what you have just wrote. So, for example suppose you said that cutting interest rates would stimulate aggregate demand, and that increasing government spending would also stimulate demand, you need to now question the viability of these claims. Here is a brief list of possible evaluations:

Monetary Policy

Time Lags
Rules VS Discretion
Lucas Critique
Zero-Lower Bound
Rational Expectations
The Importance of Communication
New dimensions post-crisis i.e. QE, Macroprudential etc
Endogenous money supply - reserve-requirements have little effect
Monetary policy is ineffective under a fixed exchange rate regime (Trillema)(Sterilization)
Money neutrality in the long-run

Fiscal Policy

Ricardian Equivalence
Rational Expectations
Slopes of supply and demand
Shadow market - higher taxes (may) result in evasion/avoidance
Politically difficult
Flexible exchange rates make it less effective
Effect depends on the nature or magnitude of private debt in the economy
Laffer Curve
Debt overhang? Austerity exacerbates the problem?

Hope this helps. Good Luck.

lmao this doesn't help AS students smartypants