OCR F581 Markets in Action - 11 May 2015

Original post by higgin97

Nicholson

Hello mate

Reply 1161

_Fergo

19

Original post by JYNE

So if I was to answer a question on it would I draw:

how it works
how the gov may react (supply shifts left)
how firms may react (demand shifts right)??

I'd advise checking pages 71-72 (or so) of the main textbook.

Demand and supply can both shift to the left and right -depending on the circumstances.

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Reply 1162

Rk2k14

17

What diagrams would you draw for Public/Private Sector?

Reply 1163

2014_GCSE

3

Original post by Rk2k14

What diagrams would you draw for Public/Private Sector?

Externalities Diagram i.e. if education was just provided by the private sector, they would ignore the positive externalities as they are focussed on profit and so Education would be under-consumed and under-produced.

Reply 1164

Rk2k14

17

Original post by 2014_GCSE

Externalities Diagram i.e. if education was just provided by the private sector, they would ignore the positive externalities as they are focussed on profit and so Education would be under-consumed and under-produced.

Ahh ok, so shifting D right for +VE and shifting shifting S left for -VE.

Thanks.

Reply 1165

Slenderman

Man can someone help me. I am confident with this exam but I am having anxiety attacks just thinking about it, even now the palms of my hands are getting hot and sweaty. Lol.. no idea what to do. I know that I can get an A and I have the potential and knowledge but damn am I scared.

Reply 1166

c223

If anyone needs any last minute revision notes, private message me your email and I can send mine over. They got me 100% on the mock (though of course you need to be able to apply them) and are compiled from my notes, textbook, revision guide and various online resources.
I can also send my macro notes too if people want them.
Otherwise good luck for tomorrow everyone!

Reply 1167

Becky_boo84

1

Ok so I've just come onto this thread for a look at what people were predicting for the essay and find that people are suggesting it would be a Public vs. Private sector comparison. This has totally thrown me off as for some reason my teacher never ever showed us that essay question from Jan 2010 and we've never gone through the pros and cons of public and private in class. We only ever focussed on market failures being solved by government interventions?!

Could someone be lovely and give me a quick rundown of things that could help me if this really is the topic of the essay tomorrow? I'd be so so grateful as I'm aiming for an A and this would really catch me out :frown:

Reply 1168

Hammy_23

3

Original post by Jeff ?

Don't quote me completely on anything since i am also only a student :smile:

Looking at the essay your L4 was done really well talking about tradable pollution permits as an alternative

However the L3 IN MY OPINION was relatively weak. You mentioned that regulation would limit pollution. This is good however i would only award L3 band 1 for it. From my experience of doing past papers, i think L3 B2 will only be award if you talk about how Regulation WOULD CORRECT market failure. Like a diagram showing how supply would drop and explain that MSB would be equal to MSC in the new equilibrium.

The maximum mark id give for a weak L3 would be 15
Please remember this is only my opinion and our writing style might be completely different :smile:

ohh don't worry not at all i appreciate your input thanks for that :smile:

Reply 1169

justfly

Original post by Slenderman

Man can someone help me. I am confident with this exam but I am having anxiety attacks just thinking about it, even now the palms of my hands are getting hot and sweaty. Lol.. no idea what to do. I know that I can get an A and I have the potential and knowledge but damn am I scared.

calm down bruh you'l smash this exam into a million pieces.

Reply 1170

OrionMusicNet

Original post by Slenderman

Man can someone help me. I am confident with this exam but I am having anxiety attacks just thinking about it, even now the palms of my hands are getting hot and sweaty. Lol.. no idea what to do. I know that I can get an A and I have the potential and knowledge but damn am I scared.

I should be very confident for this exam but am still getting my self worried for no real good reason. I would tell you to relax but that won't do anything so at least for me the way I am thinking about it is that at least tomorrow you can get it done and over with and chances are you will have done better than a lot of other people provided you put the work in :smile:

Reply 1171

OrionMusicNet

Original post by 2014_GCSE

Does this make sense as its own Tradeable Permits evaluation:

If the government sets a supply of too little permits then firms could struggle to meet these boundaries without raising price so high that the firm could potentially go out of business with a lack of demand for their goods set at this high price. This leads to a government failure.

Yep that is completely true and so it would likely lead to unemployment and a loss of tax revenue as well as they will no longer receive tax from those firms that have shut down or the workers who have lost their jobs as they will no longer be receiving any income.

Reply 1172

CamilleClarke

Can demand shift to the right following regulation e.g requiring firms to provide more info about a product that generates positive externalities?

Reply 1173

Original post by *Stefan*

I'd advise checking pages 71-72 (or so) of the main textbook.

Demand and supply can both shift to the left and right -depending on the circumstances.

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Showing the demand shift is not gona solve the market failure regarding tradeable permits? We need to show supply shift right..

Reply 1174

_Fergo

19

Original post by Yousf

Showing the demand shift is not gona solve the market failure regarding tradeable permits? We need to show supply shift right..

The diagram I was referring to is the tradable permits one.

The one you refer to is the market diagram. In this diagram, the supply curve should shift to the LEFT (be careful here). The new equilibrium is the socially optimum level.

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Reply 1175

Tbh, showing a demand shift for Tradeable permits is only gona be used to describe how tradeale permits work, it
is not needed to show this shift, you can just describe it. Draw a inelastic supply curve with a demand curve, and then draw a normal supply and demand diagram showing supply curve shifting. The market failure will revolove around pollution

Reply 1176

Original post by *Stefan*

The diagram I was referring to is the tradable permits one.

The one you refer to is the market diagram. In this diagram, the supply curve should shift to the LEFT (be careful here). The new equilibrium is the socially optimum level.

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Yep

Reply 1177