AQA Economics AS May 2015

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Because it isn't irrelevant. Economics is Economics. The idea was to give you guys some additional points to perhaps surprise the examiners and achieve great results.

Are they more centred towards macro as it is involved with fiscal and monetary policy, or can you use some of the fiscal points if you were talking about say a tax?

Reply 181

PPF

Original post by ozzie2

Are they more centred towards macro as it is involved with fiscal and monetary policy, or can you use some of the fiscal points if you were talking about say a tax?

I'm not sure I understand your question correctly. Tax adjustments are part of Fiscal Policy (Macro).

You might be referring to taxes as in for correcting externalities or something in which case not all of the points mentioned above would apply. You could argue that taxes on pollution for example would have a macroeconomic impact by cutting into corporate profits, and therefore could give them greater incentive to offshore production to other countries. This would have a negative impact on the domestic economy (problems associated with multi-nationals leaving). Hence, although the tax may reduce the rate of pollution, these benefits must be balances against the wider impacts. I stress that these points are all assuming everything else remains constant.

Reply 182

Hamishmagic

Hey everyone, I'm so nervous for tomorrow my multiple choice is so hit and miss, does anyone have any last minute tips??

Reply 183

anonwinner

Original post by PPF

Because it isn't irrelevant. Economics is Economics. The idea was to give you guys some additional points to perhaps surprise the examiners and achieve great results.

It is irrelevant, it's like providing caculus methods to someone about to sit GCSE maths

Reply 184

zennadesigns

If a housing market question does come up - the possible government interventions could be ,
Subsidy to the housing market - reduce costs and therefore welfare increase in the long run
max price on rent - however this creates excess demand which is not productively efficient

or Min price in order to reduce the amount that is demanded ( excess demand ) and therefore leads the economy with excess supply however housing is relatively price inelastic and consumer have a high propensity to consume therefore would take out mortgages in order to buy houses
or we can reduce this excess supply by implementing a buffer stock scheme that buy up the houses....
and now instead of being privately rented properties , its under the governments supervision and control.

general evaluation points is that ...time lag , magnitude

however please bear in mind that in one of the 2004 paper there was a question on for or against housebuilding should be removed . And therefore would be unlikely to ask a question on houses all together . I reckon it will be on something like oil prices of NHS obesity

Reply 185

Wawasan

This is probably a cliche but just be prepared for anything - Geoff Riley says that the best students will be able to respond to any question and its not like the examiners expect prior knowledge of the particular market in question - this is after all AS Economics, not AS Housing Market Studies.

Reply 186

zennadesigns

exactly, lets not second guess but make a educated guess ... on what hasn't come up and what has.

Good luck everyone , keep on doing MC and soon you'll see a trend

Reply 187

Astarrr

which definition do you think is going to come up?

Reply 188

KimberlyKumar

Does anyone know where the mark scheme is for the June 2011 micro paper?? I would greatly appreciate it if someone sent it to me. Thanks!!!!!

Reply 189

penguinpenny

Original post by econam

What diagrams could you draw for intervention regarding externalities. Other than tax and subsidy?

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You can draw the welfare gain or welfare loss triangle I guess

Reply 190

zennadesigns

Original post by penguinpenny

You can draw the welfare gain or welfare loss triangle I guess

you can draw regulation and how its too lax or too tight - neg is marginal private benefits is greater the marginal social benefit- loads of 25 mc come up on this and deffo one will come up tomorrow ( example = which diagram illustrates neg externalities)

if any one needs help in expelling a MC ask me i find it as good revision - if i example i under more lol