UNOFFICIAL MARK SCHEME OCR Economics - Markets In Action 2015

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Hi, for the 18 mark question I did not give any examples. This is level 2 if I misses this will my marks be capped at that level or can i proceed to level 3 and 4 as they were really good. And what else counts as level 2 I had diagrams of subsidies does this count?

So long as you at least used a diagram or at least explained the application of subsidies, there's nothing to worry about.

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Reply 81

Yousf

i think the supply curve shifts to the left for the agricultral product diagram, it did say in the article that less land will be used for agricultral products thus supply shift to the left, result in increase in price and fall in quantity. If you shift the demand curve, even though it raises price levels, it would show an increase in quantity of agricultral products, but this was not the case, it never said there was going to be an increase in demand as well for the products.
Im not sure though..

Reply 82

JacobC1998

Original post by *Stefan*

Still, the fact that such questions have never been asked in a "comment" style made them difficult for many people.

What did you write?

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they were being efficient for producing biofuel but not so for other goods as a result, cant remember all the examples in the case study. The public good one was just define it and explain how the characteristics of it may or may not be applied to those areas

Reply 83

tanahm

Original post by *Stefan*

So long as you at least used a diagram or at least explained the application of subsidies, there's nothing to worry about.

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i explained how a subsidy reduced the cost of production and increased profitability therefore producers were willing to supply more. I then drew a rightwards shift of supply and analysed the effects for example the price and quantity changed.

Reply 84

tanahm

Will merit goods with positive externalities be an example for level 2? I have level 1 3 and 4 but not sure if i have ticked level 2 and if so does my marks get capped?

Reply 85

Economistician

For the question asking how "price could significantly increase", is there any chance a double shift could be awarded marks? I.e. Increase in demand, decrease in supply. Instead of just one shift?

Reply 86

tanahm

Original post by lexy1213

i also didn't use an example... just spoke about positive externalities (defined it) then said supply shifts right as production costs decrease so producer surplus will increase causing a fall in price from p1 to p2, resulting in an increase in consumer surplus leading to an increase in quantity demanded. This, in turn will solve the market failure reduce underconsumption and move the market close to allocative efficiency as consumer welfare increases.

would this be ok...?????

I did the same thing just talked about merit goods and positive externalities in general and not specificity. I also want to know if this is okay.

Reply 87

_Fergo

Original post by tanahm

I did the same thing just talked about merit goods and positive externalities in general and not specificity. I also want to know if this is okay.

Mentioning that subsidies show the true value of the positive externality of a good was sufficient. You still ought to link that to how subsidies reduce market failure.

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Jek

For the 18 mark question, I didn't explain any alternatives as the question asked will subsidies always correct market failure. I don't see how explaining and evaluating an alternate will really answer the question thus I didnt explain any alternatives. All I did was 2 analysis points of why subsidies may correct failure and 2 evaluation points for why it's not with conclusions and diagrams

Reply 90

Hineshtailor

For the 18 mark question, I didn't explain any alternatives to correct market failure as the question asked was will subsidy always correct market failure meaning how would the use of explaining alternatives answer the question?

Thanks for that.

Original post by Hineshtailor

Same here. I also didn't use an example- mine was purely theory based :/

Reply 93

Puddles the Monkey

Original post by Makashima

thanks, would you able to modify the title and add 2015...it is a bit vague as ppl may think it is other years? thnz

All done

Reply 94

tanahm

Original post by *Stefan*

Mentioning that subsidies show the true value of the positive externality of a good was sufficient. You still ought to link that to how subsidies reduce market failure.

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Yeh I mentioned how it reduced the welfare loss from a msb msc diagram. Said how Subsidies help solve under consumption of merit goods etc

Reply 95

Joseph!?!?!?

stefan, i was just wondering i drew a diagarm of negatuve externalties in my essay and was just wondering how much i will be capped by, i drew other diagrams to which i think were correct but will drawing that one wrong diagram cap me by too much?
i wrote about other methods, advanatges and disadvangtes of subisidy to and think all that bit was correct.

Reply 96

_Fergo

Original post by Joseph!?!?!?

What explanation did you give for the diagram? I mean why did you use it?

They don't cap because of mistakes -provided you met the level criteria with other points, you can still earn high marks.

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Reply 97

Joseph!?!?!?

I was a bit rushed and was just simply trying to show market failure, a bit silly really!
Thanks very much for your rreply, hopefully they will adopt positive marking and I won't he to badly affected
Thanks again!!

Reply 98

_Fergo