2016 Edexcel Economics A: Paper 1 Intro To Markets And Market Failure (May 16th)

OP

Economics - Definitions and Evaluation (1).jpg199.1KB

Original post by dfagbenro

could you show the mind maps you made with the evaluation points please?

Yep, sure!

Economics - Definitions and Evaluation .2 (2).jpg208.2KB

Thank you!

Could you please give model for answering exam questions

Reply 25

Would you possibly mind just giving a brief summary of your 15 and 20 marker structure? Would be a great help, thanks!

Reply 26

keynes24

10

Original post by BadundeBrian

Would you possibly mind just giving a brief summary of your 15 and 20 marker structure? Would be a great help, thanks!

Remember that is level based now. You should look at the sample assessment material mark scheme and look at the description of each levels. Having the structure is good for planning but without a good development you are going to get stuck at a low level

Reply 27

http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/teaching-materials/AS_Economics_A_Exemplar_Booklet.pdf

Original post by keynes24

Remember that is level based now. You should look at the sample assessment material mark scheme and look at the description of each levels. Having the structure is good for planning but without a good development you are going to get stuck at a low level

Yeah I know, would you possibly mind giving 1 of youre 20 mark questions (any i dont mind)? Like take a picture of it?

Reply 28

keynes24

10

Original post by BadundeBrian

Yeah I know, would you possibly mind giving 1 of youre 20 mark questions (any i dont mind)? Like take a picture of it?

Reply 29

http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/teaching-materials/AS_Economics_A_Exemplar_Booklet.pdf

Original post by keynes24

Thank you very much, didn't even realise this existed! Thanks for your time!

Reply 30

Hot&SpicyChicken

3

Yo big man - 'thinkecon' can you please help me out here. I dont really understand these few points about the evaluation of the fiscal policy, and was wondering if you could help me out, thanks much appreciated:

When a government deliberately sets out to expand its spending, peple will try to cash in on this y increasing their pay demands, and the effect will be increased wages rather than expanded output

- There are also crowding-out effects of increased GOV spending. If the government decides to pay for a service (e.g. a hospital) there is less scope for a private company in the vicinity to offer essentially the same service.

- There is also crowding out in the sense that when the government runs a deficit it needs to raise finance, which, in times when credit is less readily available, stifles private initiative. (IT can be argued that the expansionary fiscal policy simply causes inflation because the debt issued to finance the expanse is so liquid that it acts like printing money.

Reply 31

OP

Original post by Hot&SpicyChicken

Yo big man - 'thinkecon' can you please help me out here. I dont really understand these few points about the evaluation of the fiscal policy, and was wondering if you could help me out, thanks much appreciated:

1. When a government deliberately sets out to expand its spending, peple will try to cash in on this y increasing their pay demands, and the effect will be increased wages rather than expanded output

2. There are also crowding-out effects of increased GOV spending. If the government decides to pay for a service (e.g. a hospital) there is less scope for a private company in the vicinity to offer essentially the same service.

3. There is also crowding out in the sense that when the government runs a deficit it needs to raise finance, which, in times when credit is less readily available, stifles private initiative. (IT can be argued that the expansionary fiscal policy simply causes inflation because the debt issued to finance the expanse is so liquid that it acts like printing money.

Sure, have labelled your points 1, 2 and 3 and explanations below:

1. Moral Hazard: when the government announces an new project, those in charge of organising will not be paying for the project themselves —> no, tax payers will be paying! —> so the organisers have little incentive to keep costs low —> if costs rise, they don't pay, the tax payers do (this is called moral hazard) —> as a result, builders/architects etc. employed by the gov. will take advantage and demand higher wages —> after all, the gov. organisers won't care because the tax payers are the ones paying —> so gov. organisers will agree to increase these employees wages —> creates wage inflation —> higher wages —> higher production costs for businesses —> SRAS shifts in —> inflation higher + lower growth

2. Crowding Out: ↑ government spending on infrastructure —> increases demand for land, labour, capital and borrowed money —> ↑ in rent costs, wages, cost of capital and ↑ the interest rate (the price of borrowed money) —> costs of production for private firms ↑ —> private firms are less able to supply —> SRAS shift in + ↑ interest rate —> reduces investment (more costly to borrow for investing) —> less investment in new machinery —> long run growth will suffer, too

3. Already covered in crowding out^, the gov. needs to borrow funds, it does that buy increasing demand for borrowed money —> increases the interest rate etc. (I can explain it properly if you want, but this is going a little beyond the scope of the A Level course and involves price-yield relationships - you can look it up under "fiscal theory of the price level", don't bother if you just want 100% at AS Level)

I hope that helps :smile:

Reply 32

Hi there mate, I have my Economics Paper 1 AS in two weeks from tomorrow, just wondering whether it would be possible for you to have a look at my 10,15 and 20 mark answers to a paper I did the other day if I were to type them up? I adapted 3 questions from an old spec paper to the new format and answered them.
Would this be something you were willing to do? As is tell me what mark you think they would have achieved and how I could improve, just asking before I type them up? Thanks a lot!

(edited 7 years ago)

Reply 33

OP

Original post by BadundeBrian

Hi there mate, I have my Economics Paper 1 AS in two weeks from tomorrow, just wondering whether it would be possible for you to have a look at my 10,15 and 20 mark answers to a paper I did the other day if I were to type them up? I adapted 3 questions from an old spec paper to the new format and answered them.
Would this be something you were willing to do? As is tell me what mark you think they would have achieved and how I could improve, just asking before I type them up? Thanks a lot!

Sure go ahead!

Posted from TSR Mobile

Reply 34

Original post by thinkecon

Sure go ahead!
Posted from TSR Mobile

Thanks so much man, you don't understand how much this will help. I'll send them in about an hour and you can mark them whenever's convenient.Thanks again !

Reply 35

qs for econ tut.docx190.3KB

Right, I've attached my answers to the adapted questions for Section B of the old Edexcel GCE Economics AS spec Unit 1 May 2012 Q's 10 (c) (d) and (e)
(the markscheme is here:http://qualifications.pearson.com/content/dam/pdf/A%20Level/Economics/2013/Exam%20materials/6EC01_01_rms_20120816.pdf)
Rather than using the old mark allocation I changed these three questions to 10, 15 and 20 mark questions.
Would it be possible for you to read my answers and give me a mark and some advice for what to do better for these high mark questions?
Thank you a lot for your time

Reply 36

Original post by thinkecon

Sure go ahead!

Posted from TSR Mobile

Any update on when you think you'll get around to doing this? Thanks.

Reply 37

OP

Original post by BadundeBrian

Any update on when you think you'll get around to doing this? Thanks.

Will allocate it to an hour with a low opportunity cost, will have it done before your exam on the 16th obviously.

Reply 38

nickg15b

11

Original post by thinkecon

Will allocate it to an hour with a low opportunity cost, will have it done before your exam on the 16th obviously.

Original post by BadundeBrian

Any update on when you think you'll get around to doing this? Thanks.

Original post by Hot&SpicyChicken

Yo big man - 'thinkecon' can you please help me out here. I dont really understand these few points about the evaluation of the fiscal policy, and was wondering if you could help me out, thanks much appreciated:

When a government deliberately sets out to expand its spending, peple will try to cash in on this y increasing their pay demands, and the effect will be increased wages rather than expanded output

- There are also crowding-out effects of increased GOV spending. If the government decides to pay for a service (e.g. a hospital) there is less scope for a private company in the vicinity to offer essentially the same service.

- There is also crowding out in the sense that when the government runs a deficit it needs to raise finance, which, in times when credit is less readily available, stifles private initiative. (IT can be argued that the expansionary fiscal policy simply causes inflation because the debt issued to finance the expanse is so liquid that it acts like printing money.

Economics Whatsapp group:
http://www.thestudentroom.co.uk/show...1#post64565151

Reply 39