The Student Room Group
Uni students - Complete our survey >>
Uni students - Complete our survey >>
Uni students - Complete our survey >>

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

Scroll to see replies

For the 10 marker I just evaluated the fact that in the long run deposits would increase to 20% and so demand for rented properties would decrease as they'd have to pay more to qualify for a mortgage which may not be an option as the properties were low end as stated in the case; those that were buying these rented properties may have a lower incomes, etc...
Original post by bulletman54
wasnt the PES negative ?


PES is always positive.
Original post by Dnkz7
In the exact position as you bro, macro will be our hero at the end of the day


I think it's more likely to be an indicator of the sort of questions they will throw at us in macro I.e. Long answer questions on irrelevant topics
Original post by Dnkz7
What graph did you draw, all I defined was what the price mechanism was and the three types to allocate resources - signalling, rationality and incentives then I became stumped
Just a normal demand and supply diagram and labelled the different price mechanism tools on it. It was required though, just helped me explain it better!
Did you put extension of demand or decrease supply for the multiple choice?
The help to buy scheme would have a short term benefit.
Original post by Chris141
PES is always positive.


What if a good or service has a maximum price put on it?
Original post by Bigbosshead
Did you put extension of demand or decrease supply for the multiple choice?


Extension
Original post by Bigbosshead
Did you put extension of demand or decrease supply for the multiple choice?


Demand.
but what is an 'extension' surely it is an expansion
The paper wasn't difficult, just poorly worded on the first question and the case study wasn't very nice
Original post by AstarAstarA
The paper wasn't difficult, just poorly worded on the first question and the case study wasn't very nice


What did you do for the 10 and 20 markers?
Reply 212
Avatar for Dabiri
Dabiri
1
Original post by zahanara
yeah but doesnt XED talk about quantity demanded of one good in relation to price of another? and it that question we were look at demand for both


Its was a decrease in price due to the Help to Buy scheme reducing price of buying housing - in relation to demand for rented housing which is a substitute I think
Original post by xJaayyy
What did you do for the 10 and 20 markers?


The 10 mark question was fine it was just about XED substitutes

20 mark question f was about subsidies for mortgages affecting the demand for housing. One the other hand, the inelastic supply was really the problem for housing allocation and whilst the government intervention was increasing the demand, they should have increased supply due to figure 1 and 2. The time lag as well with extract A evaluation. You could talk about there being an excess in demand/shortage in supply. The government turned to positive externality market failure into a government failure
(edited 7 years ago)
This paper was genuinely horrific. I was left stumped as were the schools in my area.
Original post by AstarAstarA
The 10 mark question was fine it was just about XED substitutes

20 mark question f was about subsidies for mortgages affecting the demand for housing. One the other hand, the inelastic supply was really the problem for housing allocation and whilst the government intervention was increasing the demand, they should have increased supply due to figure 1 and 2. The time lag as well with extract A evaluation. You could talk about there being an excess in demand/shortage in supply. The government turned to positive externality market failure into a government failure

I'll probably get NAQ for the 10 marker but I think I did pretty good on the 20 marker so thats alright then! I was aiming for an A it's pretty sad but we all learn!
Original post by AnIndianGuy
This paper was genuinely horrific. I was left stumped as were the schools in my area.


The problem was our economics department taught us that 10, 15 and 20 mark questions would be about government intervention and market failure - that something like price mechanism couldn't be a long answer question. This was based on the specimen and tutor2u papers
(edited 7 years ago)
Damnnn, I didn't use a ruler for a single one of my diagrams, do you reckon that will effect my marks?
Original post by AstarAstarA
The problem was our economics department taught us that 10, 15 and 20 mark questions would be about government intervention and market failure. That something like price mechanism could be a long answer question.


i predicted a regulation 20 marker but nothing like that. Also I was disappointed in the fact that taxes did not come up at all. The price mechanism question was relatively simple if you broke down all the functions and evaluated with government failure and distortion of price signals, which sadly I somehow forgot.
what did you guys say for f the 20 marker i was so baft ?

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you