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Edexcel GCE 19 May Economics Unit 1 New Spec

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On the 20 mark question it talked about the microeconomic effects.

I defined government intervention and then i went straight into my points.

In point 1 i talked about an extension in demand as supply is increasing, i applied it to the housing market and said that they will have more wealth and evaluated saying has inelastic supply so demand won't change much

In point 2 i talked about an increase in revenue for firms, i drew another demand and supppy diagram and said it will lead to more investment.I evaluated saying saying 10000 new houses isn't that much.

In point 3 i talked about increased employment as the 10000 new houses will need building which i said will cause more revenue in an economy, which will be multiplied in the circular flow. I evaluated saying that in the short run there will be no work but in the long run there will be very little and it will only benefit cambridge and not the whole economy.

Conclusion i talked about short run and long run and explained it in relation to all my points and evaluations

Have i done it right?

(edited 7 years ago)

Reply 21

FXW13

Hold up. can anyone explain to me microeconomic objectives because... what? that wasn't anywhere near the revision notes or specification

Reply 22

Bruce267099

Original post by FXW13

Hold up. can anyone explain to me microeconomic objectives because... what? that wasn't anywhere near the revision notes or specification

It wasn't microeconomic objectives it was effects. This basically meant what would government intervention cause in the housing market. I.e. increase demand, revenue, employment, living standards.

Reply 23

FXW13

Original post by Bruce267099

It wasn't microeconomic objectives it was effects. This basically meant what would government intervention cause in the housing market. I.e. increase demand, revenue, employment, living standards.

No? it said something along what microeconomic objectives effect the housing economy with government intervention.
i may be wrong but im pretty sure the main question was based around microeconomic objectives. i talked about economic agents and how it would affect them.

Reply 24

FXW13

Original post by Bruce267099

It wasn't microeconomic objectives it was effects. This basically meant what would government intervention cause in the housing market. I.e. increase demand, revenue, employment, living standards.

don't worry i also talked mainly about what government interventions where possible and how it linked in with economic agents

Reply 25

Bruce267099

Original post by FXW13

don't worry i also talked mainly about what government interventions where possible and how it linked in with economic agents

Did you do question f. I did that one and i just had to talk about the effect of government intervention, not the intervention itself because it didn't ask for that.

Reply 26

FXW13

Original post by Bruce267099

Did you do question f. I did that one and i just had to talk about the effect of government intervention, not the intervention itself because it didn't ask for that.

Yeah i did. i said what gov interventions where, listed 3 of them, said how they affect housing and then talked about consumers and producers and how they're affected and the government

Reply 27

Bruce267099

Original post by FXW13

Yeah i did. i said what gov interventions where, listed 3 of them, said how they affect housing and then talked about consumers and producers and how they're affected and the government

God we talked about completely different things, well i suppose it was an open question. I just talked about increased employment, higher firm revenues and extension in demand for my initital points then explained them.