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Opinions on Edexcel Economics Paper 1 (new spec)?

amelienine

How do you think it went? I was pretty demoralised after it but it's a new spec anyway...

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Reply 1

ollie.22

I mean, evaluate the price mechanism for 15 marks was pretty tough

Reply 2

amelienine

Original post by ollie.22

I mean, evaluate the price mechanism for 15 marks was pretty tough

Yeah, how do you even evaluate that? I babbled about price elasticities having an effect but on it but that was about it... didn't really know what else to write. :/

The question about the impact of the scheme on rented houses, is that something to do with XED? I wasn't too sure.

Reply 3

danae98

Even though the housing market is simple, the data had no application! and the questions were strange, especially that unexpected 15 mark

Reply 4

amelienine

Original post by danae98

Even though the housing market is simple, the data had no application! and the questions were strange, especially that unexpected 15 mark

I heavily referenced the data for the 20 marker. I did the government intervention and I didn't realise that I didn't have to reference the text... :/ I talked a lot about the flooding scheme that was set up and how that had external benefits etc. Now I'm afraid that's completely wrong. :frown:

Reply 5

ollie.22

Original post by amelienine

I guess you'd get some marks for taking about elasticities because it technically does fall under 'evaluation'. Someone in my class mentioned how it doesn't take into account external benefits and costs. - But it was a dreadful question.

I wrote about how because they weren't offering Help to Buy any more, more people on lower incomes would have to save for longer (link to q by quoting that it would take about 10 years rather than 3 to save), and how that would affect the demand for rented houses. i.e.) increased demand - drew S/D diagram shifting D curve rightwards. And evaluation point was that in the short term there may be excess demand as supply of rented houses was likely to be inelastic but long term it would be more elastic.

Reply 6

Arran1109

...

(edited 7 years ago)

Reply 7

Sameerio

15 marker and question F punched me in the throat

Reply 8

Bruce267099

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?

Reply 9

danae98

Original post by Bruce267099

I wrote about employment, increased demand, and that the government will receive extra revenue from property tax which it can re inject in the housing sector!

Reply 10

Habibibibi

For the 20 i said that since the housing market and rented market are substitute goods. Subsidising loans would cause an increase in demand for the housing market which lowers demand for the rented market. This could lead to government failure as there is a mis allocation of resources, and landlords will revieve less and drew the externality.

Is there any truth in that? Lol.

Reply 11

abellboy

I didn't have enough time to evaluate the last two questions well which was so annoying as I thought both questions were nice, have to get an A so need to smash macro. Time management is my biggest weakness. 😤

Reply 12

Dabiri

Original post by Bruce267099

Isnt that Macroeconomic obejctives though?

Reply 13

danae98

Original post by Dabiri

Isnt that Macroeconomic obejctives though?

they could be microeconomic if you directly link to the housing market (eg that the employment was for construction workers)

Reply 14

Dabiri

Original post by danae98

they could be microeconomic if you directly link to the housing market (eg that the employment was for construction workers)

I guess but the eval for the third point is quite wide and hasn't been related to housing - it talks about benefits to economy as a whole

Reply 15

Bruce267099

Original post by Dabiri

Isnt that Macroeconomic obejctives though?

I linked directly to the housing market. Anything in macroeconomic you can apply to theme 1 as long as you talk on a small scale i.e.the housing market.

Reply 16

keenafied

Original post by Habibibibi

Sorry to burst your bubble but it isn't really government failure, however it may be on the slight slide as its an unintended consequence, but I doubt it.

Reply 17

17lina

Hi guys I have a few questions
For question 1a. Would it be wrong if i said for specialisation trade needs to be enabled therefore money will act as a measure of value to exchange good and services as people specialise in different goods?

For the 4 marker calculation question, is it wrong if I say its a 25% increase I just used 375 as the value of jan 2015...

For the 6 marker question, the producer surplus one, is it alright if I just write the definition with a diagram and identify the area increased? I didn't put much other analysis on it

For the 15 marker question, I explained there were 3 functions and wrote only about 2 of them.. Without a diagram..Do you think I would lose marks? This was horrible anyway ;(

Micro was just so horrible it just keeps whizzing arorund my head but hope we get on to macro soon and c1.. And fp1... Haha

Reply 18

amelienine

I misunderstood the 20 marker (I did the government intervention one). I didn't realise we didn't have to reference the extract but I referenced a lot from the extracts given. I spoke a lot about how the government subsidised the flooding project etc and how this caused positive externalities. (I'm completely wrong, I know).

Then I evaluated and said that subsidies are an opportunity cost to the government, and it's how it's difficult to quantify the positive externalities from government intervention.

I put in definitions for government intervention and subsidy. And diagrams for subsidies and positive externality.

Would I still get marks for that? I know it's not much but I don't want a 0 either.

Reply 19

3121

Original post by 17lina

For 1a you should've defined money as a medium of exchange but the part about trade is correct.

I did 23% (370), I'm not sure if you'll get away with that because the line was clearly under BUT that big dot did confuse it and because of it I would think they'd accept it providing you showed your working.

Sadly I do think you've lose marks for the 15 marker, you should've used the 3 functions as your 3 points, used ext. benefits as the evaluation with a diagram.. You should've looked to squeeze in a diagram even if it just showed a contraction/extension in supply & demand

But there's still macro to look forward to and I do strongly believe the grade boundaries will be lower so don't give up and smash unit 2