Edexcel economics unit 1 and 2 retakes

I chose Q1 as soon as I saw the 30 marker, relatively nice considering the 2012 Q1 30 marker was very similar "Evaluate macroeconomic policies which may be used to reduce the level of unemployment in the UK"...

Reply 222

OP

Original post by wmurch

I chose Q1 as soon as I saw the 30 marker, relatively nice considering the 2012 Q1 30 marker was very similar "Evaluate macroeconomic policies which may be used to reduce the level of unemployment in the UK"...

What did you write about for that 8 marker that asked about falling real wages

Reply 223

Coolguy001

Do you think they'll accept interest rates as part of monetary policy for the 30 marker question on reducing unemployment?

Reply 224

Coolguy001

Original post by epic within

What did you write about for that 8 marker that asked about falling real wages

Inflation rising faster than wage growth, and a lack of aggregate demand causing derived demand for labour to fall and thus wages

Reply 225

Original post by epic within

What did you write about for that 8 marker that asked about falling real wages

Was it asking for its affects on the current account balance, I cant specifically remember the question? I can only remember the 8 marker asking for the effects of a decreasing pound on the UK economy.

Reply 226

tommyprice5

2

Original post by epic within

What did you write about for that 8 marker that asked about falling real wages

Falling AD therefore falling demand for labour (cyclical unemployment) and fixed wages falling due to inflation

Reply 227

Rough guide for Q1 30 Marker;

Up to 6 marks • Identification of low and stable unemployment/full employment as a government objective (2) • Identification of any macroeconomic policy as fiscal, monetary and/or supply side (reward implicit understanding) (2) • Use of data indicating extent of unemployment (2) • AD/AS diagram showing rightward shift in AD and/or AS curve or equivalent verbal analysis of how price level and real output are affected or PPF diagram showing rightward shift in PPF and/or a movement towards PPF (4 marks). Diagram showing AD and/or AS shifts to the right; axes labelled (1), equilibria labelled (1), AD/AS lines labelled (1), correct shift (1). No marks for diagram if shift in wrong direction. Explanation of how the policies might reduce the level of unemployment in the UK 12 marks (3 x 4 marks); • Fiscal expansion through government spending increasing employment • Reduction in taxation rates through borrowing or policy financed through lowering immediate tax burden increasing AD • Reduction in interest rates (or increase in money supply) increasing borrowing and reducing debt payments • Measures to increase incentives such as reduced marginal tax rates; • Reduction in benefits. • Measures to increase competitiveness and productivity through outsourcing and tenders;• Privatisation; • Health care improvements; • Training and education.• Increase price flexibility and signalling in the market (ie reducing the minimum wage) Reward other valid explanations Evaluation 12 marks (3 x 4 marks, OR 2 x 6 marks, OR 6 + 4 + 2 marks) Comments might include reference to • Tax cuts ineffective if used to increase savings or repay debts • Cuts in Bank of England’s interest rate ineffective if banks unwilling to lend or if banks do not reduce interest rates to customers • Identification of common elements of both policies e.g. cutting taxes as a demand management policy as well as improvement to incentives • Crowding out • Long term debt payments to repay will reduce future living standards • Time lag for supply side policies • Depends on the elasticity of the AS• Depends on magnitude of multiplier (i.e. increased savings ratio because of lack of confidence leading to lower multiplier) • Relative merits of policies which justifies prioritisation
Level Mark Descriptor Level 3 9-12 2 convincing points with at least one evaluative point Level 2 5-8 2 convincing explanations with no connections, or 1 convincing explanation with some good analysis but no evaluative point; 1 or 2 lessconvincing explanation with some evaluation Level 1 1-4 Identification of relevant points with or without brief evaluative keywords• Other things being equal Quality of written communications will be assessed in this question based on the candidate’s ability: • To present an argument and conclude on the basis of that argument • To organise information clearly and coherently • To use economic vocabulary appropriately • To use grammar, spelling and punctuation appropriately

Reply 228

Amandabunn9

Original post by Coolguy001

Do you think they'll accept interest rates as part of monetary policy for the 30 marker question on reducing unemployment?

I also wrote about interest rates and it's stressing me as it's not a government policy

Reply 229

OP

Original post by wmurch

Was it asking for its affects on the current account balance, I cant specifically remember the question? I can only remember the 8 marker asking for the effects of a decreasing pound on the UK economy.

It was the second question asking why the wage rate was negative during 2009 and 2013

Reply 230

OP

Original post by tommyprice5

Falling AD therefore falling demand for labour (cyclical unemployment) and fixed wages falling due to inflation

Yeah, I wrote about falling AD, wondering if an increase in immigration is a valid point because it decreases wages

Reply 231

OP

Answer for employment and unemployment question

Reply 232

Original post by epic within

It was the second question asking why the wage rate was negative during 2009 and 2013

Oh yeah, the question was asking why wage rates may have been low during that time. I spoke about the financial credit crunch in late 08, and companies losing profits/revenue and this may cause people to lose their jobs or accept lower wage rates etc. And then I spoke about increased immigration (as there was data given) and its effects on the supply of labour. It would likely increase the supply of labour and reduce wages as its more competitive. I also mentioned that typically Eastern European workers work for less, and that this might drive down wages.

Reply 233

OP

Original post by wmurch

Oh yeah, the question was asking why wage rates may have been low during that time. I spoke about the financial credit crunch in late 08, and companies losing profits/revenue and this may cause people to lose their jobs or accept lower wage rates etc. And then I spoke about increased immigration (as there was data given) and its effects on the supply of labour. It would likely increase the supply of labour and reduce wages as its more competitive. I also mentioned that typically Eastern European workers work for less, and that this might drive down wages.

This is exactly what I wrote

Reply 234

usi227

8

Anyone worrying about whether or not you could mention monetary policy in the 30 marker of question 1. Don't.
In the paper Jan 2013, one of the 30 markers was:
"Other than investing in education, evaluate policies a government can implementto raise living standards."
The mark scheme states:
Identification and explanation of the effects of specificpolicies - 12 marks (3 x 4 marks or 2 x 6 marks):
• Increased government spending (may count asup to 3 separate policies)
• Cutting tax
• Monetary policy, e.g. cutting interest rates
• Improved trade, e.g. export-led growth
• Supply side policies (may count as up to 3separate policies)
• Redistributive policies to increase livingstandards in short run and possibly long run
• Improve the quality of the living standards
Therefore even if it says government in the question- monetary policy will be accepted.

Best of luck with your next exams guys :smile:

Reply 235

username1182732

6

Original post by Princepieman

Did Q2, was pretty chill. 30 marker broke it into 3 bits speaking about how monetary policy affects consumers, the credit markets and firms. Threw in some real world examples. Didn't manage to finish an 8 marker properly but squeezed in time for the 12 and 16'ers. Overall a good paper.

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Can you remember the questions? Specifically the 8 and 12 marker just after the question asking how CPI was calculated

Reply 236

OP