AQA A-level Economics new 7136 - 06, 13 & 19 Jun 2017 [Exam Discussion]

Wait for context 1 question 1 was it the 3 or 4 firm concentration ratio?

context 1 3 firm, context 2 five country mean

For the context 1 9 marker I wrote that royal mail would produce where MC=MR for profit maximisation and that the universal post service requiring them to deliver 6 days a week would increase their output to where MC=AR so their allocatively efficient and to optimize consumer surplus? Can anybody tell me if I'm right or wrong???!!!

No point dwelling. Move on to the next one guys!

Also; for the 25 marker in Essay 3, do you need to talk about more than one policy?

If you were to:

- Acknowledge sugary drinks as a demerit good, resulting from imperfect information, which is information failure
- Use a diagram to show the effects of this demerit good in the free market (above the socially optimal level of output, where MSB=MSC)
- Define a tax, and refer to how it leftward shifts the S curve
- Use a diagram to show just that, whilst also showing the total tax paid, the total tax paid by the consumer, the total tax paid by the producer
- The advantages of tax (cost of negative externalities is internalised in the price of the good, so demand is reduced; revenue can be used to offset the negative externalities)
- The disadvantages of tax (increases cost of production reducing international competitiveness which may cause firms to relocate, doesn't work if demand is price inelastic, just because externalities can be offset does not mean they will, difficult to put monetary value on cost of the negative externalities)
- Mentioning how it depends on the price elasticity of demand, and how sugary drinks are more price elastic admittedly; but it does not mean they cannot switch to a cheaper sugary drink

How would this fare?

Cheers

To be honest that sounds almost exactly the same as my essay but I said that unhealthy food and drink could be addictive causing the PED to be inelastic. Other than that I added in a short paragraph about a potential black market that could form because I had some spare time but yeah, what you just said looks good

What was the concentration ratio ? On scenario 1

One way around this is if you refered to negative externalities associated with the impact on the NHS. More sugar consumed = more strain on health services = less health services available to others. Therefore the private cost of consuming these drinks e.g obesity is less than the social cost of insufficient health care available for others.

Hi everyone, I did context 2 on the gender pay gap and the essay 2 on poverty.

For the first 25 marker I wrote about how trade unions/ the NMW and progressive taxation and benefits could be used to reduce the gao in the economy and how successful each policy was.

For the second 25 marker I wrote about how the trickle down effect/economic growth could be used by the market forces to reduce poverty, and the NMW/progressive taxation and benefits for government intervention,

Does this sound about right on the whole? Found the paper fairly good.

Hi I did context 1 and essay 3. I also made a complete mess of it. Only got to write half of what I wanted to because of time constraints, I probably missed out by a whole grade because of this. I also completely misunderstood the 9 marker on context one. Anyone think they messed up?