OCR A-Level Economics H460 5th, 12th, 15th June 2018 [Exam Discussion]

Original post by mrz4073

Can you name few policies to increase labour flexibility?

- Subsidation of relocation of workers - geographical mobility.
- public spending on education/ training and apprenticeships for school leavers and employees. -occupational mobility
- access to job vacancy information

Reply 42

Original post by MajorFader

Honestly, it would be so juicy for a 25 marker on oligopolistic markets to come up? Love Labour market so hopefully econplusdal’s prediction is right...

How are you feeling?

Yes Econplusdal the man haha, he also suggests contestable markets and thats a bit of a dodgy one I guess from all market structure they can be. we won't have railways cuz that was on last year. Labour Markets is the biggest chapter so yippy. a lot of content

Im feeling a little sorta ready but a little sorta how do I answer question sorta thing. How are you guys feeling.

Reply 43

Original post by abc_123_

Although I'm not the person you quoted, I have a couple of ideas:
1. Decrease trade union power (increase contractual flexibility)
2. Introduction of zero hours contracts (UK has these, but they're illegal in other EU countries).
3. Increase in education & training => increased geo & occupational flexibility
4. Free movement of labour (joining EU for example)
5. House prices (e.g. Help to Buy, Equity Loan etc)
6. Info Provision

Hope this helps :smile:

x

Thankss. U see with the zero hour contract, what does it mean and how could u evaluate it?

Reply 44

Original post by MajorFader

Honestly, it would be so juicy for a 25 marker on oligopolistic markets to come up? Love Labour market so hopefully econplusdal’s prediction is right...

How are you feeling?

What are the evaluative points u can make for oligopoly?

Reply 45

abc_123_

Original post by mrz4073

Thankss. U see with the zero hour contract, what does it mean and how could u evaluate it?

A zero hours contract means that an employer has no legal obligation to give you a certain number of hours for a week: he could decide to give you no hours if business is slow, or ask you to come in for 10+ hours when business is good: this is often the case with jobs in retail (cafés, restaurants etc).

0 Hours Contacts are good for the employer, because it means he only needs to pay for the amount of work he needs (i.e. he doesn't have an obligation to pay someone to stand around doing not a lot).

However, it can be bad for the workers for a number of reasons:
1. Often they're not protected by trade unions
2. They have employment and income insecurity
3. Can be underemployed

Does anyone know about the impact of changes in pensions on the labour market or have any good current info about pensions / how the gov are trying to change pensions? x

(edited 5 years ago)

Reply 46

Original post by abc_123_

A zero hours contract means that an employer has no legal obligation to give you a certain number of hours for a week: he could decide to give you no hours if business is slow, or ask you to come in for 10+ hours when business is good: this is often the case with jobs in retail (cafés, restaurants etc).

0 Hours Contacts are good for the employer, because it means he only needs to pay for the amount of work he needs (i.e. he doesn't have an obligation to pay someone to stand around doing not a lot).

However, it can be bad for the workers for a number of reasons:
1. Often they're not protected by trade unions
2. They have employment and income insecurity
3. Can be underemployed

Sweeet

Reply 47

Original post by mrz4073

What are the evaluative points u can make for oligopoly?

Against points:

-If firms collude, there is a loss of consumer welfare because prices are raised but output is reduced.

- collusion leads to monopoly power- makes it harder for firms to enter the market. Lack of competition means firms have no incentive to lower average costs so x ineffciency.

If it is not enough tell me.

Reply 48

Original post by MajorFader

Against points:

-If firms collude, there is a loss of consumer welfare because prices are raised but output is reduced.

- collusion leads to monopoly power- makes it harder for firms to enter the market. Lack of competition means firms have no incentive to lower average costs so x ineffciency.

If it is not enough tell me.

A* candidate.

Reply 49

Original post by mrz4073

A* candidate.

I wish lol

Reply 50

123good2bme

Original post by MajorFader

Honestly, it would be so juicy for a 25 marker on oligopolistic markets to come up? Love Labour market so hopefully econplusdal’s prediction is right...

How are you feeling?

What was econplusdal’s prediction?

Reply 51

Original post by 123good2bme

What was econplusdal’s prediction?

Market failure is likely to come up in a longer answer question.

Reply 52

abc_123_

Can anyone help me with the following questions:
1. Evaluate alternative maximisation objectives for businesses to profit maximisation, including sales revenue maximisation, sales volume maximisation, growth maximisation and utility maximisation.
2. Evaluate non-maximising objectives for businesses, such as profit satisficing, social welfare, CSR.
3. Evaluate the assumptions underlying profit maximisation as a business objective.
4. Evaluate, with the aid of a diagram, the usefulness of perfect competition theory.
5. Evaluate the impact of demographic changes on the labour market
6. Evaluate the impact of the introduction and changes in pensions on the labour market

sorry for the long list, seriously stressing about tomorrow :blush:

x
Any help would be greatly appreciated :smile:

x

Reply 53

Original post by abc_123_

Can anyone help me with the following questions:
1. Evaluate alternative maximisation objectives for businesses to profit maximisation, including sales revenue maximisation, sales volume maximisation, growth maximisation and utility maximisation.
2. Evaluate non-maximising objectives for businesses, such as profit satisficing, social welfare, CSR.
3. Evaluate the assumptions underlying profit maximisation as a business objective.
4. Evaluate, with the aid of a diagram, the usefulness of perfect competition theory.
5. Evaluate the impact of demographic changes on the labour market
6. Evaluate the impact of the introduction and changes in pensions on the labour market

sorry for the long list, seriously stressing about tomorrow :blush:

x
Any help would be greatly appreciated :smile:

x

1. Rev max MR=0 could be to set a predatory price to drive out competition. Sales max AR=AC to limit price and also to flood the market with products to get brand loyalty. Growth max is similar. Utility max when consumers consume what best satisfies them? Not sure. Divorce between control and ownership means Managers might pursue these objectives in order to claim higher salaries.
2. CSR means being more environmentally friendly, giving in work benefits, ensuring a minimum price for raw material suppliers etc. Profit satisficing means making enough profit to keep shareholders satisfied. Again could be pursued by managers.
3. Firms may not always choose to profit maximise and aim for other objectives like sales max to get their brand known and then raise price. Also firms may not know the point where MC=MR
4. Perfect comp won’t come up.
5.
6.

Hope that helps

(edited 5 years ago)

Reply 54

Original post by abc_123_

Can anyone help me with the following questions:
1. Evaluate alternative maximisation objectives for businesses to profit maximisation, including sales revenue maximisation, sales volume maximisation, growth maximisation and utility maximisation.
2. Evaluate non-maximising objectives for businesses, such as profit satisficing, social welfare, CSR.
3. Evaluate the assumptions underlying profit maximisation as a business objective.
4. Evaluate, with the aid of a diagram, the usefulness of perfect competition theory.
5. Evaluate the impact of demographic changes on the labour market
6. Evaluate the impact of the introduction and changes in pensions on the labour market

sorry for the long list, seriously stressing about tomorrow :blush:

x
Any help would be greatly appreciated :smile:

x

1. Sales Revenue Max – when a firm produces at MR=0 to increase sales but reduce profit, this can increase market share.
Sales Volume maximisation occurs when AR=AC… so low prices and high output, a firm may do this to increase market share or to increase barriers to entry. However the Competition commission may investigate these firms to prevent this.
Growth max – increase size of firm as much as possible e.g. taking on more workers. Once a firm reaches a certain size, barriers to entry can increase.

2. Profit satisficing to get enough profits to satisfy dividends paid to shareholders. An oligopoly may do this as increasing price to increase profits may cause a loss of market share (they act interdependently)
( the other 2 idk)

Its too stressful this haha

Reply 55

abc_123_

Original post by mrz4073

4. Perfect comp won’t come up.

Hope that helps

Thank you

Why do you think perfect competition won't come up? x

Reply 56

Original post by abc_123_

Thank you

Why do you think perfect competition won't come up? x

I know you didn't ask me but, it came on last year as a 25 marker option so its less likely

Reply 57

Original post by abc_123_

Thank you

Why do you think perfect competition won't come up? x

Cos on last year’s paper they asked a 25 marker on perfect comp. this year I’m betting on oligopoly/monopolistic

Reply 58

Original post by mrz4073

Cos on last year’s paper they asked a 25 marker on perfect comp. this year I’m betting on oligopoly/monopolistic

what do you think on contestable markets?

Reply 59