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    Increase in existing taxes, subsidy on substitutes, better information, de-merit good, negative externality
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    (Original post by joebackhouse)
    Increase in existing taxes, subsidy on substitutes, better information, de-merit good, negative externality
    Good! i wrote about that too along with bans. Can't see why people did the context one- it looked so much harder
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    Yeah I also wrote about a full ban and why its a bad idea for my evaluation
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    can someone fire out some of the multiple choice questions that came up today
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    yeah, i was quite fortunate too as my teacher gave us this question to do back in february so as soon as i saw it i was quite relieved
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    and also did you have to come up with your own policies for the cigarettes 25 marker or would it have been okay just to refer to the policies provided within the data sheets.
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    (Original post by Satch13)
    What did people write about for the cigarette 25 marker?
    Intro: Market Failure defined and brief explanation of context.
    P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
    P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
    P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
    P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
    Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

    Included more just don't remember.
    Hope this helps.
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    (Original post by JackRees90)
    and also did you have to come up with your own policies for the cigarettes 25 marker or would it have been okay just to refer to the policies provided within the data sheets.
    I talked about the policies mentioned as potential solutions, but used their limited impact in the extracts to inform my evaluation.
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    (Original post by rohanl98)
    Intro: Market Failure defined and brief explanation of context.
    P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
    P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
    P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
    P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
    Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

    Included more just don't remember.
    Hope this helps.
    Wouldn't you also have to talk about other interventions? For example Pmin, taxes as well as regulation and talk about there positive and negative effects? Just wondering
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    (Original post by rohanl98)
    Intro: Market Failure defined and brief explanation of context.
    P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
    P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
    P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
    P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
    Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

    Included more just don't remember.
    Hope this helps.
    Welp I got some of the stuff here, but seems like I didn't apply/read the context enough
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    (Original post by rohanl98)
    Intro: Market Failure defined and brief explanation of context.
    P1: I drew a negative externalities diagram and said how negative externalities would enforce the regulation argument. So, solution is to stick an indirect tax on it. However, that may not work as cigarettes are price inelastic due to the addictiveness.
    P2: In the extract it said how pregnancy affects child birth i said, if regulation occurred then women would stop smoking and therefore population would increase and so would labour force thus expanding productive potential in the long run.
    P3: Regulation is bad cuz more policing as the text mentioned the £50 fine so linked it to that. More costs to policing the regulation which results in government failure. Also, more tax could create a black market that would mean more costs for police reinforcing government failure.
    P4:Lots of jobs in tobacco industry therefore economy may suffer as a harsh regulation as stated in the extract would make businesses shutdown. Therefore laying off jobs.
    Evalution: Just stated long term and short term effects but overall said that regulation wouldn't be beneficial as it would result to government failure.

    Included more just don't remember.
    Hope this helps.
    Thanks, i used facts and figures from the context, but didn't write about pregnant women smokers
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    "Demerit goods are goods that are overprovided by the market mechanism - they are commonly associated with negative externalities. Examples include cigarettes and alcohol"

    Is that worthy of the 3 marks?
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    (Original post by JackRees90)
    can someone fire out some of the multiple choice questions that came up today
    F to E2 for the vertical distance, short time scale effects supply, 240 for that pes thing, monopoply- low output less efficient, demand line- factors of demand constant except price, shift dowards for AC curve. Thats all i remember- what did you do for that one on productivity
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    (Original post by JackRees90)
    can someone fire out some of the multiple choice questions that came up today
    F to E2 for the vertical distance, short time scale effects supply, 240 for that pes thing, monopoply- low output less efficient, demand line- factors of demand constant except price, shift dowards for AC curve. Thats all i remember- what did you do for that one on productivity and the total revenue with profit and cover losses
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    (Original post by Kholmes1)
    Was that the one where you had a choice of four curves. D was just a straight line. I put C. Can't really remember anything else. If you know what question im talking about, what did you put?
    I put C aswell 😭
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    (Original post by JackRees90)
    "Demerit goods are goods that are overprovided by the market mechanism - they are commonly associated with negative externalities. Examples include cigarettes and alcohol"

    Is that worthy of the 3 marks?
    Yes i think so.
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    Intro: demerit goods, market failures and examples of negative externalities
    P1: regulations why they are good with graph then evaluated them why they are bad
    P2: Taxes: why they are good/what in theory should happen with a graph, then wrote about how taxes generate black markets and how the tax wouldn't work as cigarettes are inelastic
    P3: Information provided and how it would work in the long term, but wouldnt work in the short term
    Conclusion: Regulations and tax would help reduce in the short term but would't have a huge effect adn information to under 18's would/could reduce smoking and the market failures associated with it in the long term
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    (Original post by Ba1242)
    I put C aswell 😭
    what was the answer? I put B
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    (Original post by Ajan123)
    Wouldn't you also have to talk about other interventions? For example Pmin, taxes as well as regulation and talk about there positive and negative effects? Just wondering
    That's how I did it;

    P1: Show market failure on MPC/MPB diagram, cause of it. Explain why there is market failure due to externalities etc.

    P2: Regulation, diagram showing it. Chains of reasoning explaining how it fixes the market failure. It's good as it had legal backing, directly affects the quantity etc. Evaluation; hasn't worked as seen in the extract. Also expensive to enforce, may result in government failure.

    P3: Taxation, diagram showing it. Chains of reasoning explaining how it fixes market failure. Good as it raises money rather than spends it like regulation etc. Evaluation; hasn't worked as seen in extract. Also cigarettes are addictive, so very price elastic, so unlikely to be very successful.

    P4: Price floor/minimum legal price, diagram showing it. Chains of reasoning explaining how it fixes market failure. Good as firms cannot take on cost, so it is more likely to cut consumption than taxation etc. Evaluation; price inelastic, so limited effect.

    P5: Conclusion. Regulation and taxation have done little as seen in extract. Regulation and price controls incur a cost of enforcement. Therefore they are best used together, as intakes from taxation can fund the enforcement of others. However, possibility of government failure etc.
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    i di- Intro- define market failure, in direct tax and state the critieria i would use to aid my judgement e.g equity.
    Para1- solve a partial market failure- used external costs of consumption diagram alongisde a tax diagram to show the contraction of the over provision. Evalutation- weak as demand may be price inelastic due to it being addictive- strong, extract states 2/3 smokers die early- indicates increased info on long run private costs which may deter consumption.

    Para 2- equity- inequitible as unemployment is likely to increase in the cigareete industry due to a fall in demand. Eval- strong, ex E states that it also effects choice which is inequitible for consumer. Weak- it is equitible to reduce the consumption of negative goods etc.

    Conlusion- underlying issue gov failure v mkt failure, e.g over provision and admin costs. Combo of policies is best and then landed on subsidies to alternative goods e.g e cigs and then said data can contradict my conclusion. Hope i have scored highly
 
 
 
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