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**********OFFICIAL OCR ECONOMICS F582 21st MAY 2014 THREAD************ Watch

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    Definately the hardest out of all the papers and 18 marks, but fairly easy, managed to reach the 18 mark in 35 mins and then write an 8 page essay. I reckon the examiners would be liniant and i'm guessing 46 will be an A, but they'll make it harder to get an E
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    (Original post by Vivixn)
    If you reckon some are my points are wrong, please tell me and if you had written different things, please do share!
    I feel like people strayed from the essay question:

    It asked for whether it is always beneficial to an economy when a BoP current account deficit changes to a CA surplus.

    It didn't ask for what policies governments should adopt. In the conclusion/evaluation I think you should've talked about how a surplus isn't necessarily always beneficial to the economy due to (your disadvantages). I think that "governments may want to adopt supply-side policies to combat the rise in inflation" wasn't the way to go for the evaluation, as it didn't target the question specifically.

    Just my 2 cents
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    (Original post by Oliver G)
    I did write about the above but I also said that the current account being a surplus could improve the budget deficit, is that even right?
    Oh I had also included that in the benefits, but I have no idea tbh x)
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    (Original post by Vivixn)
    For the Essay, long story short:

    Benefits
    - A trade surplus is when exports exceed imports, (X-M)^
    - It's a componant of AD, net exports ^ therefore AD^
    - Creates growth and Reduces Cyclical Unemployment

    - It is also a massive injection into the circular of flow
    - Explained - one's expenditure is another's income etc.
    - Positive multiplier effect may occur

    Costs
    - Inequality of wealth increases
    - Inflation occurs, which ^ price of exports again therefore has no long term affect

    Judgement
    - Depends where the economy is operating at.
    - What type of policy the economy will use - Interest or Supply

    Opinion
    Trade surplus is good but will be good to use supply policy to address the increase in inflation


    If you reckon some are my points are wrong, please tell me and if you had written different things, please do share!
    How many marks could i possibly get in the essay for doing everything you have said but missing out on the judgement points??
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    (Original post by Vivixn)
    Yeah you'll get marks on the balance of payments definition and as for the current account you do have the idea there, so you'll most likely get marks for that too.
    Thank you very much for this I feel a lot better now! So I have a chance of getting higher than 4 marks for the essay? sorry I just freaked out so bad!
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    (Original post by kingdoo)
    I said a few of those for the depends on as in why they were bad demand pull inflation, lack or capital goods due to the increase in price of imports.
    In which case, you're in good stead for an A/A*. Seems the boundaries will be roughly 46+ for an A and i'd say I dropped no more than 8 marks total. Unit one paper was very much the same. Looks like the southampton university dream is alive
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    (Original post by Luna14)
    Thank you very much for this I feel a lot better now! So I have a chance of getting higher than 4 marks for the essay? sorry I just freaked out so bad!
    In retrospect, it really isn't too challenging to achieve an A even with failing the 18 marker. Lets say you only manage 10/18. In theory, this is damaging to your overall grade significantly but I find the short answer questions pretty easy so if you manage 38/42 on those, thats a 48/60 and an A grade. I wouldn't stress, the boundaries may be lower than expected as the consensus seems to be that it were hard.
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    (Original post by fjb96)
    In which case, you're in good stead for an A/A*. Seems the boundaries will be roughly 46+ for an A and i'd say I dropped no more than 8 marks total. Unit one paper was very much the same. Looks like the southampton university dream is alive
    Yeah I really hope so I think I stuck to the question well as in why a suplus is good stating this like increased economic growth due to an increase in net exports, a decrease in unemployment particularly cyclical an increase in consumer disposable income and so this may mean that less benefits are going to need be spent and more tax revenue so more money can be spent on healthcare and education which in the long term could see an improvement in AS.

    I went to Southampton Uni it was so nice but I am unsure about the course (I want to do geography). But I will probably be applying their. Good luck and yeah I hope this equals an A but I am unsure about a few smaller questions I think I may have lost between 5 and 15 marks including the 18 marker so overall it went well.
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    (Original post by Knowing)
    I feel like people strayed from the essay question:

    It asked for whether it is always beneficial to an economy when a BoP current account deficit changes to a CA surplus.

    It didn't ask for what policies governments should adopt. In the conclusion/evaluation I think you should've talked about how a surplus isn't necessarily always beneficial to the economy due to (your disadvantages). I think that "governments may want to adopt supply-side policies to combat the rise in inflation" wasn't the way to go for the evaluation, as it didn't target the question specifically.

    Just my 2 cents
    My focus was wrong. I talked about significence of a c account deficiet, the costs/benefits of this, and how it can be worse if its caused by structural problems, and ways to get a surplus. is there any chance of scoring any marks at all?
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    (Original post by GeorgeMacintyre)
    My focus was wrong. I talked about significence of a c account deficiet, the costs/benefits of this, and how it can be worse if its caused by structural problems, and ways to get a surplus. is there any chance of scoring any marks at all?
    You'll at least get L1-L2 marks if you defined CA deficit/surplus and analysed the consequences. Not sure how many if any you'd get for L3-4 though. You may be capped at 8 marks or 13 marks depending on your analysis and whether you analysed what a surplus does that is beneficial.
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    I think it was important to stress at the end of the essay that whether or not moving from a deficit to a surplus is beneficial to an economy depends on why the movement has occurred, if it's due to changes in income and the exchange rate that is less desirable than it arising from gains in international competitiveness because it won't be as long lasting
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    anyone any idea on how many marks i could get ?
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    (Original post by May-o2q)
    Yr essay plan is so good that u made me feel like I threw rubbishes on my essay.......


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    i did mostly this in the exam, everyone else foudf it hard but i thought it was ok, i wonder if thats because i missed something haha
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    (Original post by matthang)
    2 probs
    woooooow for the calculation i got 63 billion - is that wrong?
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    (Original post by sunderand9)
    How many marks could i possibly get in the essay for doing everything you have said but missing out on the judgement points??
    Urm well I've just taken the exam just like you have so I can't guarantee my points are right :l But without a judgement point I think you have capped yourself at about 16 marks? You will have to check previous mark schemes.
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    (Original post by fjb96)
    I feel you missed out on the fact that the term trade deficit can be a paradox in that if the goods that are being imported are heavily based on capital machinery to increase production and output, the long term current account position may be vastly different in terms of a surplus. Also, mentioning elasticity was necessary in this as it links to sustainable economic growth. Demand Pull inflation also arose in the question as economic growth induces inflation which, within a volatile economy, may have a detrimental effect on long term economic performance.

    Just my opinion! cant get in everything
    Ahh that completely slipped my mind! Thanks for that! PED would have definitely scored my marks :l But I mentioned that supply-side policy would be useful to address the demand pull inflation, you reckon that would be alright though?
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    (Original post by Vivixn)
    I had used quantitative easing and interest rate for this 4 marker, I didn't want to risk using interest rates twice, but if the mark scheme is kind enough you'll possibly get the 4 marks
    I was initially worried but after reading on tutor2u I think I should be eligible for the full 4 marks. Its definition for Monetary Policy...Monetary policy involves changes in the base (policy) rate of interest to influence the growth of AD, the money supply, output, jobs and inflation. It goes onto say how interest rates can have an effect on demand and supply currencies. Quantitative easing is also mentioned, but changing interest rates is certainly the main monetary policies.
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    (Original post by Liverpool061897)
    Oh yeah I remember the question now few! I only commented on the data though by saying how it was in reliable because no known source, only took into account one year and small sample of eight country's out of 180
    I did that too but it was from a well known source because it was from Goldman Saachs
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    For the 18 mark question I thought it was quite ambiguous in the way that they wanted you to answer the question. I interpreted it as what methods can be used to move the deficit to a surplus and how these methods will also prove beneficial to the economy. I spoke about lowering interest rates which then lowers the exchange rate thus increasing net exports. Beneficial to the economy because output increases therefore there is economic growth. Drew a demand pull inflation diagram and explained this as my evaluation point. Also said that if AS increases in line with AD then demand pull inflation won't occur.

    That was my first point and then I went on to talk about corporation tax increasing productive potential of firms. Finally, if you looked at the very final line of the case study the exact words were that Turkey can use supply side policies such as education and training to move the current account from a deficit to a surplus. This is why I thought I was answering the question correctly and my final point was talking about how education and training provides a better skilled workforce etc etc.

    Anyone got any thoughts on how I answered this because I've been going through the comments and I'm not sure if I've answered the question correctly now...
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    (Original post by Vivixn)
    Ahh that completely slipped my mind! Thanks for that! PED would have definitely scored my marks :l But I mentioned that supply-side policy would be useful to address the demand pull inflation, you reckon that would be alright though?
    I personally didn't feel bringing in alternatives was appropriate as the question only asked us to discussion economic growth rather than performance which would then have made supplyside relevant. Might be wrong though!
 
 
 
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