OCR F581 Markets in Action - 11 May 2015 Watch

atimsa
Badges: 2
Rep:
?
#521
Report 3 years ago
#521
(Original post by lam12)
How is allocative efficiency achieved through tradable permits then?


Posted from TSR Mobile
hey watch this video it kind of explains all of tradeable permits a more simple way
https://www.youtube.com/watch?v=F4w6xhtFJ_0
0
reply
atimsa
Badges: 2
Rep:
?
#522
Report 3 years ago
#522
(Original post by *Stefan*)
In some respcts, tradable permits combine a market-based solution to market failure with regulation. So they are a "method" of regulation in a way, but CANNOT be defined as such.

A good way to remember the difference is that regulation, on one hand, is inflexible; once set, the firms would have to abide to the new rules in the exact same way. For example, if the government passed a new law demanding firms to reduce pollution by at least 50%, this would affect all firms equally.

On the other hand, tradable permits allow firms some flexibility, in that unused or partially-used permits can be sold to other firms. This means that firms that can easily reduce their pollution below to what their permits allow, have an incentive to sell those permits (in order to gain profit) to other firms struggling to reduce their pollution.

I urge you to read the explanation on the book (pages 71-72), as it explains tradable permits very well.
thank you , you explained it very clearly. There once was an 18 marker which was 'discuss whether regulation is the most effective way of correcting market failure arising from increasing carbon emission' for this question would I have to have had used tradeable permits as a separate point from regulation or ?
0
reply
keynes24
Badges: 10
Rep:
?
#523
Report 3 years ago
#523
(Original post by atimsa)
thank you , you explained it very clearly. There once was an 18 marker which was 'discuss whether regulation is the most effective way of correcting market failure arising from increasing carbon emission' for this question would I have to have had used tradeable permits as a separate point from regulation or ?
Tradable pollution permits and regulations are different policies, unless you are referring to an alternative as an evaluation. You should check the mark scheme for the question you are referring to.
0
reply
_Fergo
Badges: 19
Rep:
?
#524
Report 3 years ago
#524
(Original post by lam12)
How is allocative efficiency achieved through tradable permits then?


Posted from TSR Mobile
Allocative efficiency basically occurs when the market is in equilibrium.

Overproduction of a good (ie above what consumers demand) means that the market is allocatively inefficient, and this is usually the case with polluters.

Therefore, by limiting pollution to what the government sees as acceptable (such decisions usually include consumer demand), overproduction is eliminated and the market moves to a more allocatively efficient level (ie not the resources being allocated to a product are not excessive in relation to demand).

This is in theory at least -like many others things, it's based on value judgements and can have all the errors that this can bring (ie it's extremely difficult to calculate by how much a product is overproduced).
0
reply
_Fergo
Badges: 19
Rep:
?
#525
Report 3 years ago
#525
(Original post by atimsa)
thank you , you explained it very clearly. There once was an 18 marker which was 'discuss whether regulation is the most effective way of correcting market failure arising from increasing carbon emission' for this question would I have to have had used tradeable permits as a separate point from regulation or ?
No. You could have used tradable permits as an ALTERNATIVE method if you wanted to, but the focus should remain on regulation.

By alternative I mean any other policy that could be used instead of the one you are asked for.

I'd advise against combining the two if you can't understand the differences, because that could easily mess things up. If you want to mention another potential policy, use something more distinct like taxation (always relate to the specific question being set though -taxation may be ineffective in some cases, for example).
0
reply
KitsonnostiK
Badges: 0
Rep:
?
#526
Report 3 years ago
#526
Hey,

June (May) 2013, essay question. On the mark scheme L3 Band 1 it says regulation imposes a vertical supply curve on the market.

Can someone explain this? It doesn't HAVE to be a vertical supply curve, does it? Thought it just had to shift left?

Thanks in advance!

Posted from TSR Mobile
0
reply
atimsa
Badges: 2
Rep:
?
#527
Report 3 years ago
#527
(Original post by *Stefan*)
No. You could have used tradable permits as an ALTERNATIVE method if you wanted to, but the focus should remain on regulation.

By alternative I mean any other policy that could be used instead of the one you are asked for.

I'd advise against combining the two if you can't understand the differences, because that could easily mess things up. If you want to mention another potential policy, use something more distinct like taxation (always relate to the specific question being set though -taxation may be ineffective in some cases, for example).
thank you
0
reply
atimsa
Badges: 2
Rep:
?
#528
Report 3 years ago
#528
(Original post by keynes24)
Tradable pollution permits and regulations are different policies, unless you are referring to an alternative as an evaluation. You should check the mark scheme for the question you are referring to.
do you know any place where I would be able to find a 18 marker answer for it ?
0
reply
TheAgyeiman
Badges: 0
Rep:
?
#529
Report 3 years ago
#529
(Original post by atimsa)
do you know any place where I would be able to find a 18 marker answer for it ?
January 2011

Posted from TSR Mobile
0
reply
Hammy_23
Badges: 3
Rep:
?
#530
Report 3 years ago
#530
Can anyone give this a read please??
Attached files
0
reply
Yousf
Badges: 10
Rep:
?
#531
Report 3 years ago
#531
In evaluation, when mentioning alternative policies, do we have to give advantages and disadvantges of the alternative policy introduced, to the policy mentioned in the question?, or do we simply talk about the advantages and disadvantages of the alternative policy, and how it may be more effective?
0
reply
Nchomuzinda
Badges: 2
Rep:
?
#532
Report 3 years ago
#532
(Original post by Yousf)
In evaluation, when mentioning alternative policies, do we have to give advantages and disadvantges of the alternative policy introduced, to the policy mentioned in the question?, or do we simply talk about the advantages and disadvantages of the alternative policy, and how it may be more effective?
You talk about the alternative policy then say how it's more/less effective as the policy in the question (L4)


Posted from TSR Mobile
0
reply
JYNE
Badges: 6
Rep:
?
#533
Report 3 years ago
#533
What would be an alternative to tradeable permits?
0
reply
nadsss
Badges: 1
Rep:
?
#534
Report 3 years ago
#534
(Original post by Coombsy)
If anyone needs any help give me a shout. I got 98/100 in this exam (January 2013) and I have uploaded my answers to my profile if that's of any use.
What advice would you give on revising for the 18 mark questions?
0
reply
Super199
Badges: 18
Rep:
?
#535
Report 3 years ago
#535
Can someone explain tradeable permits to me please
0
reply
atimsa
Badges: 2
Rep:
?
#536
Report 3 years ago
#536
(Original post by Super199)
Can someone explain tradeable permits to me please
watch this video its quite helpful https://www.youtube.com/watch?v=F4w6xhtFJ_0
0
reply
Makashima
Badges: 15
Rep:
?
#537
Report Thread starter 3 years ago
#537
(Original post by Hammy_23)
Can anyone give this a read please??
Nice essay,

For application you said education is an example merit good which is correct and it has positive externalities yet you did not mention the social benefit thus your application is half done. Social benefit could be a gain in qualifications and skills hence improving the labour productivity ie more output/higher quality of output per worker . Which is beneficial to the economy so basically education produces a highly efficient labour

You couldve mentioned about size since that is the most popular and easy point to do...But your other points are enough anyway thus do not worry.

Yes you mentioned another point ie provisional of information through advertising but the question asked about subsidy thus the comment has no relevance, BUT if you compared to subsidy then it is a different story. So compare to subsidy how it is more or less effective or maybe effective combination together

How many marks did you teacher give you? Btw are you in sixthform or college?
0
reply
Hammy_23
Badges: 3
Rep:
?
#538
Report 3 years ago
#538
Thanks for the read much appreciated and 14
sixth form

(Original post by Makashima)
Nice essay,

For application you said education is an example merit good which is correct and it has positive externalities yet you did not mention the social benefit thus your application is half done. Social benefit could be a gain in qualifications and skills hence improving the labour productivity ie more output/higher quality of output per worker . Which is beneficial to the economy so basically education produces a highly efficient labour

You couldve mentioned about size since that is the most popular and easy point to do...But your other points are enough anyway thus do not worry.

Yes you mentioned another point ie provisional of information through advertising but the question asked about subsidy thus the comment has no relevance, BUT if you compared to subsidy then it is a different story. So compare to subsidy how it is more or less effective or maybe effective combination together

How many marks did you teacher give you? Btw are you in sixthform or college?
0
reply
keynes24
Badges: 10
Rep:
?
#539
Report 3 years ago
#539
(Original post by Hammy_23)
Can anyone give this a read please??
10/18 , there is no reference (at least I couldn't see it) of L3 band 2. The evaluations are good but if introducing an alternative policy you should mention why it is better than subsidies.
0
reply
Hammy_23
Badges: 3
Rep:
?
#540
Report 3 years ago
#540
Thanks for that

Posted from TSR Mobile
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Cranfield University
    Cranfield Forensic MSc Programme Open Day Postgraduate
    Thu, 25 Apr '19
  • University of the Arts London
    Open day: MA Footwear and MA Fashion Artefact Postgraduate
    Thu, 25 Apr '19
  • Cardiff Metropolitan University
    Undergraduate Open Day - Llandaff Campus Undergraduate
    Sat, 27 Apr '19

Have you registered to vote?

Yes! (260)
38.86%
No - but I will (46)
6.88%
No - I don't want to (49)
7.32%
No - I can't vote (<18, not in UK, etc) (314)
46.94%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise