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    (Original post by Bigpaddy27)
    I agree, I really want an essay with an easy market failure and hopefully the data extracts are juicy with lots of good points to be able to use.
    Exactly, at least have one good context. But pray no buffer stocks come up.
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    (Original post by physicsamor)
    Exactly, at least have one good context. But pray no buffer stocks come up.
    If you are taking the new spec paper- buffer stocks won't come up at all as they have been removed from the new spec.
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    (Original post by theD0N)
    So where would the tax revenue be?

    https://www.google.co.uk/search?q=ta...cUYeb6vZROM%3A

    The shaded box you can see in this diagram is the tax revenue.
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    (Original post by Bigpaddy27)
    If you are taking the new spec paper- buffer stocks won't come up at all as they have been removed from the new spec.
    Oh thank god.
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    (Original post by Bigpaddy27)
    If you are taking the new spec paper- buffer stocks won't come up at all as they have been removed from the new spec.
    OMg my teacher taught me it for no reason XD
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    (Original post by Luiswright31)
    What is it about them that you struggle to remember? Happy to help...
    I always mix up the labeling of the demand/supply curves however I think I've got it now.

    Negative externality: Social Costs > Private Costs

    Positive externality: Social Benefits > Private Benefits
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    (Original post by Nik12)
    It depends if you are talking in terms of what it looks like on the graph. For example if the Demand curve is steep it will be fairly Inelastic. And if the demand curve is quite shallow it will be fairly elastic. An easy way to remember it is that a steep curve looks like an I (which is the first letter of Inelastic). And then you'll know the other one is elastic.

    But if you are talking in terms of numbers after calculations then if the number is <1 it will be inelastic. If it's >1 then its elastic. And a (+) will mean its a normal good, therefore a (-) is a inferior good. Hope that helps, i'm just revising elasticity now xD
    The normal/inferior goods are only for income elasticity (YED), for PED the vast majority of goods have a negative value because as price falls, demand increases, but theres a few with positive values for which a price increase causes a demand increase. The two on the spec are veblen goods (snob value), and giffen goods.
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    [QUOTE=Karan8298;64814979]I always mix up the labeling of the demand/supply curves however I think I've got it now.

    Negative externality: Social Costs > Private Costs

    Positive externality: Social Benefits > Private Benefits[/QUOTE

    If we are talking consumption, then we consider the benefits curve, (demand) we can have positive and negative externalities of consumption.

    If we are talking production, then we consider the costs curve, (supply) we can also have both positive and negative externalities in production.

    MSB/MSC, is where we want to be, where social welfare is optimised.
    MPB/MPC, is where the free market mechanism operates, where supply meets demand.

    A positive externality in consumption would mean MSB exceeds MPB, and we operate at MPB=MPC, therefore we under consume the good and don't receive the positive externalities that we would if we operated at MSB. The government may give incentives to the consumer to consume these goods, perhaps a subsidy on consumption, which would shift supply out to the MSB curve, where welfare is optimised and positive externalities are gained.

    A negative externality in consumption would mean MPB exceeds MSB, and we operate at MPB=MPC therefore we over consume that good and create negative externalities whilst doing so. The government would try to reduce demand for these goods perhaps by introducing a tax on consumers which could shift demand inwards to the MSB curve, where negative externalities are limited.

    A positive externality in production would mean that MSC exceeds MPC, and we operate at MPB=MPC therefore we under produce that good and do not receive the positive externalities that we would if we operated at MSC. To help gain these positive externalities the government could subsidise production of these goods to help shift supply outwards to the MSC curve, where social welfare in optimised.

    A negative externality in production would mean that MPC exceeds MSC, and we operate at MPB=MPC therefore we over produce the good and cause negative externalities whilst doing so. To get rid of these negative externalities, the government could tax the producers, to try and shift supply inwards to the MSC curve, where negative externalities are taken into account and social welfare is optimised.

    Hope this helps, if you're still confused and have any questions please ask.
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    you should watch PajHolden on YouTube, he is really helpful with the externality diagrams and explains them very well.
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    So bloody nervous. I just hope I can answer the questions without freezing up lol
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    i'm feeling pretty confident, so as long as we get a nice essay question it should be ok, im praying for a nice govt intervention question on taxes or subsidies or something like that. but i think they should be quite kind to us seeing as it is the first year of the new spec. either that or the boundaries should be pretty low (fingers crossed)
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    There is a YouTube channel called EconDalPlus or something like that and he talks about exam techniques for econ you should all watch it its awesome
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    On the specimen paper for AQA AS Econ it says: "do NOT use pencil". Does this mean we have to use pen for the diagram question because I don't want to use pencil and end up losing 4 marks but with pen I will make a mistake and not be able to rub it out!
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    (Original post by James7373)
    On the specimen paper for AQA AS Econ it says: "do NOT use pencil". Does this mean we have to use pen for the diagram question because I don't want to use pencil and end up losing 4 marks but with pen I will make a mistake and not be able to rub it out!
    I was meaning to ask my teacher the same thing! I have no idea, sorry! X

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    (Original post by zwatkins66)
    I was meaning to ask my teacher the same thing! I have no idea, sorry! X

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    well my teacher said that you should use pen, but my assumption is that the specimen paper has been oversighted because in the AQA physics specimen paper a lot has been oversighted, there typos and incorrect answers in the mark scheme lol.
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    I have a feeling this is going to be really hard guys... AQA know we are retakes therefore I think they will give us hard questions


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    I feel like this is going to be a hard paper as they know we are all retakes but anyway my teacher predicted this:

    Evaluate state provision to correct market failure in education (25 Marks)


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    (Original post by cutelady)
    I have a feeling this is going to be really hard guys... AQA know we are retakes therefore I think they will give us hard questions


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    all retakes?
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    (Original post by James7373)
    all retakes?
    Yeah we are all retakes? The year 12's won't be doing our exam. Only year 13's will be doing the exam this year


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    (Original post by cutelady)
    Yeah we are all retakes? The year 12's won't be doing our exam. Only year 13's will be doing the exam this year


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    Dno how your school works, but I'm year 12 and taking it tomorrow lol
 
 
 
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