OCR F581 Markets in Action - 11 May 2015

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Only saw this thread today. Thank you for making it, its been a massive help!

I was wondering if someone could mark the 18 marker I just completed from a past paper? I mark all the other questions myself but find it hard to accurately mark the 18 marker, I'm always a little biased and probably give myself a few too many marks :P

Taken from the January 2011 paper if you need the mark scheme, be honest on your marking please! I want to see what mistakes I make in order to improve :smile:

thanks in advance!

Anyone??

Reply 801

justfly

Original post by hyjacked

If anyone needs help please ask as it would benefit me as well as you!

How would you go about answering an 18 marker on information provision (just the L1-L3 Points)?

Reply 802

2013bensong

Teacher says essay question is likely to be one on positive externalities and subsidies.

Reply 803

anndz3007

Original post by JYNE

I'm confused about the diagram we draw showing tradable permits being a way to correct the market failure? Do we draw the supply shifting to the left as an indication of the government tightening their supply of permits and so reducing the quantity supplied and the amount of pollution firms are emitting? Or the one where demand increases (because more firms will demand permits) Or both?

no supply is perfectly inelastic (straight line)

Reply 804

260498

Does anyone think the 18 marker will be on government vs. private sector again?

Reply 805

JYNE

Original post by anndz3007

no supply is perfectly inelastic (straight line)

I know supply is vertical, just didn't know which one to draw showing a correction of market failure

Reply 806

anndz3007

Original post by 260498

Does anyone think the 18 marker will be on government vs. private sector again?

it's my biggest fear :frown:

it only came up once so must revise it

(edited 8 years ago)

Reply 807

hyjacked

Original post by justfly

How would you go about answering an 18 marker on information provision (just the L1-L3 Points)?

Well, it depends on the questions, forgive me if I am wrong, I don't think there'd be a question totally on info failure.
Hang on, let me look at my notes, this is probably my worst topic >.<

Reply 808

JYNE

Original post by hyjacked

I have never drawn a graph for demand and supply of permits just their affect. And then say that they act as an incentive to not pollute, for example, as they can make a profit from selling them to other firms. However, it is hard for the government to know how many to dish out.

So would I have to draw two separate diagrams explaining both?

Reply 809

260498

If it does it could only be on a good with non-rivalry like education or the post office right?

Posted from TSR Mobile

Reply 810

anndz3007

Original post by JYNE

I know supply is vertical, just didn't know which one to draw showing a correction of market failure

i think MSC will shift closer to MPC (outward)

Reply 811

anndz3007

Original post by 260498

If it does it could only be on a good with non-rivalry like education or the post office right?

Posted from TSR Mobile

how about council house? they talk a lot about rent price on the news, if post office come up, what will i talk about

Reply 812

Egg1

Original post by *Stefan*

I agree, but it's been some time since it came up.

It's one of the main topics in the end, so they can definitely put it this year.

Has it ever been an essay topic before? If so can you link the markscheme/ tell me the year?

Reply 813

hyjacked

Original post by justfly

How would you go about answering an 18 marker on information provision (just the L1-L3 Points)?

If it's about the solutions of information failure, you'd talk about regulation e.g having to have warnings on cigarette packages. This would reduce the demand for the demerit good, reducing overconsumption as the consumers are now aware of the disadvantages.

Reply 814

hyjacked

Original post by anndz3007

it's my biggest fear :frown:

it only came up once so must revise it

What year did it come up?

Reply 815

anndz3007

Original post by hyjacked

What year did it come up?

Jan 2010 i believe

Reply 816

JYNE

For tradable permits could someone explain what exactly is MSC and MPC? I wasn't in when this was explained in class and it's not on the diagram in the textbook, is it crucial to know? Thanks

Reply 817

hyjacked

Original post by JYNE

So would I have to draw two separate diagrams explaining both?

Sorry, I got confused. You don't actually need a graph for tradable permits as you would have a better method of correcting market failure with a diagram.

Reply 818

Pato1

Original post by Deepak96

Anyone have the MS for the may 2014 paper? Thanks in advance

F581_MS_Jun14.pdf396.4KB

Reply 819

hyjacked

Original post by JYNE

For tradable permits could someone explain what exactly is MSC and MPC? I wasn't in when this was explained in class and it's not on the diagram in the textbook, is it crucial to know? Thanks

MSC means marginal social cost which is private costs + externalities (total cost to society)

MPC is the private costs (cost to the user)

They are more used in diagrams showing negative and positive externalities along with MPB (private benefits) and MSB (social benefits)