OCR F581 Markets in Action - 11 May 2015 Watch

Super199
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#1001
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#1001
(Original post by jegro)
nope
So basically you are a shook yute.
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keynes24
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#1002
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#1002
(Original post by BigFreakyGinger)
It is reasonably obscure, I mean it doesn't even have a graph. Because how would you show 'free at the point of use' on a graph with a price axis.
Didn't follow the previous comments but if you want to show free at the point of use you can in a demand//supply diagram by choosing the price at zero and showing excess demand which is a disadvantage on the NHS (waiting times)
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jegro
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#1003
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#1003
(Original post by Super199)
So basically you are a shook yute.
you what?
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midgemeister7
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#1004
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#1004
(Original post by BigFreakyGinger)
I don't understand. If the merit good was health care or education then the equilibrium would have to be on the quantity traded axis as there would be no price?? surely? Though there would be a finite limit to supply.
Price always hypothetical. They wanted a general P.E. graph to show that health care was a merit good - i.e. in a free market it would be underconsumed
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BigFreakyGinger
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#1005
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#1005
I understand now, with state provision the supply curve is infinitely inelastic, however as it is free there is always an excess of demand over supply as consumers expect to supplied at the point where demand crosses the quantity axis however the supply as it is infinitely inelastic has to keep increasing to meet where the demand crosses the axis. http://www.economicsonline.co.uk/Mar...hcare-free.png
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keynes24
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#1006
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#1006
(Original post by aoxa)
It really can't. Provision of information is always used in conjunction with some other policy - it doesn't work effectively on it's own. Therefore, they cannot give an 18 marker based solely of provision of information.
I can't speculate on what could come up or not but any policy that is indicated in the syllabus could be an 18 mark question. Whether you compare it with something else is a different thing. You can argue that any policy cannot work well on its own, I would suggest learning evaluations and analysis for all the policies indicated in the syllabus.
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midgemeister7
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#1007
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#1007
(Original post by keynes24)
I can't speculate on what could come up or not but any policy that is indicated in the syllabus could be an 18 mark question. Whether you compare it with something else is a different thing. You can argue that any policy cannot work well on its own, I would suggest learning evaluations and analysis for all the policies indicated in the syllabus.
No, senior examiners have said it can't come up by itself. That's fact, not speculation.
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BigFreakyGinger
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#1008
What graph would you use to show a complete ban on a demerit good? (excluding informal economies)
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midgemeister7
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#1009
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#1009
(Original post by BigFreakyGinger)
What graph would you use to show a complete ban on a demerit good? (excluding informal economies)
You'd never have to show that, you would only need to show demerit goods being limited
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BigFreakyGinger
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#1010
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#1010
(Original post by midgemeister7)
You'd never have to show that, you would only need to show demerit goods being limited
I see, thankyou. Good. I suppose there would be no market anyway haha!
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Pato1
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#1011
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#1011
(Original post by midgemeister7)
No, senior examiners have said it can't come up by itself. That's fact, not speculation.
Where
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aoxa
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#1012
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#1012
(Original post by BigFreakyGinger)
What graph would you use to show a complete ban on a demerit good? (excluding informal economies)
There is no diagram - technically there's no market, so no diagram.
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keynes24
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#1013
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#1013
(Original post by midgemeister7)
No, senior examiners have said it can't come up by itself. That's fact, not speculation.
I said I can't speculate. A senior examiner publish that information available for everyone? Can I have the sources? If that's the case , which I am unaware of it, I think is not something anyone associated with OCR should have disclosed.
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Super199
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#1014
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#1014
Right so was going through the spec and going to pick out a few things I am not too sure with. If anyone could help me out with these it would be appreciated

-explain why the existence of public goodsleads to market failure.
Is that something to do with public goods won't be produced if it was left to the free market? How does that lead to market failure??

-explain what is meant by information failureand analyse its implications.
Information failure is where there is a lack of information resulting in consumers and producers making decisions that does not maximise welfare. Is the implication to do with merit and de-merit goods?

Definitions of market failure
Is it: Where the free marker mechanism fails to achieve economic efficiency?
Or is it specifically allocative efficient?

-discuss the business relevance of differentelasticity estimates
PED is used for revenue
YED - Used to tell which goods are inferior or not - may be helpful depending on the state of the current economy (i think)
XED = Whether they are substitutes/ complements - not sure how that is helpful.
PES - Not really sure something about how quickly the producers can react to changes in price?

-understand what is meant by a ‘competitivemarket’ and explain the role of a market inallocating scarce resources.
What is the definition of a competitive marker?
What is the definition of a normal market - Is this a sufficient enough definition off the top of my head : A place where buyers and selling come into contact to exchange goods and services. It is a system whereby price is determined. Do I have to mention the world 'trade' or can I use exchange - teacher was a bit picky....

Any help is appreciated.

Thanks
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midgemeister7
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#1015
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#1015
(Original post by keynes24)
I said I can't speculate. A senior examiner publish that information available for everyone? Can I have the sources? If that's the case , which I am unaware of it, I think is not something anyone associated with OCR should have disclosed.
1. It's not written down but has been said
2. In around 15 papers it's never surfaced. As everything on the syllabus needs to be covered at some point every few years, it clearly isn't supposed to be an 18 marker by itself
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keynes24
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#1016
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#1016
(Original post by midgemeister7)
1. It's not written down but has been said
2. In around 15 papers it's never surfaced. As everything on the syllabus needs to be covered at some point every few years, it clearly isn't supposed to be an 18 marker by itself
If it has not been tested before it doesn't mean it cannot be an 18 marker. There are policies indicated in the syllabus that could be tested. If it is not written down I wouldn't trust it, senior examiners have got in trouble a few years ago for saying what could or could not come up in exams
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Hammy_23
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#1017
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#1017
Anyone willing to give feedback??

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midgemeister7
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#1018
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#1018
(Original post by Super199)
Right so was going through the spec and going to pick out a few things I am not too sure with. If anyone could help me out with these it would be appreciated

-explain why the existence of public goodsleads to market failure.
Is that something to do with public goods won't be produced if it was left to the free market? How does that lead to market failure??Yes it is. Also free riders etc. If it's not provided, there is allocative inefficiency as consumer satisfaction is not maximised. This is market failure since there is not economic efficiency.

-explain what is meant by information failureand analyse its implications.
Information failure is where there is a lack of information resulting in consumers and producers making decisions that does not maximise welfare. Is the implication to do with merit and de-merit goods? Yes, it leads to over/underconsumption due to lack of accurate information

Definitions of market failure
Is it: Where the free marker mechanism fails to achieve economic efficiency?
Or is it specifically allocative efficient? Nope, you are right with the initial definition

-discuss the business relevance of differentelasticity estimates
PED is used for revenue
YED - Used to tell which goods are inferior or not - may be helpful depending on the state of the current economy (i think)
XED = Whether they are substitutes/ complements - not sure how that is helpful.
PES - Not really sure something about how quickly the producers can react to changes in prices PES - Firms try to make PES as elastic as possible. Tends to be inelastic in the short term

-understand what is meant by a ‘competitivemarket’ and explain the role of a market inallocating scarce resources.
What is the definition of a competitive marker? Don't think a definition is needed here
What is the definition of a normal market - Is this a sufficient enough definition off the top of my head : A place where buyers and selling come into contact to exchange goods and services. It is a system whereby price is determined. Do I have to mention the world 'trade' or can I use exchange - teacher was a bit picky... Spot on

Any help is appreciated.

Thanks
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midgemeister7
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#1019
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#1019
(Original post by Hammy_23)
Anyone willing to give feedback??

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You need the regulation graph I believe which shows a left shift in supply
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Yousf
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#1020
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#1020
(Original post by jegro)
18 mark question is one of these, i wont say which

information provision to solve information failure
regulation to solve market failure on the demerit good given
if subsiding the product in the case study will solve market failure
What definitions
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