Edexcel Economics Unit 4 Global Economy Discussion Thread (10.June.2014)

How comes most did the second DRQ. First one was so much easier, only one difficult 10 marker.

You get extra marks if you do.

I wrote about uk's inital cost of olympics an building the stadium may not being present anymore and evaluated saying that it may be a PFI scheme so they may still be leasing it, correct? And i also said increase in tax revenue from VAT as there was an increase in tourists buying Uk goods

Sorry yeah, current account imbalances, I said deficit cause all the countries had deficits except for Germany

Yeah, well i took it in the exam to mean it was just the effects of a general increase in tax rates, so i didnt mention any country, and implicitly implied i was talking about the UK, just really hope that they dont cap the mark at 24/30 for not referencing a specific country or France. I dont think they will expect any specific examples from France so i wouldnt worry about it

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1)savings and harrod domar and investment

2) I wrote about foreign exchange gap resultin in low saving and falling foreign currency may lead government finance to fall so constraint to growth.

3 ) rich may save abroad so more outflow leading to capital flight. Whereby country will suffer a further fall in trade and money supply within the economy so no more investment. Low multiplier too.
4) finally low saving would mean increased debt burden leading the country to be dependent on another country.

Evaluation

Improving tourism in countries with safaris such as kenya can reduce output gap.

Saving might sometimes lead the economy to suffer more according to paradox of thrift.

Thirdly I prioratized that product dependency is a major constraint on growth


Wat do u think about this answer


Is it correct? Anyways I expanded it further.

I also answered question 1 and i also put

raising taxes
cutting public expenditure

i think your third one is right, but did you evaluate it to say that the criteria have been loosened since the recession?

as my third point i put that due to economic growth which has slightly occurred and the budget deficit has improved due to higher consumption, lower unemployment, and therefore higher tax revenues.

i also split raising taxes into both direct and indirect

Hard paper I believe, but I still think I managed it quite well.

Did Q3 and Q5.

3a was a bit unexpected and not that easy to structure into 3 KAA and 2 EV so dont know how I did on that. I looked at demand side econ growth and supply side and looked at HDI components, saying that growth did a lot to increase GDP per capita but demand side growth does not contribute signficantly to other factors(health, education) then i said as evaluation that growth can also cause inequality, hence not improving development, suggesting that development is not always a direct cause of growth but my end argument was that growth does quite a lot to push development, hence I agreed with the question.

3b was very nice, used 4 factors and then evaluated well I think.

Question 5 was really hard I found. Why were so unspecific on the 8marker. "Comment on" ? Come on, at least say causes or what we have to comment on exactly. I basically said that GDP did grow differently due to competitiveness reason, put in data and some evaluation, but that was weird.

Than c with unit costs I put minimum wage and immigration policy. Like less strict immigration policy so no cheap labour immigrating, so higher labour costs, dont know fi this is valid though.

for d I looked at Greece with defecit and then Germany as an example with surplus and commented on benefits of balancing, for Greece to push econ growth as export growth is strengthened and for Germany that to prevent inflation as too much export demand increases price level

for e I was clueless for 5 minutes or something, then i put minimum wage, extra bonuses from government for hard work, and quickly mentioned hiring and firing from the extract. But this is not going to be that good I think

My problem was that for the questions I always put own factors and didnt even read the extract until the end Only used application marks through figures...

I hope this is still an A* though, I think u could lose up to 20-25 marks to still get 108UMS as it was quite a difficult paper. So fingers crossed.

I pretty much did the same thing as you! For the unit labour costs i wrote about minimum wage and inflation and how it leads to the wage-price spiral and linked it to how inflation erodes people's wages therefore workers will demand higher wages, thus increasing unit labour costs, does that make sense?

I wrote about immigration policy in the 15 mark labour market question, which doesnt sound right because i dont think immigration policy is a labour market policy :/

i think i did the third essay wrong :''''''(
it was assess the view that the savings gap is the biggest constraint on growth.
my structure was to say how savings gap is the biggest constraint then counter it by saying no another factor is bigger e.g primary product dependency...

just realised the point was meant to be how another factor is bigger, then evaluate that

I'm sorry but 3a was asking how dependant economic development is on economic growth so wouldn't you talk about how economic development can take place without economic growth through strategies such as micro financing tourism attracting TNC'S and then evaluate by saying they lead to economic growth and use standard evaluations like why they may not fully be successful in promoting economic development?