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    http://gyazo.com/822d3d16cae2fe5910cce74059a8ca5d

    can someone explain that please
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    Guys what do you think will come up, also whats your structure for 25 markers. Here's mine:

    - Intro- 2 definitions and explanation of context
    - Pt1 - elaborate and evaluate
    - Pt2 - same
    - Pt3 (optional) - same
    - Main evaluation - alternatives, wider context etc.
    - Conclusion .

    Good luck

    This year i think buffer stocks may come up and something to do with externalities.
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    (Original post by Schmitzel)
    So long as I get my merit/demerit/positive/negative externality question.
    As long as it's about government intervention then you can talk about it and they always come up, so should be fine!
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    My structure:
    Intro - definitions, setting out main points
    Diagrams (referred to in text)
    4/5 paragraphs, each of form: statement, back up with data, analyse, evaluate
    Conclusion

    Posted from TSR Mobile
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    The best structure (for a policy question) is this:

    Definitions, and then explaining that there's a negative/positive extern. Draw the relevant market failure diagram and say that two possible policies could correct it.

    Analysis 1: a nice paragraph explaining the first policy. Then draw/explain the diagram.

    Evaluation 1: evaluate the policy.

    Repeat these two things for the second policy.

    Conclusion: reach a judgement and throw in a third policy that might be better than the two you've talked about briefly (but not too necessary). Throw in some "in the long-runs", "it depends ons" and "howevers".

    35 mins would enable you to do this but 30 should be alright.
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    My structure Be:

    Introduction - some definitions, market failure of the specific case study and use figures from Extract A if applicable.

    Paragraphs:
    State an issue possibly given by the extract.
    Quote extract
    Explain effect on whatever question is and analyse it
    Diagram if relevant
    Evaluate briefly

    Then I end with conclusion and answer the question given
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    (Original post by BBeyond)
    http://gyazo.com/822d3d16cae2fe5910cce74059a8ca5d

    can someone explain that please
    Pretty sure the answer is D right? What I thought is that they both have different values for each index number. So for in Firm X 1 index may be 10 productivity, but in firm Y it may be 15 productivity as index numbers may be different for each. Therefore you don't know the actual value of their productivity, by process of elimination ABC are wrong. And if you work out the percentage change for each Firm, X is higher at a -46% compared to Firm Y at -33%. Therefore you can conclude that it fell at a faster rate in firm X.
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    Say you've got plastic bags from a supermarket which are free, and then the government imposes a tax on these plastic bags which causes the price of the bags to rise, lets say 5p per bag.

    How do you explain why this tax causes a shift to the left of the supply curve?

    I realise that consumption of plastic bags will fall, and it will incentive individuals to reuse their plastic bags, but this explaining the demand side effects.

    How do you explain the supply side effects?

    I think the answer may be something like this, 'a tax will increase costs of production, will which then shift the supply curve to the left, feed through to higher prices assuming the PeD does not = infinity'.

    Which one do you say? Im not so sure a tax on plastic bags will increase costs of production, but i thought it was just a tax that affected the price not costs? So what do you say? Why does supply shift to the left following the imposition of an indrect tax on plastic bags?
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    (Original post by ozzie2)
    Pretty sure the answer is D right? What I thought is that they both have different values for each index number. So for in Firm X 1 index may be 10 productivity, but in firm Y it may be 15 productivity as index numbers may be different for each. Therefore you don't know the actual value of their productivity, by process of elimination ABC are wrong. And if you work out the percentage change for each Firm, X is higher at a -46% compared to Firm Y at -33%. Therefore you can conclude that it fell at a faster rate in firm X.
    yeah that makes sense cheers



    my layout:

    intro: definition or 2, explain market failure + do diagram and explain my approach to the question possibly trying to quote something from an extract
    p1/2/3 possibly 4: quote extract analyse policy, diagram if possible, evaluate
    conclusion: usually summarise argument then state it depends on...
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    My biggest gripe is that I never know if I'm evaluating, what even is evaluating? :'(
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    (Original post by BBeyond)
    Wait isn't the answer B?
    An increase in sales signifies there is an increase in demand, leading to a rightward shift in demand. Note: The question specifically says an increase in sales not an increase in supply. It is quite a tricky question.
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    (Original post by deji_ta)
    An increase in sales signifies there is an increase in demand, leading to a rightward shift in demand. Note: The question specifically says an increase in sales not an increase in supply. It is quite a tricky question.
    Well according to the official AQA markscheme the answer is B lol
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    What could be the 5 and 12 markers be on this year in Econ 1?
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    (Original post by BBeyond)
    Wait isn't the answer B?
    Yes the answer is B.
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    QUESTION MULTIPLE CHOICE
    Which one of the following is associated with a missing market?

    A : A monopoly restricting output
    B : The production of a negative externality
    C : A firm deciding to produce a private good
    D : A government subsidising agricultural production

    What's the answer, and why?
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    Guys, what are your guesses for the topic of the contexts? Inequality and Housing were two things people were talking about around the time they wrote the papers, thats my guess.
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    (Original post by PAPADAPADOPOLOUS)
    QUESTION MULTIPLE CHOICE
    Which one of the following is associated with a missing market?

    A : A monopoly restricting output
    B : The production of a negative externality
    C : A firm deciding to produce a private good
    D : A government subsidising agricultural production

    What's the answer, and why?
    I would say B, because a missing market is a situation where competitive markets allows the exchange of a commodity that have negative externalities.
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    (Original post by nitin985)
    My biggest gripe is that I never know if I'm evaluating, what even is evaluating? :'(
    Start with an introduction - briefly outlining the motivation, definitions, significance, perhaps recent or historical events that relate to the question. Move on to the main body of your essay using the conventional theory you have learned so, a very simple example, the question asks you about the effect of expansionary monetary and fiscal policies, so basically show the effects using a graphical or algebraic analysis, thereafter you need to critique what you have just wrote. So, for example suppose you said that cutting interest rates would stimulate aggregate demand, and that increasing government spending would also stimulate demand, you need to now question the viability of these claims. Here is a brief list of possible evaluations:

    Monetary Policy

    Time Lags
    Rules VS Discretion
    Lucas Critique
    Zero-Lower Bound
    Rational Expectations
    The Importance of Communication
    New dimensions post-crisis i.e. QE, Macroprudential etc
    Endogenous money supply - reserve-requirements have little effect
    Monetary policy is ineffective under a fixed exchange rate regime (Trillema)(Sterilization)
    Money neutrality in the long-run

    Fiscal Policy

    Ricardian Equivalence
    Rational Expectations
    Slopes of supply and demand
    Shadow market - higher taxes (may) result in evasion/avoidance
    Politically difficult
    Flexible exchange rates make it less effective
    Effect depends on the nature or magnitude of private debt in the economy
    Laffer Curve
    Debt overhang? Austerity exacerbates the problem?

    Hope this helps. Good Luck.
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    (Original post by AFRO_JOSH)
    I would say B, because a missing market is a situation where competitive markets allowing the exchange of a commodity that have negative externalities.
    I thought a missing market, was one which was not provided at all. For that reason i thought it couldnt be B due to the fact the market still provides the good, but overprovides.

    Intitially i picked D because if a government didnt subsidise then the agricultural farmers may not make income, go bump, and then no longer supply to the market, hence 'missing market'.
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    (Original post by PPF)
    Start with an introduction - briefly outlining the motivation, definitions, significance, perhaps recent or historical events that relate to the question. Move on to the main body of your essay using the conventional theory you have learned so, a very simple example, the question asks you about the effect of expansionary monetary and fiscal policies, so basically show the effects using a graphical or algebraic analysis, thereafter you need to critique what you have just wrote. So, for example suppose you said that cutting interest rates would stimulate aggregate demand, and that increasing government spending would also stimulate demand, you need to now question the viability of these claims. Here is a brief list of possible evaluations:

    Monetary Policy

    Time Lags
    Rules VS Discretion
    Lucas Critique
    Zero-Lower Bound
    Rational Expectations
    The Importance of Communication
    New dimensions post-crisis i.e. QE, Macroprudential etc
    Endogenous money supply - reserve-requirements have little effect
    Monetary policy is ineffective under a fixed exchange rate regime (Trillema)(Sterilization)
    Money neutrality in the long-run

    Fiscal Policy

    Ricardian Equivalence
    Rational Expectations
    Slopes of supply and demand
    Shadow market - higher taxes (may) result in evasion/avoidance
    Politically difficult
    Flexible exchange rates make it less effective
    Effect depends on the nature or magnitude of private debt in the economy
    Laffer Curve
    Debt overhang? Austerity exacerbates the problem?

    Hope this helps. Good Luck.
    lmao this doesn't help AS students smartypants
 
 
 
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