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    i thought that the free market failing to account external benefits was market failure / A might have been wrong because of free rider problem or something along those lines?
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    Second data response (10)

    Question 1)
    Distinguish between renewable and non renewable sources of energy.

    Question 2)
    Explain two benefits of using renewable sources of energy.

    Question 3)
    Discuss the benefits of division of labour in the production of wind turbines.

    Question 4)
    Asses the economic effects of the use of a government subsidy in renewable soirces of energy.

    Question 5)
    With reference to external costs, examine the effects of the increase in the use of renewable sources of energy.

    The questions were something like that, can't remember the specifics!
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    If I answered question 9 but forgot to put a cross in the box, is there a penalty?
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    For question 9d were we meant to draw the diagram for a specific tax or and ad valorem tax?
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    (Original post by Jsoun)
    For question 9d were we meant to draw the diagram for a specific tax or and ad valorem tax?
    I did ad valorem which I think is wrong

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    (Original post by Princepieman)
    I did ad valorem which I think is wrong

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    But the extract didnt specifically mention either did it?
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    (Original post by Econmaster)
    If I answered question 9 but forgot to put a cross in the box, is there a penalty?
    No, I have done this plenty of times, including today
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    (Original post by Jsoun)
    But the extract didnt specifically mention either did it?
    Nope, it didn't

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    It just said 'indirect tax' - i draw ad valorem too, nor in the article did it state specific / unit tax.
    Dropped 1 mark on question 1 PPF
    Dropped 2 marks on question 2 producer surplus, misread it.
    Dropped 3-4 marks on MCQ
    Probably dropped 3-4 marks on data-response.
    70-72 marks...

    My strength is macro, need to score 80-85 raw marks in unit 4 tbh...
    I'll probably end up messing up unit 3 MCQs aswell cos I'm **** on those 4 markers.
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    (Original post by Windies)
    It just said 'indirect tax' - i draw ad valorem too, nor in the article did it state specific / unit tax.
    I drew 2 diagrams, one for specific and another for ad valorem. Is that alright?
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    (Original post by Econmaster)
    How many marks would I get for 9e)

    This is what I included:

    An accurate definition of tradable pollution permits
    1 KAA about using the price mechanism which makes polluters pay
    2 KAA Firms can have excess carbon permits in order to generate revenue
    3 KAA Firms have an incentive in investing into cleaner tehnology

    1 EV EU Commision could issue too many carbon permits leading to a decrease in supply (Diagram Supported)
    2 EV EU Commision could have too little carbon permits circulating meaning a increase in price of carbon permits
    Could anybody check how many marks this would get?
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    (Original post by Econmaster)
    Could anybody check how many marks this would get?
    Mark scheme from the 2013 paper
    10(d)* KAA = 8 marks
    Understanding / considering the benefits oftradable pollution permits include :
    • Definition or understanding of tradable pollutionpermits (a limit placed on firms carbon emissionsthrough issue of permits / permits can bepurchased and sold / fines if firms exceed limitwithout buying permits) (1+1 marks).
    • Data reference: e.g. Australian governmentintends to reduce carbon emissions by 5% by 2020/ Australia accounts for 1.5% of greenhouse gasemissions (1 mark) Benefits of tradable pollution permits to reducepollution (2+2+2+2 or 3+3+2 marks): NB: Do not award for discussion of benefits inreducing air pollution and impact of globalwarming. The focus has to be on the merits anddemerits of the system of tradable permits.
    • A market created for buying and selling carbonpermits / use of price mechanism to internaliseexternal costs / the best way to reduce carbonemissions.
    • This may be shown through a relevant externalitydiagram / where external costs are internalisedthrough trade in carbon permits / somedevelopment e.g. reduce welfare loss or identifyrevenue from sale of carbon permit (1+1+1marks).
    • Use of demand and supply diagram / depicting adecrease in supply of permits and its subsequentincrease in price of permits (1+1 marks)
    (14)
    • Australia is one of the world’s largest carbonpolluters per head of population / so the scheme isjustified to help reduce global emissions.
    • The Australian emissions trading scheme is similarto the EU and so could help create a global scheme/ especially as China and South Korea showinterest in setting up one.
    • Government can raise funds by selling somepollution permits / revenue can be used to reduceeffects of pollution / subsidise cleaner technology /compensate victims.
    • Firms have an incentive to invest in cleantechnology / then sell excess permits to other firms/ or bank surplus permits for future years.
    • The heavy polluting firms are disadvantaged byexperiencing higher production costs from buyingextra permits/ whereas the cleaner firms are at anadvantage with relatively lower production costsfrom selling surplus permits.
    • Data bias could exist as Anglo AmericanCorporation may be exaggerating theunemployment effects of an emissions tradingscheme. Evaluation = 6 marks
      Consideration of the limitations of tradablepollution permits for reducing pollution or theirdisadvantages (2+2+2 or 3+3 marks):
      • Extract 2 suggests huge increase in costs formining industry of A$25 billion by 2020 / manyjobs directly and indirectly at risk / development ofthis point e.g. related industries such as miningtools industry or manufacturing industry.
      • Extract 2 indicates that Australia only accounts for1.5 per cent of global carbon emissions / not muchpoint setting up the scheme compared to the costfor mining companies.
      • Extract 2 suggests a decrease in mininginvestment projects / development of this pointe.g. reduce Australia’s ability to meet futureenergy needs.

    • Little incentive for firms to reduce pollution since /94.5 per cent of permits issued for free and sogovernment failure / heavy polluters can purchasesurplus permits from other firms rather than investin expensive clean technology.
    • Disputes arise over allocation of permits / possiblebarriers to entry.
    • A cost to the government of monitoring andenforcing carbon pollution emissions rules.
    • The valuation of pollution permits may be too riskyto leave to the market.
    • Problem that most countries in the world are notpart of an emissions trading scheme especially US(apart from California).
    • Other schemes might be more effective in reducingcarbon emissions e.g. carbon offsetting orrenewable energy certificates.
    Level Mark Descriptor Level1 1-4 Definition of emissions trading schemeand description of how it works. Level2 5-8 Two or more advantages of theemissions trading scheme. Level3 9-10 Up to one evaluation point for onelimitation of scheme. Level4 10-12 Up to two evaluation points for twolimitations of scheme. Level5 12-14 Up to three evaluation points for threeor more limitations of scheme.
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    It's kinda surprising that so many people found question 9 easier than 10
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    (Original post by epic within)
    Mark scheme from the 2013 paper
    10(d)* KAA = 8 marks
    Understanding / considering the benefits oftradable pollution permits include :
    • Definition or understanding of tradable pollutionpermits (a limit placed on firms carbon emissionsthrough issue of permits / permits can bepurchased and sold / fines if firms exceed limitwithout buying permits) (1+1 marks).
    • Data reference: e.g. Australian governmentintends to reduce carbon emissions by 5% by 2020/ Australia accounts for 1.5% of greenhouse gasemissions (1 mark) Benefits of tradable pollution permits to reducepollution (2+2+2+2 or 3+3+2 marks): NB: Do not award for discussion of benefits inreducing air pollution and impact of globalwarming. The focus has to be on the merits anddemerits of the system of tradable permits.
    • A market created for buying and selling carbonpermits / use of price mechanism to internaliseexternal costs / the best way to reduce carbonemissions.
    • This may be shown through a relevant externalitydiagram / where external costs are internalisedthrough trade in carbon permits / somedevelopment e.g. reduce welfare loss or identifyrevenue from sale of carbon permit (1+1+1marks).
    • Use of demand and supply diagram / depicting adecrease in supply of permits and its subsequentincrease in price of permits (1+1 marks)
    (14)

    • Little incentive for firms to reduce pollution since /94.5 per cent of permits issued for free and sogovernment failure / heavy polluters can purchasesurplus permits from other firms rather than investin expensive clean technology.
    • Disputes arise over allocation of permits / possiblebarriers to entry.
    • A cost to the government of monitoring andenforcing carbon pollution emissions rules.
    • The valuation of pollution permits may be too riskyto leave to the market.
    • Problem that most countries in the world are notpart of an emissions trading scheme especially US(apart from California).
    • Other schemes might be more effective in reducingcarbon emissions e.g. carbon offsetting orrenewable energy certificates.
    Level Mark Descriptor Level1 1-4 Definition of emissions trading schemeand description of how it works. Level2 5-8 Two or more advantages of theemissions trading scheme. Level3 9-10 Up to one evaluation point for onelimitation of scheme. Level4 10-12 Up to two evaluation points for twolimitations of scheme. Level5 12-14 Up to three evaluation points for threeor more limitations of scheme.
    Its very hard to identify my points, could you suggest a mark if you dont mind or a level in which I have entered
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    (Original post by Econmaster)
    Its very hard to identify my points, could you suggest a mark if you dont mind or a level in which I have entered
    Your points are valid, though it depends on development. Max marks you can get is 12 because you only have 2 eval points.
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    (Original post by epic within)
    Your points are valid, though it depends on development. Max marks you can get is 12 because you only have 2 eval points.
    What if the evaluation point is supported by a diagram such as a shift in supply to the right if the EU Commision increase the amount of carbon permits in circulation.

    Also supported with a explanation which shows that the price has decreased

    Wouldn't I get more credit for that evaluation point
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    (Original post by A-LevelEconomist)
    I think I got around 28 in the MCQ and around 39 in the data response (hopefully) giving me 67 marks out of 100. This should be enough for 90 UMS, I hope.
    67/80 was 89 UMS last year
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    (Original post by Princepieman)
    Nope, it didn't

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    it said a tax upon sales, so its a tax on volumes so i think it's specific tax, sorry
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    anyone answer question 10 and want to share what they put?
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    I did a negative production externality diagram for the 9(e). Then I explained how pollution permits would reduce the social costs but I didn't show this reduction in the diagram. Would I still get full marks for the graph or would I lose marks?
 
 
 
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