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Question spotting for F585 Economics The Global Economy OCR A level June 2011 watch

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    (Original post by Hubb)
    Hi there,

    Due to lack of past papers and little practise on shorter questions - have no idea how much to write for the 4 and 6 markers?

    Any advice?
    For the 4 Markers - I would Define the key concept and possibly provide an example which should gain you the full 4 Marks.

    For the 6 Markers - Define the key concept (if there is one) and analyse two/three points with an added diagram if possible!
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    Does anyone have a plan for
    '' Discuss the extent to which the Euro Area is an optimal currency are and whether this matters for the long-term viability of the currency union''.. i'm struggling a bit with it!
    Thankyou !!!
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    (Original post by ASDFGHJKLQWERTYUIO)
    Does anyone have a plan for
    '' Discuss the extent to which the Euro Area is an optimal currency are and whether this matters for the long-term viability of the currency union''.. i'm struggling a bit with it!
    Thankyou !!!
    This is what i have so far

    - Define and an optimal currency area
    - What are the characterisitics of an optimal currency are - in order for it to work the country have to be in a small dnesity(few countries) yet highly integrated
    - GO through the factors of the OCA relating to the long -term vaiability of the Euro
    1. they are at the highest integration - pull up some facts and figures saying that they contribute a significant proportion to global gdp and trade
    2. they do not have suffienciently flexible lbaour markets as they were effected by the recession - think of SPAIN and structural unemployment
    3. Lack of convergence
    4. Fiscal transfers


    -Anyalse these and evaluate them.
    - Lack of convergenece is some extent due to the fact that some countries joined the euro without meeting the covergence criteria and a interets rate not fitting all countries and a constraint on fiscal policy (SGP)

    i have not fully answered teh question as you have say whether it matters for the long term viability of the currency union. I feel that it is not an optimal currency due to a lack of convergence, structural unemployment (leads to labour market inflexibilty), Remember long term viability of the currency union is that can it sustain growth and devlopment unemployment will cause lower living standards + there are government budget deficits. Unemployemt will lower growth, but taht depends on the size of the unempolyement. that is all i can think of atm, i am sure there is more
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    (Original post by ajayhp)
    This is what i have so far

    - Define and an optimal currency area
    - What are the characterisitics of an optimal currency are - in order for it to work the country have to be in a small dnesity(few countries) yet highly integrated
    - GO through the factors of the OCA relating to the long -term vaiability of the Euro
    1. they are at the highest integration - pull up some facts and figures saying that they contribute a significant proportion to global gdp and trade
    2. they do not have suffienciently flexible lbaour markets as they were effected by the recession - think of SPAIN and structural unemployment
    3. Lack of convergence
    4. Fiscal transfers


    -Anyalse these and evaluate them.
    - Lack of convergenece is some extent due to the fact that some countries joined the euro without meeting the covergence criteria and a interets rate not fitting all countries and a constraint on fiscal policy (SGP)

    i have not fully answered teh question as you have say whether it matters for the long term viability of the currency union. I feel that it is not an optimal currency due to a lack of convergence, structural unemployment (leads to labour market inflexibilty), Remember long term viability of the currency union is that can it sustain growth and devlopment unemployment will cause lower living standards + there are government budget deficits. Unemployemt will lower growth, but taht depends on the size of the unempolyement. that is all i can think of atm, i am sure there is more
    Ah thank you, no thats really helpful! I will write out a plan and develop your ideas!!!
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    (Original post by mqt)
    Hey guys, I thought that it would be a good idea to start discussing and helping eachother how to plan these 20 markers... I've got some of the suggested (SUGGESTED!, don't quote me that these will be the questions) exam style questions for it...
    I thought i'd just list them all, and i'll give it a go at planning ... then if you guys don't mind, i'm going to start typing some of my answers up...not now, cause got to concentrate on c4, but you guys cn give me a heads up please?

    1. Discuss *the *extent *to *which *international *agreements *to *reduce *trade *barriers *are *a *useful * way *of *stimulating *economic *growth *in *the *short *to *medium-*?term *and *in *the *long-*?run *(20) *

    2. Attempts *to *cut *budget *deficits *and *government *debt *in *the *early *stages *of *a *recovery *may * damage *a *country's long-*?run *economic *performance. *Discuss *(20) *
    3. "Spain must introduce policies to improve international competitiveness" -- *Assess *the * * policies *that *are *likely *to *be *effective *in *achieving *this *aim *for *the *Spanish *economy *(20) *

    4. Discuss *the *extent *to *which *the *Euro *Area *is *an *optimal *currency *area *and *whether *this * matters *for *the *long-*?term *viability *of *the *currency *union? *(20)
    *
    5. To *what *extent *is *the *European *Central *Bank *right *to *continue *to *set *interest *rates *to * maintain *low *inflation *for *the *Euro *Area *as *a *whole? *(20)
    *
    6. How *far *do *you *agree *with *the *view *that *countries *that *are *not *economically *convergent * should *not *be *allowed *inside *the *single *currency *area? *

    7. Despite *the *difficulties *experienced *by *the *PIIGS *nations *in *recent *years, *the *European *single * currency *area *has *been *a *success. *Discuss *(20) *

    8. If *the *UK *had *joined *the *euro, *do *you *think *the *country *would *have *fared *better *during *the * recession? *(20) *

    9. If *Spain *had *its *own *currency, *it *could *let *the *value *of *its *currency *fall *to *a *level *that *would * make *the *country's *tradable *goods sector competitive. Evaluate the view that Spain's economic *performance *would *improve *by *a *currency *devaluation *and *leaving *the *Euro *Area * (20) *

    10. "Tariffs, domestic subsidies and *other *forms *of *protectionism *risk *a *country *sacrificing * medium-*?term *growth *opportunities *for *near-term economic interests" Do *you *agree? *(20)


    I'm going to take a crack at planning number 3, please give me a heads up if you got anything to add ...:
    Plan:
    Some basic knowledge and an introduction on Spains situation. Definitions oncompetitiveness, relative labour unit costs, output prics... (they are uncompetitive)...
    Policies which could be used.... list a few

    Define supply side policy,
    then, which ones could be used....

    Trade liberalisation... (btw, are things like reducing barriers to entry and domestic subsidies examples of trade liberalisation? or is trade liberalisation deregulating the market?)..... Why it's effective...what this depends on...

    Reducing barriers to entry, i.e removing tariffs, reducing quotas...how is this beneficial... why it may not be the best option for spain...as it does not necessarily improve trade within the euro area (is this valid at all btw)

    Privatisation and deregulation,...effective...brin g prices down...more competitive in general... what does this depend on

    Short term effect, long term effect...these are effective because?... refer to the question....
    erm...yeah..don't really know how to end it :/ thank lolx
    Liberalisation means deregulation and other measures, including the lowering of trade barriers, aimed at opening up a market or industry to full competition. In the context of world trade it is a process whereby countries sign bilateral or multilateral trade agreements to reduce import tariffs, quotas and other forms of protectionism in a bid to stimulate greater trade in goods and services.

    also, say that demand-management are of little use as the there are constarints of the polices liek the ECB setting intrest rates and the SGP, SSP's are the main way to go, Remember unit labour costs can be reduced by an increase in productiivty, so i would focus on education and training. Education increases productivity and AS due to producitivity increase the quality of the labour force. The government can give subsidies to firms, but they may become to relaint on these sunbsidies and may become productivly ineffcient as there is no need to keep costs low.

    You said that it would bring prices down talk about consumer surplus and producer surplus. it depends on the PED of the good. Reducing barriers to entry could really harm Spain atm as they are uncompetitive so, intense competition could potentially close some idustries down - unemployment. also it does not depend on price competitivenes but also about the quality of the product, if it is a good quality of product, consumers are still likely to by it because they know it is gd quality, this is all i can think of atmm

    u on edexcel for c4?
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    The toolkit seems to suggest that the 20 markers could be from any 4 extracts, but my teacher is "95% sure" it will be from extract 4, regarding trade liberalisation.
    What does everyone think?
    Will it be from extract 4 or, any of the extracts?

    Thanks
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    (Original post by costello_music)
    The toolkit seems to suggest that the 20 markers could be from any 4 extracts, but my teacher is "95% sure" it will be from extract 4, regarding trade liberalisation.
    What does everyone think?
    Will it be from extract 4 or, any of the extracts?

    Thanks
    yeh there is a greneral trend if you look at past papers they had the last question on extract 4
    Attached Images
  1. File Type: pdf ocr_50196_pp_10_jan_gce_f585.pdf (113.3 KB, 115 views)
  2. File Type: pdf ocr_50197_pp_10_jan_gce_f585_stimulus_mat.pdf (130.1 KB, 85 views)
  3. File Type: pdf ocr_52084_prm_gce_unit_f585_jan_10.pdf (152.1 KB, 299 views)
  4. File Type: pdf ocr_57307_pp_10_jun_gce_f585.pdf (124.5 KB, 91 views)
  5. File Type: pdf ocr_57308_pp_10_jun_gce_f586.pdf (106.2 KB, 105 views)
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    Hey I was wonderIng if anyone had good evaluation points for the piigs having a fall in competivnes.
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    (Original post by ajayhp)
    Liberalisation means deregulation and other measures, including the lowering of trade barriers, aimed at opening up a market or industry to full competition. In the context of world trade it is a process whereby countries sign bilateral or multilateral trade agreements to reduce import tariffs, quotas and other forms of protectionism in a bid to stimulate greater trade in goods and services.

    also, say that demand-management are of little use as the there are constarints of the polices liek the ECB setting intrest rates and the SGP, SSP's are the main way to go, Remember unit labour costs can be reduced by an increase in productiivty, so i would focus on education and training. Education increases productivity and AS due to producitivity increase the quality of the labour force. The government can give subsidies to firms, but they may become to relaint on these sunbsidies and may become productivly ineffcient as there is no need to keep costs low.

    You said that it would bring prices down talk about consumer surplus and producer surplus. it depends on the PED of the good. Reducing barriers to entry could really harm Spain atm as they are uncompetitive so, intense competition could potentially close some idustries down - unemployment. also it does not depend on price competitivenes but also about the quality of the product, if it is a good quality of product, consumers are still likely to by it because they know it is gd quality, this is all i can think of atmm

    u on edexcel for c4?

    Thanks!!!! that was loads of help! hahaha
    nope, on mei... apparently edexcel is easier or so they say?...lol...i've had a's in all of them aready but, i still need like two b's...and c4 is so hard! ...and d1 is like argh! i hate it lol...what about you?
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    (Original post by mqt)
    thank you so much! i will really enjoy your help! ! i need an A SOOO BAD! how much quantity would you say ou need to make...also, how many points and how much detail would you say theyre looking for thnks!
    Hey I do not remember how many paragraphs I wrote for the 20 mark question since it was almost 2 years ago since I did that paper... BUT I remember the 20MARK question was where I used HOWEVER a billion times... always comparing and REFERRING to the CASE STUDY....

    From what I can remember reference to the case study in each question is necessary!.
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    (Original post by costello_music)
    The toolkit seems to suggest that the 20 markers could be from any 4 extracts, but my teacher is "95% sure" it will be from extract 4, regarding trade liberalisation.
    What does everyone think?
    Will it be from extract 4 or, any of the extracts?

    Thanks
    Hey, could you send me the toolkit if possible, or anyone else? [email protected]
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    I've been looking on the internet for some notes/annotations on the pre-release as I lost my copy last week, I could have cried xD but can't really find anything, does anyone know where I can find something like that?
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    are the tutor2u gd predictions of the questions
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    also why does it matter that comparative advantage does not take into account transport costs
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    (Original post by ajayhp)
    also why does it matter that comparative advantage does not take into account transport costs

    Because although a country may have a comparative advantage at producing a product, if the transport costs are very high, it may be the case that a domestic firm can actually produce the good themselves at a lower cost than if they imported it from the country who have a comparative advantage in the good. Hope this helps
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    (Original post by Emma292929)
    Because although a country may have a comparative advantage at producing a product, if the transport costs are very high, it may be the case that a domestic firm can actually produce the good themselves at a lower cost than if they imported it from the country who have a comparative advantage in the good. Hope this helps
    Although transport costs have dropped MASSIVELY over the past few decades due to technological progress allowing for massive economies of scale e.g. containerisation. So it isn't really that much of issue - I guess it also depends on the type of product.
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    Extract 3, Spain is suffering from cost-push inflation, yes?
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    yes due to rises in unit labour costs and a rise in commodity prices

    (Original post by Doughnuts!!)
    Extract 3, Spain is suffering from cost-push inflation, yes?
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    (Original post by ajayhp)
    yes due to rises in unit labour costs and a rise in commodity prices
    Good good, precisely what I thought.

    If you don't get 100 UMS on this exam, I'll be very confused.
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    (Original post by Doughnuts!!)
    Good good, precisely what I thought.

    If you don't get 100 UMS on this exam, I'll be very confused.
    why?

    i am not that clever in eco, trust me
 
 
 
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