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    (Original post by Mathematician(ess))
    Analyse two likely implication for the UK economy of the 'productivity gap with its main trading partners'

    First of all, is productivity gap the difference in the output per unit of input with comparison to different countries? It said productivity is higher by 20% in France than UK so does that mean that UK produces 20% less output per unit input.

    Secondly, They said it would cause 'rising unemployment'. How would that work? I would have thought that unemployment would decrease as UK would want to close the gap?

    (This question is from Unit 3, June 2006, Q.1c(ii))
    Productivity probably increases if you get rid of less productive labour, just as the coal industry became more productive when it closed down the expensive deep-mined pits.

    Productivity is probably output per unit labour.
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    This is from Unit 5 Edexcel. I would be glad if you guys could add to my explanations and help me find some evaluation points:

    Q: Examine the impact of ageing populations on the labour markets of developed countries. (15 marks)

    A: Define an ageing population and say how it increases the number of dependants on the working population, i.e. dependency ratio. The following problems may arise:

    1) Labour force becomes less flexible: Older workers tend to acquire less skills or may not want to engage in new training, especially in hi-tech industries. Additionally older workers are geographically less mobile. Also, as the size of the labour supply shrinks, wages tend to rise, adding to wage rises and further decreasing flexibility.

    Evaluation: older workers may prefer to work part-time/temporary contributing to flexibility. Government already planning to raise retirement age to 68??

    2) A higher budget deficit for the government: Since it will have a smaller tax base. More people living longer and claiming pensions along with less people paying taxes arises the problem of how to fund the pensions. Also, people aged 65+ already take up 50% of the NHS spending

    Evaluation:?

    3) Less Economic growth: Increased inflation due to wage rises damages international competitiveness and the exports become more expensive. Global pressures from China already drove wages down. Due to higher wages the firms will have less finance to invest.

    Evaluation: ??


    EDIT: I could also talk about income inequalities and private pension schemes but I can't evaluate that either.
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    Hi really quick question: What is brand proliferation? (is it when large brands segment the market into different compartments and market the same products to each compartment separatley - eg Thomson has its "young people holidays brochure") Also under what market conditions can this phenomenon occur (ie can brand prolif occur in monopolistic comp?)

    cheers x
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    economics unit 1 edexcel -
    in the mark scheme for a question it says DIAGRAMMATIC ILLUSTRATION OF DIFFERENT INCOME ELEASTICITIES FOR FOREIGN HOLIDAYS (2 MARKS)

    I understand the question, but how would i show it on the graph?
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    (Original post by coren111)
    economics unit 1 edexcel -
    in the mark scheme for a question it says DIAGRAMMATIC ILLUSTRATION OF DIFFERENT INCOME ELEASTICITIES FOR FOREIGN HOLIDAYS (2 MARKS)

    I understand the question, but how would i show it on the graph?
    Well as income increases the quantity demanded changes, so for example, if the YED for a holiday to Spain is 1.1 then quantity demanded increases and if a holiday to Canada has a YED of 1.4 then quantity demanded increases even more...so to show this I think you have to draw to diagrams showing that the holiday with the higher YED shifts to the right more than the holiday with the lower YED.

    (I don't do this syllabus so I don't know if that's what you've been taught, maybe it means a diagram with income on the x axis and quantity on y axis, with two lines with different gradients)
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    (Original post by Hanoi)
    Well as income increases the quantity demanded changes, so for example, if the YED for a holiday to Spain is 1.1 then quantity demanded increases and if a holiday to Canada has a YED of 1.4 then quantity demanded increases even more...so to show this I think you have to draw to diagrams showing that the holiday with the higher YED shifts to the right more than the holiday with the lower YED.

    (I don't do this syllabus so I don't know if that's what you've been taught, maybe it means a diagram with income on the x axis and quantity on y axis, with two lines with different gradients)
    I would have thought it would be the gradient of the lines, have the lower YED as a steeper line. You could also show different levels of income as having different quantity demanded.

    EDIT:

    Something like that, but replacing P for Y. (might be wrong of course )
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    UK economy question from a past paper-


    Comment on the extent to which deflation in the USA "could have a potentially devastating effect" on the UK 4 marks.
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    (Original post by gaomeister)
    I would have thought it would be the gradient of the lines, have the lower YED as a steeper line. You could also show different levels of income as having different quantity demanded.

    EDIT:

    Something like that, but replacing P for Y. (might be wrong of course )
    Hmm I'm not sure you can show YED on a price/quantity diagram, however you can show PED with different gradients.

    edit: btw that looks like it's showing PED? You can plot income on these diagrams
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    Elasticity of supply of labour; Doctors more elastic than Roadsweepers, right?
    As there's a greater demand for them, but a limited supply compared to roadsweepers. Or is it that less people want to be a roadsweeper so it's more elastic; doctors won't really quit the profession if pay doesn't rise much, but roadsweepers will, so supply of roadsweepers is more elastic! I'm so confused!
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    Doctors are inelastic in supply, because of the large amount of time taken to become a doctor, special skills required etc etc, meaning that a change in wages would have a less than proportional impact on supply, in the short term at least. Roadsweepers are very elastic, virtually no skills are required (no offence to anyone ) and so a change in wages would have a more than proportional impact on supply.
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    Hey could someone help answer this - looked everywhere for markschemes and papers but seems that Unit 5a just has very few available.

    Evaluate three major causes of inequality and poverty for people aged over 65 in the UK, apart from the differences in pensions provision.

    Thanks
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    (Original post by Mokert23)
    Hey could someone help answer this - looked everywhere for markschemes and papers but seems that Unit 5a just has very few available.

    Evaluate three major causes of inequality and poverty for people aged over 65 in the UK, apart from the differences in pensions provision.

    Thanks
    just a minute,..
    I'm trying, but also having difficulty
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    Im sure one of them is housing prices, as they rise wealth and income are skewed in favour of the section of the over 65s that own property. Housing is major cause of inequality in the distribution of wealth. Where property is owner-occupied it tends to constitute a very significant proportion of the wealth of those who own it.

    Increased life expectnancy in the UK is increasing due to factos such as improved diet and healthcare. THis means that people are enjoying longer retirments than previously, especilly if you look at the trend now to retire earlier, and any pension fund that they have build up has to be stretched over a longer period of time. If such a fund has to finance a retirment of 20 years rather than ten, it will only yield half the amount if had done previously. Leading to greater relative poverty.

    Third point? + need evaluation
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    k one so far, this is how I'd write it...
    (is this a 15 mark q btw?)

    1) People aged over 65 tend to be less flexible. They are less able to do specialised work, especially those involving a lot of manual labour, or use of hi-tech machinery, and hence their productivity in many roles is limited. They are then not seriously considered for many types of jobs, and even in those which an over 65 could do, younger more dynamic workers are given preference. Hence age discrimination causes older people to have higher unemployment, as they find it harder to get a job. This isn't the case in all industries though, as experience is more valued in certain office jobs, and many older workers have been working for the same firm for decades, and hence their loyalty is rewarded.
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    k that ^^ can be the third point then! job done lol :p:
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    Yeah 15 ... looks good. I hate this unit!!!!
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    kk using what you wrote too, here's my attempt at this question, as I'd now write it in the exam (thanks to your help :p:)...

    People aged over 65 tend to be less flexible. They are less able to do specialised work, especially those involving a lot of manual labour, or use of hi-tech machinery, and hence their productivity in many roles is limited. They are then not seriously considered for many types of jobs, and even in those which an over 65 could do, younger more dynamic workers are given preference. Hence age discrimination causes older people to have higher unemployment, as they find it harder to get a job. This isn't the case in all industries though, as experience is more valued in certain office jobs, and many older workers have been working for the same firm for decades, and hence their loyalty is rewarded.

    Stored assets in terms of housing are a major (if not the greatest) source of wealth in the over 65’s. Where property is owner-occupied it tends to constitute a very significant proportion of the wealth of those who own it. As housing prices rise, wealth and income are skewed in favour of the section of the over 65s that own property. Housing is major cause of inequality in the distribution of wealth, as those without their own house tend to get worse off due to higher rent costs, as opposed to those who are benefiting from the increase in housing costs. However, this would not apply to the people over 65 that live with family, or in a nursing home, as the value of their stored assets does not affect their standard of living disproportionately.

    The life expectancy in the UK is increasing due to factors such as improved diet and healthcare. This means that people are enjoying longer retirements than previously, as they live longer. As people now tend to retire earlier, any pension fund that they have build up is inevitably stretched over a longer period of time. If such a fund has to finance a retirement of 20 years rather than ten, it will only yield half the amount if had done previously, thus leading to greater relative poverty. However, whilst pension funds are depleting, an increase in ISA’s etc could counteract the problem, by transferring the funds into an ISA, which would offer greater rates of return.
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    Thats a good answer, 3 points evaluation of each point. 13+/15 if not full marks.

    Now just need that standard tommorow, without researching and spening 2 hours on each question. Damn. Lol
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    How can providing benefits to poorer people lower income inequality? How can I expand?
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    (Original post by Mathematician(ess))
    How can providing benefits to poorer people lower income inequality? How can I expand?
    Talk about where the benefits come from? i.e. Take from the rich and give to the poor - robin hood!
 
 
 
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