AQA Economics Jan 31st 2012 Unit 4 Exam

It was okay ish...I spoke about devaluing of the currency to attract exports, the elasticity of the goods, subsidises to infant and sunrise firm to enable them to be internationally competitive...what did you write for the 25 mark?

That's exactly the same as what I did!
How did you find it?

Did anybody do the Section B question on sustainable growth, if so, what did you write about?

Half way through writing the essay I realised that I'd made a huge mistake in not doing the one on exchange rates and unemployment

I did this question and also did not mention these neither. I mainly talked about how the supply side, the competition between firms and also other issues(just for evaluation...) like scarce of resources and environmental issues can lead to the change in profits and PDI and then increase the spending of private sector. Something like that, I am not sure but I think they are related to sustainable growth...(hope so...)

And you don't need to mention all the reasons, just take 2 to 3 issues to discuss and then take one of them as the most important reason. That's what i did today.



Umm, for the Data Response (Globalisation), was it the balance of payment deficit? and therefore possible to write it into a negative number if I stated the balance of payments = ........=$-1.2 billion, something like this? (I may forget the answer...)

I did this question and also did not mention these neither. I mainly talked about how the supply side, the competition between firms and also other issues(just for evaluation...) like scarce of resources and environmental issues can lead to the change in profits and PDI and then increase the spending of private sector. Something like that, I am not sure but I think they are related to sustainable growth...(hope so...)

And you don't need to mention all the reasons, just take 2 to 3 issues to discuss and then take one of them as the most important reason. That's what i did today.



Umm, for the Data Response (Globalisation), was it the balance of payment deficit? and therefore possible to write it into a negative number if I stated the balance of payments = ........=$-1.2 billion, something like this? (I may forget the answer...)

what were all your arguments for the sustained growth question?

Scarce of resources like oil, may lead to cost-push inflation, where may affect the profits therefore the spending may not be increased. It may lead to reduce the productivity.
As oil is becoming a scarce, firms have to find an alternative resources. However, it takes time and more money therefore the cost may increase in the short term.

As the pollution like Co2 emission is being concerned, more policies on limiting Co2 emission are issued. Therefore firms have to take a long time on developing other production methods in order to reduce the cost of paying the extra limits of Co2 emission and new development on production by using alternative resources.

I do not have confidence now

neither do i! i wrote none of that, i just wrote that it will create employment, so less government spending is needed on benefits, and that it may cause inflation
my conclusion just said that creating better welfare conditions is more important :s

Sorry but why would you argue that environmental issues lead to change in profits ? The question was basically what are other reasons for economic growth apart from the given benefit of increased private sector consumption ?

but I am sure that I did not mentioned the increased benefit of private sector will increase the aggregate demand in my essay...not sure it'll be fine...

thought the 25 marker was straight forward, banged on how it can wreck AD possible recession etc then mentioned market forces might correct it by readjusting price in floating exchange rate then said surplus can be just as bad as other countrys may invoke traffifs as not all can have surplus and also can overcook the economy so best to have a balance. hopefully done enough to get a good B mark.

Sounds good...should get higher if you wrote all that .. I spoke about increasing trade deficit can be seen to be good - because it increases living standards and choice through an increase in imports..but I sided more with the negative, for example less exports, can cause negative growth, unemployment because of less output being produced - which means the domestic economy is less competitive and spoke about imported inflation. Then just explained potential policies that could be addressed to prevent an increase in the trade deficit - so quotas, subsidies to domestic firms and a devaluation in the current economy - missed out automatic stabilisers was pretty gutted but hope what I wrote was enough to get me a decent grade!

oh yeh and finally, did anyone mention for india question in conclusion, something along the lines that if india do not reduce protectionism then their economic growth will not be of any importance to the UK and thus other markets around world will be more important such as US and EU...........

between 57-59 for A

Firstly, for this question I did the general simple relationship then went into it depends on the state of the economy, also depends on whether services is a surplus and thus whether it cancels out defcit for good and finally it depends on other factors influencing AD which are more influential in determining UK economy as deficit of good may create external imbalance but not internal.

But a rise in private sector consumption DOES lead to an increase in AD...