AQA Economics 18th May 2012 Unit 1 Exam

after discussing how to leave unregulated market forces to resolve the issue as your anaylsis for one issue what would you say for the evaluation for this issue?

Reply 181

undertaker1

11

Original post by sach21sk

LOL
same
I think they want you to talk about more leaving to the free market but I don't think you can write two pages about that, I didn't know though that you get limited to level 3 :s

but if we left it to the free market their we be no change. the only reason the government is interfering is because the free market has failed
we why leave it to the free market????????????????
thats brings us back to square one lol

Reply 182

Jakeeyy

Original post by ap1111

after discussing how to leave unregulated market forces to resolve the issue as your anaylsis for one issue what would you say for the evaluation for this issue?

Surely talk about how leaving the market unregulated can lead to market failure, where the market mechanism leads to a misallocation of resources? And provide examples relating the question?

Reply 183

ap1111

Original post by Jakeeyy

Surely talk about how leaving the market unregulated can lead to market failure, where the market mechanism leads to a misallocation of resources? And provide examples relating the question?

when u say market failure what forms of market failure?

Reply 184

Jakeeyy

Original post by ap1111

when u say market failure what forms of market failure?

Well the question and extract will tell you what the market failure is.

Market failure can arise from over production/consumption, underproduction/ consumption, monopolies and all that jazz. The extract does half the essay for you.

I know this isn't evaluation but remember the workings of a market are to provide incentives, so prices perform an allocative function and if governments were to intervene, they could distort the market, reducing incentives and stuff. Efficiency vs equity argument.

Reply 185

Gakthoil

8

I've only just discovered the unit 1 retake for economics is tomorrow afternoon. I've yet to revise as I didn't even know I had it tomorrow.

How can I cram all of this into my head? I have an hour or so now, then the entire morning to cram all of this into my head. Please help me.

Reply 186

nickss

Original post by undertaker1

i dont get it because to evaluate whether governments should intervene or not one firstly needs to analyse all the possible ways of doing so,

lol i dont get it

I guess some people in that paper (I got a c in it last year on that question loool)
were talking about forms of government intervention which weren't really needed for the housing market, maybe they didn't link it back to the housing market either?

Reply 187

tehforum

20

Original post by Gakthoil

I've only just discovered the unit 1 retake for economics is tomorrow afternoon. I've yet to revise as I didn't even know I had it tomorrow.

How can I cram all of this into my head? I have an hour or so now, then the entire morning to cram all of this into my head. Please help me.

Just read the textbook.

Reply 188

tehforum

20

re: leaving to market forces, I replied on previous page

Reply 189

Jakeeyy

Original post by Gakthoil

I've only just discovered the unit 1 retake for economics is tomorrow afternoon. I've yet to revise as I didn't even know I had it tomorrow.

How can I cram all of this into my head? I have an hour or so now, then the entire morning to cram all of this into my head. Please help me.

Im re sitting too and the only revision i have done it today, which is multi choice and reading mark schemes for suggestions on evaluation.

Reply 190

alex7892

OP

2

Free market would break up monopilies.
Free market left to the forces of demand and supply so the signalling, rationing and incentive function can be left to distribute resources based on needs and wants. (what are the signalling rationing and incentive function called collectively?)
Free market creates more choice due to consumers signalling to suppliers/producers what they want..
Are these points valid?

Reply 191

tehforum

20

Original post by alex7892

Free market would break up monopilies.
Free market left to the forces of demand and supply so the signalling, rationing and incentive function can be left to distribute resources based on needs and wants. (what are the signalling rationing and incentive function called collectively?)
Free market creates more choice due to consumers signalling to suppliers/producers what they want..
Are these points valid?

Yes all good.

Market mechanism, was the term you were looking for.

Reply 192

Mystic Creature

Anyone have any for and against points for government regulation/legislation?

I've got so far:

For
It can make certain activites illegal, and if firms do not stick to these laws, they will be fined, which is a good incentive to not pollute etc.
It can introduce fresh new competition into a market, by breaking up an existing monopoly.

Against
Regulation creates an unnecessary burden of costs for businesses
Competetiveness of businesses is damaged
Regulation is expensive in that they have to be policed
Direct controls are slow to change.

Any other points please?

Reply 193

Gakthoil

8

Original post by Jakeeyy

Im re sitting too and the only revision i have done it today, which is multi choice and reading mark schemes for suggestions on evaluation.

That's way more than me, my man. Luckily, I have the good fortune of possessing flash cards which I created last January.

What's the structure again for the multiple choice questions?

Define and explain?

Reply 194

Jakeeyy

Original post by alex7892

Free market would break up monopilies.
Free market left to the forces of demand and supply so the signalling, rationing and incentive function can be left to distribute resources based on needs and wants. (what are the signalling rationing and incentive function called collectively?)
Free market creates more choice due to consumers signalling to suppliers/producers what they want..
Are these points valid?

I guess but i would be more specific, like state how a free market would break up monopolies. Well first of all you are assuming the market is perfectly competitive, and if so then barriers to entry would be low meaning it is easier for people to start up businesses. This would result in excess demand of a given good leading to lower prices. But yes, if monopolies were broken down and the market was perfectly competitive, the pros are more consumer choice, lower prices and so forth.

Forgot to add, basically if people see that businesses are successful and profitable (i.e profits are being made) it does provide an incentive function, that profit is to be made. It also signals too about excess demand..i think...

(edited 11 years ago)

Reply 195

Jakeeyy

Original post by Gakthoil

That's way more than me, my man. Luckily, I have the good fortune of possessing flash cards which I created last January.

What's the structure again for the multiple choice questions?

Define and explain?

Multi choice? Look at the question and take a good guess. Haha, that applies to some of them but a few are obvious. I was really strong on Unit 2 multi choice but never on Unit 1 multi choice...

Reply 196

JamesNeedHelp2

5

Any predictions of what is likely to come up for the 25 marker?

Reply 197

Jakeeyy

Original post by JamesNeedHelp2

Any predictions of what is likely to come up for the 25 marker?

I could guess whats not going to come up- Buffer stocks/price stabilisation, even though that is a pretty straightforward question.

My guess would be something to do with a demerit good. Probably not alcohol but it will be something...

Reply 198

alex7892

OP

2

Original post by Jakeeyy

I guess but i would be more specific, like state how a free market would break up monopolies. Well first of all you are assuming the market is perfectly competitive, and if so then barriers to entry would be low meaning it is easier for people to start up businesses. This would result in excess demand of a given good leading to lower prices. But yes, if monopolies were broken down and the market was perfectly competitive, the pros are more consumer choice, lower prices and so forth.

Forgot to add, basically if people see that businesses are successful and profitable (i.e profits are being made) it does provide an incentive function, that profit is to be made. It also signals too about excess demand..i think...