AQA Economics 18th May 2012 Unit 1 Exam

for context 2 12 marker, i think i went a bit offbeat. i said that the government had effectively imposed a maximum price of healthcare of 0, meaning that there would be an excess demand of Q1 workers, along with an ageing population so this demand is increasing, represented by a diagram. not sure i answered the question properly :/

guys for the 12 marker at the end i put three definitions in; demand, supply and monopoly. how many marks would i get for this?

Thank you, is 11 a?

right , so your sayiong the statement would read market failure arises whenever firms create externalities... thats obviously not true.

b, however, shows inefficiency which is a market failure

That is also what I got, yes.

That is also what I got, yes.

right , so your sayiong the statement would read market failure arises whenever firms create externalities... thats obviously not true.

b, however, shows inefficiency which is a market failure

That is also what I got, yes.


1.) B
2. C
3. D
4. C
5. A
6. D
7. D
8. C
9.A
10. C
11. A
12. B
13. D
14. C
15. B
16. C
17. B
18. D
19. D
20. A
21. A
22. B
23. C
24. A
25.B

Can someone put together a definite marking scheme! haha cos everyone is saying different things

i did the earth materials question, for question c i did a supply digram shifting to the left as i though it was talking about what would happen if the chinese capped their exorts, i got told i read the question wrong but did i?

also for question d firstly i done a definition for neg externalities then went on about regulatiosn and explain and evaluated it, drew a external cost diagram (msc above mpc), then went on about taxation and finally evaluated it all, i also got told that i was wrong for this and i should have wrote about how earth materials contribute to msb as they help hybrid cars and so on.... so in question d i spoke about neg externalities alot & gov intervention.

was i wrong for this also? thanks

Maybe people are getting confused between market failure and government failure on number 11?

I shifted the supply to the left as well, as China limited export to raise prices, thus supplying less.

For part four, I talked about government intervention (legislation/taxed/so on) and government failure. Compared it to free market where natural monopolies can occur, leading to productive inefficiency, and also market failure. Compared the two and concluded.

You're fine, I think.

Did you get A?

I got C for 11.