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    How's everyone feeling for this exam?

    I'm getting the hang of multiple-choice and have a solid grounding of the theory for the exam. I would appreciate if anyone could help me with:

    25 mark question structure - how do I answer it properly?

    What graphs do I need to know for the exam, just supply/demand (and its variations) and PPF curves?

    Thanks!
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    This might help a little:

    http://www.tutor2u.net/blog/index.ph...paper-may-2011

    Jim
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    Hi i'm revising for the same exam, i'd recommend knowing diagrams for all types of market failure on the course ( for the 25 marker), because any of them could come up - monopolies, demerit goods, merit goods, public goods and then both positive and negative externalities. As for the 12 mark question one of the options is usually just shifting the supply/demand curve based on the text given (easy) and the other is usually externalities. There is often a PPF curve (or two) in the multiple choice but i haven't seen them as a neccessity in any essay questions.

    As for 25 mark structure-
    Introduction- define the key terms given in the essay title or those that are related to title e.g you could define government intervention, or if its about the NHS you could define merit goods (try and get a couple of these in your introduction). Also state why the government must intervene and why they're asking you the question, e.g If it was about reducing smokers you simply state that smoking is bad and generates negative externealities etc.
    2 or 3 (if u have the time) main paragraphs- Make sure you have a balance of answers if the question asks for it e.g evaluate the pros and cons of this method of government intervention you need 2 pros and 1 con (or the other way round). Diagrams help you so much to gain analysis marks + refer to your diagrams in your writing.
    Conclusion- (The most important part)- 15/25 is the max mark without evaluation and most of your evaluation will come from your conclusion (although you should be evaluating as you go along) and it's easy- just sum up your points and make a judgement on what to do.

    Hope this helps
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    (Original post by Inverse)
    How's everyone feeling for this exam?

    I'm getting the hang of multiple-choice and have a solid grounding of the theory for the exam. I would appreciate if anyone could help me with:

    25 mark question structure - how do I answer it properly?

    What graphs do I need to know for the exam, just supply/demand (and its variations) and PPF curves?

    Thanks!
    The video attached below goes through the structure of a 25 mark questions...

    However, use the search bar. People have asked this like a million times.




    also, watch economics tutorials at: http://www.youtube.com/user/multiplexinggamer
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    Hi,

    Just wondering if anyone could explain question 14 of the june 2008 paper to me. How is the answer D?

    Here is the link: http://store.aqa.org.uk/qual/gceasa/...W-QP-JUN08.PDF

    Thank you
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    Hey guys, for the 25 marker, my teacher said we have to discuss methods of intervention and then critique them! Only she hasn't taught us them. So does anyone know the negatives of monopoly, externality and merit/demerit/public gov intervention? If anyones got any notes on this, I would really appreciate having them. Thanks!


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    Well, generally 'negatives' of government intervention may be something which is called government failure - it is when the situation gets worse that if it was left to free market.
    For reducing positive externalities (eg subsidising underconsumed merit goods) there is always an opportunity cost. The government may spend the money on other things - eg. education, healthcare. So it may not be the greatest idea at the time of recession.
    For reducing negative externalities (eg taxing overconsumed demerit goods such as alcohol, cigarettes) there may be a black market created.
    In fact, there are different 'negatives' depending on the case - there is no general think that would fit into all cases of intervention because it depends on what solution the government chose.
    (I could look for my notes about government intervention and try to scan it, but not today, 'revising' for tomorrow's chemistry exam ^^)
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    How is everyone doing for this exam? If you want I will mark essays!

    Is there anything anyone is stuck on, we can all help each other out?

    It all seems alright till up to section B. Anyone got any tips or advice on what you can say when comparing the graphs, how to analyse and evaluate? How to maximise marks or a strategy etc.

    One thing I am slightly confused on is merit/demerit goods and externalities but am going to revise them.

    Make sure to have a look at these videos! They are really helpful! Anyone else got any useful links?

    (Original post by Alex-Torres)
    Check out my YouTube channel for Unit 1: http://www.youtube.com/playlist?list...BSmslqxAwBH6No
    Hope revision is going well

    For definition questions:
    Remember you only need one sentence to get full marks and don't need to put an example. It's good to use definition in essays too so learn them all!

    For notes pm me
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    (Original post by jack0213123)
    How is everyone doing for this exam? If you want I will mark essays!

    Is there anything anyone is stuck on, we can all help each other out?

    It all seems alright till up to section B. Anyone got any tips or advice on what you can say when comparing the graphs, how to analyse and evaluate? How to maximise marks or a strategy etc.

    One thing I am slightly confused on is merit/demerit goods and externalities but am going to revise them.

    Hope revision is going well
    Hey there :P
    I'm pretty much all set apart from the essay... I never know how to evaluate!! :/
    For the multiple choice i've just done all the possible past questions. I'm getting like 24 or 25 out of 25 now because they just recycle the same questions most of the time :') . The data response is also quite straight forward imo, but yeah I get pretty confused on externality and merit/demerit diagrams. Particularly because it's hard to know whether to draw demerit goods with two supply curves or two demand curves...

    Did you say you can mark essays??
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    (Original post by lukeface)
    Hey there :P
    I'm pretty much all set apart from the essay... I never know how to evaluate!! :/
    For the multiple choice i've just done all the possible past questions. I'm getting like 24 or 25 out of 25 now because they just recycle the same questions most of the time :') . The data response is also quite straight forward imo, but yeah I get pretty confused on externality and merit/demerit diagrams. Particularly because it's hard to know whether to draw demerit goods with two supply curves or two demand curves...

    Did you say you can mark essays??
    Yes I will do, I got a few today so if you private message me or want my email then send them to me. Although it will probably be tomorrow. I am revising externalities tonight if you want me to send you the notes. I agree about the essay being the hardest part but its quite easy to get an a if you nail everything else and get average marks on the essay.
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    So, for now, I copied taxation/subsidy notes (for correcting negative and positive externalities). Can't find disadvantages of Government intervention in monopolies.

    1. Taxation
    - direct taxes - paid directly by firms/individuals to the Government ew. income tax/corporation tax
    - indirect taxes - paid via a third party to the Government eg. expenditure taxes - VAT, excise duty; these can be changed to correct externalities
    - taxation will raise the private costs so the demerit goods/negative externality is internalised ie. the person who creates it pays for it
    - this is the 'polluter must pay' principle
    - a tax will increase costs = decrease supply
    - on a diagram, the amount of tax is shown by vertical distance between two supply curves
    ADVANTAGES:
    - Government will raise revenue
    - Economic welfare is improved as less of the good is produced = less negative externality
    DISADVANTAGES:
    - inflationary as price rises
    - hard to calculate exaclty how much the tax should be - hard to put a price on negative externalities
    - equity issue - is it fair to raise taxes?
    - pollution tax - some pollution is created in one country but the negative effects are experienced in others - need co-operation between countries
    - can create a 'black market' - smuggling and selling illegaly

    2. Subsidies
    - Government pays firms to produce goods which have positive externalities/merit goods
    - this reduces costs to firms which will increase supply
    - on a diagram the amount of subsidy is shown by the vertical distance between two supply curves
    - subsidy leads to an outward shift of supply, a lower equilibrium price and a fall in the market price
    ADVANTAGES:
    - prices fall so the demand and consumption of merit goods/positive externalities will increase = increase in economic welfare
    - as prices fall, consumer surplus increases
    DISADCANTAGES:
    - expensive for the Government (opportunity cost?)
    - correct level of subsidy is difficult to gauge - positive externalities are hard to calculate
    - may encourage inefficiency
    - depends on the PED of the product as to the efectiveness
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    (Original post by lukeface)
    Hey there :P
    I'm pretty much all set apart from the essay... I never know how to evaluate!! :/
    For the multiple choice i've just done all the possible past questions. I'm getting like 24 or 25 out of 25 now because they just recycle the same questions most of the time :') . The data response is also quite straight forward imo, but yeah I get pretty confused on externality and merit/demerit diagrams. Particularly because it's hard to know whether to draw demerit goods with two supply curves or two demand curves...

    Did you say you can mark essays??
    Check out my YouTube channel for Unit 1: http://www.youtube.com/playlist?list...BSmslqxAwBH6No
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    For comparing:
    Always, when comparing, include figures.
    Try to look for obvious things first. Don't pick a random year. (It is ok if you say when something was lowest/highest).
    They want two comparisons.

    For essays:
    It is good to talk about government failure in conclusion resulting from it's intervention. ^^
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    (Original post by Alex-Torres)
    Check out my YouTube channel for Unit 1: http://www.youtube.com/playlist?list...BSmslqxAwBH6No
    Hey, I will watch them tonight! I will include that link at the top.

    (Original post by Julia95)
    For comparing:
    Always, when comparing, include figures.
    Try to look for obvious things first. Don't pick a random year. (It is ok if you say when something was lowest/highest).
    They want two comparisons.

    For essays:
    It is good to talk about government failure in conclusion resulting from it's intervention. ^^
    What do you mean, write about the possibility of government failure as evaluation at the end?
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    (Original post by jack0213123)
    Hey, I will watch them tonight! I will include that link at the top.



    What do you mean, write about the possibility of government failure as evaluation at the end?
    Well, basically I mean how the government's intervention may make the situation worse than if they left it for market forces to deal with.
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    (Original post by Julia95)
    Well, basically I mean how the government's intervention may make the situation worse than if they left it for market forces to deal with.
    That's a good point actually. So talk about how the market would deal with it, if at all and then the government solution? I never thought of it like that, is that what you meant?
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    i was wondering what are the main terms to revise for definitions?
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    (Original post by jack0213123)
    That's a good point actually. So talk about how the market would deal with it, if at all and then the government solution? I never thought of it like that, is that what you meant?
    Well, let me give an example.
    People smoke cigarettes. That causes negative externalities. What does the government do? Put more taxes. Then what may happen? Black market is created. So government don't raise revenue, people still smoke, smuggle cigarettes, sell them illegaly and don't pay the tax. That would be an example of government failure.
    N.B. Free market can't really deal with negative externalities - they aren't taken into account by producers.
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    (Original post by Julia95)
    Well, let me give an example.
    People smoke cigarettes. That causes negative externalities. What does the government do? Put more taxes. Then what may happen? Black market is created. So government don't raise revenue, people still smoke, smuggle cigarettes, sell them illegaly and don't pay the tax. That would be an example of government failure.
    N.B. Free market can't really deal with negative externalities - they aren't taken into account by producers.
    Do you think public goods are an example of government failure? Would that be like they can be inefficient etc. like the NHS?
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    (Original post by jack0213123)
    Do you think public goods are an example of government failure? Would that be like they can be inefficient etc. like the NHS?
    Well, if the government didn't provide healthcare, there still would be some healthcare but since it is already a merit/underprovided good. Some people simply wouldn't be able to afford it. There would be more positive externalities (if you are healthy, there is a greater benefit for society, because you are productive and don't spread illnesses).
    Actually, there was an essay about NHS in May 2012 (section B context 2). You can look it up on the internet.

    And about public goods. Who would like to pay for streetlights? One person may do, but there would be people who don't want to do it. Since public goods can't be confined to one person, they must be provided by the government. Otherwise, you would have no street lights on most streets probably. ^^
 
 
 
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