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    (Original post by Julia95)
    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. ^^
    I will have a look. So government failure does not always apply to public goods?
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    (Original post by jack0213123)
    I will have a look. So government failure does not always apply to public goods?
    Well, no. In fact, without a government intervention (providing streetlights) there may be a complete market failure - for the streetlights, because it is a good example of a pure public good - they wouldn't be provided by free market.
    Don't confuse market failure with government failure, just another kind of tip from my teacher. ^^
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    (Original post by Julia95)
    Well, no. In fact, without a government intervention (providing streetlights) there may be a complete market failure - for the streetlights, because it is a good example of a pure public good - they wouldn't be provided by free market.
    Don't confuse market failure with government failure, just another kind of tip from my teacher. ^^
    Could you explain how an externality leads to market failure? Do you know how it's different from merit/demerit goods?
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    (Original post by jack0213123)
    Could you explain how an externality leads to market failure? Do you know how it's different from merit/demerit goods?
    Well, merit good is a good that is underconsumed (eg. education). It often creates positive externalities. But eg. having a nice garden can also cause positive externalities - your neighbours have a nice view and are happy.
    Demerit good is a good that is overconsumed (eg. alcohol). It often creates negative externalities. But eg. playing music using your new great loudspeakers at night can also cause negative externalities - your neighbours are angry.

    Positive externalities lead to a market failure because more of the good should be consumed for a social optimum. Not enough of a good is consumed (eg. education) therefore there are unallocated resources and there is a welfare loss.

    Negative externalities lead to a market failure because less of the good should be consumed for a social optimum. Too much od a good is consumed (eg. alcohol - drank people are not productive, when they drink far too much they have to go to hospital to be treated etc.) therefore there is a welfare loss.
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    (Original post by Julia95)
    Well, merit good is a good that is underconsumed (eg. education). It often creates positive externalities. But eg. having a nice garden can also cause positive externalities - your neighbours have a nice view and are happy.
    Demerit good is a good that is overconsumed (eg. alcohol). It often creates negative externalities. But eg. playing music using your new great loudspeakers at night can also cause negative externalities - your neighbours are angry.

    Positive externalities lead to a market failure because more of the good should be consumed for a social optimum. Not enough of a good is consumed (eg. education) therefore there are unallocated resources and there is a welfare loss.

    Negative externalities lead to a market failure because less of the good should be consumed for a social optimum. Too much od a good is consumed (eg. alcohol - drank people are not productive, when they drink far too much they have to go to hospital to be treated etc.) therefore there is a welfare loss.
    I thought a merit good is defined as good which has positive externalities
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    (Original post by jack0213123)
    I thought a merit good is defined as good which has positive externalities
    It does have positive externalities, indeed.
    My book definition says: merit good - a good which is underprovided by the market mechanism.
    It would be best if you just stick to what your teacher taught you - he/she certainly knows what is right.
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    (Original post by Julia95)
    It does have positive externalities, indeed.
    My book definition says: merit good - a good which is underprovided by the market mechanism.
    It would be best if you just stick to what your teacher taught you - he/she certainly knows what is right.
    I had to teach myself and I don't know what to tell myself haha
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    (Original post by jack0213123)
    I had to teach myself and I don't know what to tell myself haha
    So, are you doing Economics self study?
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    (Original post by Julia95)
    So, are you doing Economics self study?
    Yep so I am hoping I have learned most of what I need to, have you already completed your course?
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    (Original post by jack0213123)
    Yep so I am hoping I have learned most of what I need to, have you already completed your course?
    No! I'm an As student (but 5 full hours of Economics each week, it is quite enough to know the stuff being careful on the lesson). Exam on Tuesday.
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    (Original post by Julia95)
    No! I'm an As student (but 5 full hours of Economics each week, it is quite enough to know the stuff being careful on the lesson). Exam on Monday.
    Which exam board are you doing?
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    (Original post by jack0213123)
    Which exam board are you doing?
    AQA. I corrected myself - Tuesday (Maths is on Monday, that's why I messed it up.)
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    (Original post by Julia95)
    AQA. I corrected myself - Tuesday (Maths is on Monday, that's why I messed it up.)
    Do you want me to send you some notes I made, you can check them for me if you want?
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    (Original post by jack0213123)
    Do you want me to send you some notes I made, you can check them for me if you want?
    Well, I can have a look at them. You can pm me.
    But I'm just a student.
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    (Original post by Julia95)
    Well, I can have a look at them. You can pm me.
    But I'm just a student.
    You seem smart enough, can you pm me your email as I don't think you can send PDF files on here. it will be good to get your opinion
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    (Original post by shonamaurya)
    i was wondering what are the main terms to revise for definitions?
    Price elasticity of demand
    income elasticity of demand
    cross elasticity of demand
    cross elasticity of supply
    production
    productivity
    division of labour
    specialisation
    exchange
    productive efficiency (firm + economy)
    allocative efficiency
    economies of scale
    diseconomies of scale
    market failure
    private/public good
    free-rider
    externality
    marginal benefit
    marginal cost
    social cost
    private cost
    private benefit
    social equilibrium
    demerit good
    merit good
    monopoly
    price monopoly
    natural monopoly
    immobility of labour
    imperfect information
    regulation
    emissions trading
    subsidy
    nationalisation
    privatisation
    secondary market
    price floor
    buffer stock
    intervention price
    government failure
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    Any ideas what the essay will is likely to be on for ECON1 AQA?
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    (Original post by bestfriends33)
    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
    the answer is d because quantity supplied is 10000and demanded is 6000! This means that there is excess supply of 4000! This will a be a cost on the government!

    As it is provided at 18 pounds you do 18*4000= 72000 which means its d
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    (Original post by ineedtorevise127)
    Any ideas what the essay will is likely to be on for ECON1 AQA?
    It's usually on some form of government intervention as that's where all the things to evaluate are and then bring in everything else.
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    (Original post by jack0213123)
    It's usually on some form of government intervention as that's where all the things to evaluate are and then bring in everything else.
    Ok thanks for that. If you don't mind me asking how do you structure your 25 mark essays in economics?

    I am having really trouble with 25 mark essays?

    I keep getting 9 or 10/25 for every essay
    Is there any good structures that you know?

    Many thanks
 
 
 
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