[AQA] - Economics Unit 1 January 15th - [2013]

in context 1

what was the actual question for the 12 marker (graph)?

because some people have drawn two graphs and compared them , then some have done just either an elastic or inelastic graph - and now i can't even remember what the question asked

for 25 marker a vaguely talked about junk food being as a demerit good as it had a cost to NHS of something about in the introduction of my essay.

then a did other 3 paragraphs as
subsidy on healthyfood
tax on junk food
advertisement on healthy food
evaluation

would that be ok?

Guys!! In context 1 question 3 I analyzed and drew a graph about this: if a lot of people were to switch from petrol/diesel cars to electric then when gov increases tax on petrol by 50% to complement the lost revenue from people who used petrol/diesel cars and switched to the new alternative it's revenue will fall because demand is price elastic for petrol/diesel cars since there are new substitutes such as electric cars.
I have a feeling that I answered the wrong question - please reassure me!

Guys, in context 2, for the 12mk, did people say that due to the reason that soya and rick and so on is subsidised, their prices are lower. Since the soya, rice are used in the production of the fast food, the firms making the fast food face lower production costs as their raw materials (soya and rice) are lower price (from the subsidy) and so the are able to produce more and shift the supply curve to the right and so increase the amount in the market.
Also defines subsidy and supply.
Drew a shift in the supple curve to the right.

How many marks do you think I get?

A2 student as well got C3 next week and ECON3. Are you ready for it?

Woop i have the same!

yes I said that supply increases, price decreases, qty increase - new equilibrium q2p2.
Didn't really answer the question though!! ARGHHHH
Just said that the opp cost between unhealthy foods and healthy food decreases so more likely to be consumed.

For the 25 marker i flipped up aswell

defined few things -

Did a merit good diagram of healthy foods - said the external benefit can be subsidised to reduce the price. No market failure as the price mechanism includes the external benefit? Forgot to say no excess demand !

Against I did the functions of price in a free market - dont work as more likely to increase demerit goods but high price can increase supply of healthy merit goods.
Functions of price - Merit goods under consumed, market failure, resources miss allocated.

Overall - tax hits people on lower incomes more as they spend a higher proportion of income on tax. Not sure if i said that this is a market failure as it leads to an unequal distribution of income. But I wish I did say that!
Min price might cause secondary markets to open, makes gov intervention ineffective.
Therefore subsidy (I think) increases consumption over LR - from extract 1 theres a big SR increase from 2000 to 2001 but then decrease which suggests it occurs over LR. Supplys inelastic (have to grow+harvest) - so increase in qty will occur over LR

I used gov failure, market failure throughout and evaluated.



Wish I used diagrams though and mentioned that Denmark have stopped the tax!!

How many marks do you think i'll get for my 12 and 25??
Need an A so bad!

Hi,the 12mk q asked what would happen to the market for fast food if subsidies were given to the raw materials (soya and rice) or something around that lines. So personally, I think that was answering the q if you wrote (what i think) along my lines.

Guys, in context 2, for the 12mk, did people say that due to the reason that soya and rick and so on is subsidised, their prices are lower. Since the soya, rice are used in the production of the fast food, the firms making the fast food face lower production costs as their raw materials (soya and rice) are lower price (from the subsidy) and so the are able to produce more and shift the supply curve to the right and so increase the amount in the market.
Also defines subsidy and supply.
Drew a shift in the supple curve to the right.

How many marks do you think I get?

For context 2
for the 5 mark definition q, marginal private cost!
i wrote that this is the added costs created by a firm or individual and suffered by that firm or individual. Then I gave an example of smoking and the causes it will have on someone's health... Do you think I would get full marks for this?

has a mark scheme for the multiple choice been made yet?