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F581/ F582 Economics June 2013 Watch

  • View Poll Results: How hard did we find this exam ?
    so hard i felt like crying through the exam
    13
    12.50%
    very difficult , but one or two were alright
    13
    12.50%
    fairly standard
    33
    31.73%
    quite easy , with one or two hard ones
    35
    33.65%
    so easy i felt like dancing throughout the exam
    10
    9.62%

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    What did everyone else do for the demand + supply diagram
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    (Original post by Fas)
    yeah mentioning positives was an added bonus , but the question mainly revolved around the negative externalities ( why would you use regulations to reduce the positive externalities , doesn't make sense )

    The essay didn't have to link back to the case study did it ?
    Hmm it actually said use regulation to correct market failure. so yes it could. such as make all children go to gym every week or smth. this is regulation correcting positive externality.
    it didn't have to but i found it easier with giving examples
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    [QUOTE
    =Fas;42670390]yeah mentioning positives was an added bonus , but the question mainly revolved around the negative externalities ( why would you use regulations to reduce the positive externalities , doesn't make sense )

    The essay didn't have to link back to the case study did it ?[/QUOTE]

    I made no reference to case study as the question made none

    I talked bout negative externalities and market failure due to information failure and how regulations solved them. Then the benifits/negatives of using regulations . Then suggest infornation provision as alternative, with the benifits and costs of that and conclided that info prov would we better
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    (Original post by Akak)
    Hmmm I did that at first then at the last minute I looked in the extract and it didn't say anything about demand factors? It just said that demand fell due to the increase in price which I thought was a contraction in demand. That confused me too when they said "demand and supply". Really confused
    They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.
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    Could someone listen the questions and marks allocated to each question please, I'm trying to calculate roughly how many marks I got
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    (Original post by Economist21)
    They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.
    yep this was exactly my reasoning for shifting both lines
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    Do you reckon I will lose all my marks for that question then?
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    (Original post by Fas)
    yeah mentioning positives was an added bonus , but the question mainly revolved around the negative externalities ( why would you use regulations to reduce the positive externalities , doesn't make sense )

    The essay didn't have to link back to the case study did it ?
    No it doesn't have to link back to the case study. In the June 2009 paper the case study included air transport and the question was 'Discuss whether taxation is the most effective solution to the market failure arising from negative externalities. The mark scheme included this:

    This question requires a discussion of the merits of taxation as a means of dealing with the market failures that arise when there are negative externalities.The use of 'most effective' in the question implies that other means are available and should be discussed. No specific context is given in the question, although clearly some application to air transport is relevant.

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    What a peach of an exam The National Economy was! I had literally prepared that essay a couple of hours before

    Although I'm kinda' annoyed with myself - I got the allocative efficiency definition mixed up so will have only got 1/2, and then didn't get too much l4 in the essay as I'd wrote so much for everything else that I ran out of time Managed to get onto the second extra page! I need to sort my life out and learn to condense

    What a peach of an exam The National Economy was! I had literally prepared that essay a couple of hours before

    Although I'm kinda' annoyed with myself - I got the allocative efficiency definition mixed up so will have only got 1/2, and then didn't get too much l4 in the essay as I'd wrote so much for everything else that I ran out of time Managed to get onto the second extra page! I need to sort my life out and learn to condense

    Also to people worrying about negative externalities - it wasn't a problem if you didn't go into depth about them if you used demerit goods!
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    (Original post by Economist21)
    They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.
    In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

    So technically the 'decrease in demand' followed on from 'because of a fall in price'

    Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.
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    (Original post by Akak)
    Do you reckon I will lose all my marks for that question then?
    nope - you'll lose one mark for not shifting the demand line , but that should be it tbh unless your comments are messed up lol
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    What was the YED for foreign markets?
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    (Original post by Akak)
    Do you reckon I will lose all my marks for that question then?
    2 marks if we're wrong by not shifting the demand curve. I'm pretty sure we're not though because the case study did specifically state demand decreased because of a rise in prices.
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    (Original post by Kenny Loftun)
    In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

    So technically the 'decrease in demand' followed on from 'because of a fall in price'

    Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.
    Demand must've fallen due to higher prices of oil? Not only firms use oil but also consumers therefore income would fall wouldn't it?
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    (Original post by Kenny Loftun)
    In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

    So technically the 'decrease in demand' followed on from 'because of a fall in price'

    Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.
    they would be really really dickish if one was right and the other was wrong and they decided to drop all the marks for the question for the people that got it wrong ! that said it would reduce grade boundaries loads haha

    i honestly think they will accept both aslong as youve reasoned it well in your explanation
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    (Original post by Economist21)
    Demand must've fallen due to higher prices of oil? Not only firms use oil but also consumers therefore income would fall wouldn't it?
    I'm just stating what the case study said in the first paragraph. It said supply fell due to increases in the price of oil and tightening regulations which has led to an increase in the price causing a decrease in demand.
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    To be honest , the case study did mention that demand fell due to an increase in price - but it also mentioned that demand fell due to a fall in consumer incomes and that it fell altogether. It's really upto OCR , there's no way any of us can be definite for sure that what they have put is right
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    (Original post by Kenny Loftun)
    I'm just stating what the case study said in the first paragraph. It said supply fell due to increases in the price of oil and tightening regulations which has led to an increase in the price causing a decrease in demand.
    So income didn't fall due to higher fuel prices? I'm sure it has a knock on effect which will lower consumer income.
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    Questions were (might not be in the correct order)

    1) Factors of production - 4 marks

    2) a) Two reasons for a fall in supply - 6 marks

    2 b) demand & supply diagram / market equilibrium - 6 marks

    3) a) Consumer surplus definition - 2 marks

    b) Consumer surplus diagram - 4 marks

    4) a) YED definition - 2 marks

    b) YED comment question - 6 marks

    5) a) Allocative efficiency definition - 2 marks

    b) Explain whether market in UK has become more allocative efficient - 4 marks

    6) Information failure question - 6 marks

    7) Final essay question - 18 marks
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    To peolple saying demand fell due to increased prices

    The csse study also said demand fell due to decreased consumer incomes. A key determinant of the demand curve.

    However, as they emphasised supply AND demNd, with AND bolded it leads to me think you had to shift both inwards
 
 
 
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