OCR F581 Markets in Action - 11 May 2015

What evaluation points did you make?

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I defined AF explain how it recent times it was becoming less AF using the case study
my evaluation was weak for that question i'd say: the extent to which prices increase the greater the increase the less consumer satisfaction thus being Less AF
any marks for evaluation possibly?
other question were pretty decent

Basically my analysis was that it was allocative efficiency with an example from the case study and a definition.
Then my evaluation went HOWEVER and then described how in the long run they would struggle to keep up this allocative efficiency with another example from the case study.

A bit of elaboration on each section, and I had my answer.

Definition and examples for analysis are good. That should get you 2-3 marks (provided you linked the example with supply increasing in line with demand).

I used different evaluative points: market failure and externalities/information failure/value judgments having to be made. This was a rather open question, so I guess many things will be accepted.

Depends on your elaboration: what you wrote can get 1-2 marks.



Yeap. That ought to work well. You could have made it clearer why it won't last (if you did, then all's good), but still a good answer imho.

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I said it only AF for the biofuel market but not for the rice since all the farmers are switching to produce biofuel, the supply of rice will not be enough to meet demand, and i also said in the long term,because all the farmers are switching, the supply of biofuel may excess demand and the market would collapse, therefore Allocative inefficiency

I said it only AF for the biofuel market but not for the rice since all the farmers are switching to produce biofuel, the supply of rice will not be enough to meet demand, and i also said in the long term,because all the farmers are switching, the supply of biofuel may excess demand and the market would collapse, therefore Allocative inefficiency

What examples did people use for the essay??

Hi everyone,


I did the 18 marker all correct except I kept referring to the example I gave as a demerit good that is underconsumed instead of a merit good that is underconsumed!! How may marks will I drop? Everything else I did was ok just that simple mistake!

They'll probably understand but you will definitely lose some marks, I'd say you'd get around 14? I did an essay in class many months ago where I did a similar mistake and got 13 but I also dropped some marks because I didn't have a conclusion so you might get 14 or so.

I spoke about how wind farms are proof that subsidies have long lasting effects on positive externalities
Subsidies depend on elasticities
Don't remember other points

That's not how it works. If his analysis is near perfect, they may not detract any marks from his essay.

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But if there are demerit goods, there isn't an under-consumption of the good. There cannot be a perfect analysis surrounding a concept that doesn't truly make sense.

But if there are demerit goods, there isn't an under-consumption of the good. There cannot be a perfect analysis surrounding a concept that doesn't truly make sense.

Hey guys,

In the 18 marker can you tell me how many marks I got?

Defined subsidy and MF

Gave the subsidy diagram

Gave the pros of subsidies and what they do to correct mf

Gave cons and how it may not always work incl opp cost to gov etc

Mentioned regulation

Gave a conclusion that subsidy would work with regulation.

Thoughts?

Anyone?

We obviously can't give a specific mark, as that's just a plan.

It is sound and complete though. If you explained everything well, you'd get high marks (provided you actually explained specifically how to corrects market failure).

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