OCR F581 Markets in Action - 11 May 2015

Thanks for that

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10/18 , there is no reference (at least I couldn't see it) of L3 band 2. The evaluations are good but if introducing an alternative policy you should mention why it is better than subsidies.

10/18 , there is no reference (at least I couldn't see it) of L3 band 2. The evaluations are good but if introducing an alternative policy you should mention why it is better than subsidies.

How could i explain how information provsion is better than subsidies?

Depends on the case study, depends on the marke failure you are trying to solve.

the one hammings posted

How could i explain how information provsion is better than subsidies?

Can you not mention why the alternative policy would be worse?

Truthfully, you can -the want to see the comparison after all.

However, I don't see the reason in mentioning another policy if it's weaker. It'd feel like you were trying to fill the essay with whatever came in your mind.

Other than that though, there isn't really any problem.

Ohh ok, what policy do you think is stronger then?

Ohh ok, what policy do you think is stronger then?

Any policy will be rewarded, there is no restriction in the mark scheme or any previous examination (as far as I know) indicating provision of information as an inadequate alternative. It obviously depends on the type of market failure and the case for you to use it or not depends on your ability to find a way to introduce it as a better alternative. If you are unable to find one then don't use it. What policies to use? Depends on the extract and question, you can't really generalised. If it is congestion you could argue subsidising public transportation would be better than taxes since it improves the quality of substitutes and encourages people to switch but a tax with a PED inelastic doesn't really encourage modal switch unless a suitable alternative is in placed. That's just one way of many......

Any policy will be rewarded, there is no restriction in the mark scheme or any previous examination (as far as I know) indicating provision of information as an inadequate alternative. It obviously depends on the type of market failure and the case for you to use it or not depends on your ability to find a way to introduce it as a better alternative. If you are unable to find one then don't use it. What policies to use? Depends on the extract and question, you can't really generalised. If it is congestion you could argue subsidising public transportation would be better than taxes since it improves the quality of substitutes and encourages people to switch but a tax with a PED inelastic doesn't really encourage modal switch unless a suitable alternative is in placed. That's just one way of many......

Can someone send me a structure to answer 6 mark answers? also any predictions on what's going to come up?

Did you mean government provision before (ie not provision of information)? If so, it may be accepted when a question about subsidies is set.

Which policies are stronger definitely depends on the context -if the text mentions, for example, that regulation is very strict, you could say that reducing regulation is the best/good alternative.

There is, actually;

"Alternatives may also be comparedwith subsidies but do not creditinformation provision." (Mark Scheme- January 2013. If I recall correctly there have been similar statements before.)

Can someone send me a structure to answer 6 mark answers? also any predictions on what's going to come up?

Is that housing? If that's the case I would say provision of information won't solve the problem since the question (I think) was to do with shortage or lack of affordability. Provision of information can be used when relevant. I should have emphasised depending on the market failure. Examples of when to use it? Alcohol or tobacco consumption, health care, sugar consumption or any market failure where there is lack of information. Another situation in which I would not use it apart from housing is congestion.