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AS economics AQA 25 marker.

Hey guys, I have a mock mock tomorrow. I was wondering, as my second point, is not strong enough for my essay, if anyone could advise me on being against government intervention. I cannot think of any strong points besides: "Inadequate information, conflicting objectives and administration costs" although I cannot develop on these points and I am therefore afraid of losing marks on this question.

Can anyone help me with it?

TLDR: help with disadvantages of gov intervention

Extract F (lines 3 and 4) states that "providing nutritional information and promoting healthy eating are not enough - the government needs to do more".

Using the data and your economic knowledge, assess the case for and against government intervention in the markets for food and drink to encourage a healthy diet.

(edited 9 years ago)

Reply 1

Holdaboss

The points you have are good and can be developed.

Inadequate information: This may lead to the government implementing taxes and offering subsidies to the wrong industries/markets, this leads to a misallocation of resources and a distorted market price which doesn't reflect true supply and demand. This then in turn can lead to firms failing due to a lack of true demand for a product/service. Asymmetric information may also lead to the government making wrong decisions. Maybe draw a diagram showing a distorted market price based on the government subsidising the wrong industry?

If you're not already, just try to think of every single aspect, no matter how small, that will be affected by for example inadequate information. I think delving too deep into too many different disadvantages does not reflect a good answer. 3 well developed disadvantages with a couple of diagrams is sufficient enough. As well as balanced advantages and good evaluation.

If you need any more help developing other points feel free to let me know.

Reply 2

Curtis1234

Thanks for the response Holdaboss. You seem very knowledgeable on the subject :smile:

To be honest, we are told to only do 1 point and then fully analyse/evaluate it.

I'm not even sure if I have done my for government intervention point right. Is it okay if you could take a look at it?

Reply 3

Holdaboss

Original post by Curtis1234

Thanks for the response Holdaboss. You seem very knowledgeable on the subject :smile:

Sure if you want.

I'm only an A2 student but I found the 25 marker probably my strongest part of the exam last year.

Reply 4

Curtis1234

Original post by Holdaboss

Sure if you want.

I'm only an A2 student but I found the 25 marker probably my strongest part of the exam last year.

http://gyazo.com/095cefcfa78a16e93e15a8806a283c9c

http://gyazo.com/0cd2e9befe86088830605e4db4b8f421

http://gyazo.com/489166177465924da77b0b50386a32d9

I knwo its too lonng, but it is out first attempt at one.

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Reply 5

Holdaboss

Original post by Curtis1234

Have you been taught the KAAE method?

You clearly have a good understanding but I think you need to be a bit more efficient in the way you express your points.

Your introduction merely needs to be brief, I'd literally define government intervention and define a couple of methods of intervention (main ones; subsidies and taxes.)

Then move straight on. The first thing you should do in an 'assess the cases for and against' question is say your advantage or disadvantage at the start of your paragraph, rather than explain the concepts first.

So I'd say, 'One case for the use of government intervention in the market for food and drinks, is that allows the government to use taxation to reduce the consumption of demerit goods such as fast food.'

Straight up saying this will tell whoever's marking your essay what they need to here. Then once you've made your point expand by saying something like: 'the government can implement taxes onto demerit goods which will raise the overall market price of the good, thus taking into account the marginal social costs and negative externalities such as obesity leading to health problems and higher labour absence. This is an advantage because it means consumers will look for healthier alternatives that are cheaper, creating more positive externalities in society.' Then obviously draw the diagram you've drawn and expand on some more points.

Then maybe I'd turn the point on it's head straight away and say ' however if the government have inadequate information, they may implement high taxation on the wrong goods and distort the market' - even though this is unlikely to happen it's still worth mentioning as it's in the syllabus.

Overall your essay as good knowledge, but you need more clear advantages and disadvantages.

Use KAAE - Knowledge, application, analysis and evaluation. Make a plan of your essay. List the points you want to talk about and analyse and evaluate each one separately. You clearly have the knowledge you just need practise with 25 markers and the best way to start is make a good plan and have a good structure!

EDIT: After the point, analysis and evaulation on taxation. Do exactly the same for subsidising healthy foods and say about the social benefits and positive externalities, then maybe talk about legislation that restricts food being too unhealthy. Then make points on disadvantages that you stated before, imperfect information, the costs of implementation, market effects and effects on firms.

(edited 9 years ago)

Reply 6

Curtis1234

This is the method we have to learn. I have written down what you have suggested but I'm not sure my teacher would be on board using a different method. I have to include all the analysis points along the way.

Point

Explain
-Because
-Leads to
-Therefore

Evidence

Evaluate (strength and weaknesses of points)

then do it again for against gov intervention.

I struggle to BLT an against argument.

Reply 7

Curtis1234

With your point on that consumers will find alternatives. I guess I can evaluate that point as it depends on the elasticity of the product. Ie. inelastic = likely to still consume
elastic = find alternatives as mentioned