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Economics Unit 2 Edexcel - Managing the UK economy Tuesday 19th May 2015 (PM) Watch

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    (Original post by Praveen101)
    Bro they made specific reference giving a country (The UK) and aspecficic time period (2008-2013) in the question, they cant award marks for something that was incorrect, they expect you to have basic knowledge about the UK economy, there's nothing more simple than the level of interest rates..
    So only 2 points will be awarded about consumer/business confidence and all other points invalid in your opinion?
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    (Original post by member1753327)
    So only 2 points will be awarded about consumer/business confidence and all other points invalid in your opinion?
    I'm not stating whats right bur rather whats wrong. interest rates did not affect the level of investment in the UK between 2008-2013, that isn't my opinion that is fact, it is a positive statement. They cant award marks for something thats incorrect
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    (Original post by Praveen101)
    I'm not stating whats right bur rather whats wrong. interest rates did not affect the level of investment in the UK between 2008-2013, that isn't my opinion that is fact, it is a positive statement. They cant award marks for something thats incorrect
    On that I perfectly agree on you, but do you think other factors will be marked, in my case an increase in national minimum wage and increased corporation tax? both of these factors can play in a recession for numerous reasons
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    (Original post by member1753327)
    On that I perfectly agree on you, but do you think other factors will be marked, in my case an increase in national minimum wage and increased corporation tax? both of these factors can play in a recession for numerous reasons
    as long as it makes sense and they cant disprove it, you might be able to get away with the NMW and the corporation tax but again it depends really because they cant give you marks for stuff that didnt actually happen because they cant expect you to know that in detail, but stuff like interest rates they expect you to atleast know the general level
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    Praveen101, didn't you read what I said. Examiners mark the correct points even if you said 3 factors. I said 2 factors why investment decreased WITHIN the period of 2008-2013 (specific dates). My 2 factors were interest rates and business confidence. If this was wrong fair enough, I will still be awarded with marks for business confidence. I then included another factor for why investment may have increased between 2008 and 2013, and it did, if you bloody read the question. Its not specific from 2008 to 2013. Risk perception could have been another factor for why it increased.

    Praveen101, are you a teacher, no you are not. I've asked teachers who are previous examiners and have seen the paper, they said I am correct. Even if my interest rate point is wrong (which it is), there still may be marks for it. However my cause of investment increasing and decreasing within the period 2008-13 would still give me 8/8.

    If you try and argue about why only investment decreased. Read the question again. It said change, and investment fluctuated. I have seen a similar question about this, and they allow marks for both increase and decrease as long as it is explained why.

    The question said cause of the CHANGE. It did not specify INCREASE OR DECREASE. Therefore you can say both. It is bloody obvious, i've seen a similar question like this and you could either talk about it increasing or decreasing or both. It did not say from 2008 to 2013. It said BETWEEN.

    However the 12 marker was different, that when you can say the overall trend.

    Think about it logically with an exam. Both the 8 marker and 12 marker said "With reference to Figure 1". They never award you marks with the same data reference, they may in this. However, they did not ask for the overall trend from 2008 to 2013. Therefore for the 12 marker, it would be logical to say the overall trend, then include the AS/AD diagram. However for the causes it would be logical to say both or just one, however by not using the same data reference. Otherwise the question would have said "increase or decrease", not change.
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    (Original post by Smash98)
    Praveen101, didn't you read what I said. Examiners mark the correct points even if you said 3 factors. I said 2 factors why investment decreased WITHIN the period of 2008-2013 (specific dates). My 2 factors were interest rates and business confidence. If this was wrong fair enough, I will still be awarded with marks for business confidence. I then included another factor for why investment may have increased between 2008 and 2013, and it did, if you bloody read the question. Its not specific from 2008 to 2013. Risk perception could have been another factor for why it increased.

    Praveen101, are you a teacher, no you are not. I've asked teachers who are previous examiners and have seen the paper, they said I am correct. Even if my interest rate point is wrong (which it is), there still may be marks for it. However my cause of investment increasing and decreasing within the period 2008-13 would still give me 8/8.

    If you try and argue about why only investment decreased. Read the question again. It said change, and investment fluctuated. I have seen a similar question about this, and they allow marks for both increase and decrease as long as it is explained why.

    The question said cause of the CHANGE. It did not specify INCREASE OR DECREASE. Therefore you can say both. It is bloody obvious, i've seen a similar question like this and you could either talk about it increasing or decreasing or both. It did not say from 2008 to 2013. It said BETWEEN.

    However the 12 marker was different, that when you can say the overall trend.

    Think about it logically with an exam. Both the 8 marker and 12 marker said "With reference to Figure 1". They never award you marks with the same data reference, they may in this. However, they did not ask for the overall trend from 2008 to 2013. Therefore for the 12 marker, it would be logical to say the overall trend, then include the AS/AD diagram. However for the causes it would be logical to say both or just one, however by not using the same data reference. Otherwise the question would have said "increase or decrease", not change.
    Even though the question asked about a change, I believe it made most sense to talk about a decrease in investment only since Figure 1 showed that the general trend was a decrease over the period. However, it would probably still be possible for you to pick up some marks , depending on the examiner.
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    Would changes in income get any marks?


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    (Original post by 98panashe)
    Would changes in income get any marks?


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    Probably not, since the question was asking about factors affecting investment and not consumption.
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    (Original post by medimidi)
    Probably not, since the question was asking about factors affecting investment and not consumption.
    Totally agree. Income affects consumption, not investment.
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    I said changes in income in the sense that as incomes fall, consumption a falls therefore less profits and investment?


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    2 reasons why investment decreased
    Incease in corporation tax
    Recession
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    (Original post by 98panashe)
    I said changes in income in the sense that as incomes fall, consumption a falls therefore less profits and investment?


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    Yes but remember, income is to do woth comsumer spending not investment
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    (Original post by Praveen101)
    Investment did not fall because of a change in interest rates! that is completely wrong in the context of the UK economy ! Interest rates were steady at 5% before the recession and only fell to 0.5% afterards therefore there was no relation between the level of interest rates and investment in tis particular incident ! it fell mainly because of the recession lowering business and consumer confidence! you are expected to know basic economic trends; i'm not even from the UK and i know this! You have to be specific to the UK because they said with reference to the figure (which related to the UK and gave a specific time period 0f 2008-2013 friend). You guys cant just regurgitate stuff you learn from the textbook and just apply them to everything, you have to apply them to a particular situation
    If there was information about the interest rates in the figures/information given saying they were 0.5% then I would definitely agree it would be wrong, but there was no information given regarding interest rates in the UK economy.

    I talked to my teacher about my answer for this question and she said it was correct.

    I guess we can't say for sure if marks will be awarded for that point, but what we can't say is 'Thats definitely wrong', as unless you're the examiner you don't know that, factually it is wrong as interest rates stayed at 0.5% since January 2009, but factually many things people say as answers to all the questions are wrong but examiners are mainly testing theory.

    Also, Interest rates can be said to have played a role from 2008-2013 in the UK. Prior to Jan 2009 ~ they were not 0.5% but considerably higher and then dropped, so the small fluctuation in this period (increase) could be related to the drop in interest rates.

    we'll just have to see
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    (Original post by AJC1997)
    If there was information about the interest rates in the figures/information given saying they were 0.5% then I would definitely agree it would be wrong, but there was no information given regarding interest rates in the UK economy.

    I talked to my teacher about my answer for this question and she said it was correct.

    I guess we can't say for sure if marks will be awarded for that point, but what we can't say is 'Thats definitely wrong', as unless you're the examiner you don't know that, factually it is wrong as interest rates stayed at 0.5% since January 2009, but factually many things people say as answers to all the questions are wrong but examiners are mainly testing theory.

    Also, Interest rates can be said to have played a role from 2008-2013 in the UK. Prior to Jan 2009 ~ they were not 0.5% but considerably higher and then dropped, so the small fluctuation in this period (increase) could be related to the drop in interest rates.

    we'll just have to see
    Do you remember the question about productivity? Do you think a rise in unemployment will be marked?
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    Yes because it said effects on the economy from what I can remember.
    (Original post by member1753327)
    Do you remember the question about productivity? Do you think a rise in unemployment will be marked?
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    If anyone is fretting about Q1 for the 30 marker, there is a mark scheme as they used the same question back in 2009.

    It was 'To what extent do demand-side policies cause conflict between the governments macroeconomic objectives?'

    and the mark scheme is here:
    http://qualifications.pearson.com/co...7_US021258.pdf

    It is the very one, right at the bottom
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    Hi, for the question about reasons why the UK was in a current account deficit. Was rapid economic growth a valid reason? (higher income therefore higher imports leading to a deficit).The thing is the Extract suggested the economy was in a recovery/recession so now i am unsure about my answer. Can someone help?
 
 
 
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