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AQA A-level Economics new 7136 - 06, 13 & 19 Jun 2017 [Exam Discussion] Watch

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    (Original post by Mande1724)
    For a collusive oligopoly you can use a monopoly diagram. I would write one pargraph about the benefits e.g. dynamic efficiency and how it can lead to lower prices for consumers in the long run. The one I would write one paragraph about how a collusive oligoply leads to higher prices and restricted output, so the government may need to intervene(maybe by setting a maximum price).I dont know about a third point though.
    Under exam conditions I don't think is wise to do 3 points. 2 well developed points with diagrams will be more than enough.
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    can someone please please explain to me how to argue for the free market solving market failures in context based questions? how can signalling incentives and rationing solve market failures?
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    Whats the maximum mark someone can get in a 25 marker if they use no diagrams?
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    (Original post by amukaty)
    can someone please please explain to me how to argue for the free market solving market failures in context based questions? how can signalling incentives and rationing solve market failures?
    Depends on the context of the question. If it is to do with monopolies you could argue that under the free market the incentive function and supernormal profits currently made could encourage more firms to enter.
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    (Original post by Nadine_08)
    Whats the maximum mark someone can get in a 25 marker if they use no diagrams?
    The descriptor for levels doesn't indicate that a diagram is required but I can't think of how a 2nd year student wouldn't use a diagram. Usually good responses high L4/L5 will contain fully labelled diagrams that have been well explained and used to support your answer.
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    (Original post by keynes24)
    The descriptor for levels doesn't indicate that a diagram is required but I can't think of how a 2nd year student wouldn't use a diagram. Usually good responses high L4/L5 will contain fully labelled diagrams that have been well explained and used to support your answer.
    Just a curiosity-driven question that I hoped could possibly reassure me in the case of messing up/not knowing which diagram to use. I personally find them quite hard.

    Pleasantly surprised the descriptor doesn't mention them, though!
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    (Original post by keynes24)
    Depends on the context of the question. If it is to do with monopolies you could argue that under the free market the incentive function and supernormal profits currently made could encourage more firms to enter.
    for example in the june 2014 farming context unit 3 or the june 2013 supply and use of water context. if you could advise me on both that would be greatly appreciated
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    Talking about market forces the June 16 paper (paraphrased) was "assess the role of market forces and goverment interventions in encouraging responsible behaviour to the environment" I understand govt int, but what would market forces my probably wrong idea innovators of greener products coming onto the market, like creative destruction driving out incumbent firms who wont change their production to greener methods ? (Like as it may incentivise the existing firms to switch production methods to maintain market share?) Im not sure:/
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    (Original post by Nadine_08)
    Just a curiosity-driven question that I hoped could possibly reassure me in the case of messing up/not knowing which diagram to use. I personally find them quite hard.

    Pleasantly surprised the descriptor doesn't mention them, though!
    If you are concerned about it maybe you should try to plan different questions and ask for advice in the case in which you can't think of a diagram. Can't think of a question in which a diagram is not needed.
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    (Original post by amukaty)
    for example in the june 2014 farming context unit 3 or the june 2013 supply and use of water context. if you could advise me on both that would be greatly appreciated
    If you add the question I could try.
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    (Original post by physicsamor)
    Talking about market forces the June 16 paper (paraphrased) was "assess the role of market forces and goverment interventions in encouraging responsible behaviour to the environment" I understand govt int, but what would market forces my probably wrong idea innovators of greener products coming onto the market, like creative destruction driving out incumbent firms who wont change their production to greener methods ? (Like as it may incentivise the existing firms to switch production methods to maintain market share?) Im not sure:/
    Change in social norms (behavioural economics). Consumers are more aware and concerned about environmental issues and firms must take that into account. For example many airlines have added the choice for passengers to compensate for the carbon footprint created, a voluntary payment that could be made. This wasn't a government initiative but a voluntary scheme.
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    (Original post by keynes24)
    Change in social norms (behavioural economics). Consumers are more aware and concerned about environmental issues and firms must take that into account. For example many airlines have added the choice for passengers to compensate for the carbon footprint created, a voluntary payment that could be made. This wasn't a government initiative but a voluntary scheme.
    ohhh I see, thank you!
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    (Original post by keynes24)
    If you add the question I could try.
    so like the question in june 2014 "discuss wheter uk farming would benefit from greater responsivnesss from market forces"

    and

    in june 2013 " evaluate government policies that could be used to deal with the problems associated with supply and use of water.

    in both cases how would you use the free market as a point?
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    (Original post by amukaty)
    so like the question in june 2014 "discuss wheter uk farming would benefit from greater responsivnesss from market forces"

    and

    in june 2013 " evaluate government policies that could be used to deal with the problems associated with supply and use of water.

    in both cases how would you use the free market as a point?
    In the farming market there is excess supply, this will act as a signal for firms to reduce supply and ration the excess supply. They have an incentive to do this because when they reduce supply and charge a lower price they will be making higher profits due to the quantity demanded increasing.
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    (Original post by amukaty)
    so like the question in june 2014 "discuss wheter uk farming would benefit from greater responsivnesss from market forces"

    and

    in june 2013 " evaluate government policies that could be used to deal with the problems associated with supply and use of water.

    in both cases how would you use the free market as a point?
    How would the free market solve supply and use of water problems?
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    (Original post by amukaty)
    How would the free market solve supply and use of water problems?
    It would greatly depend on the context given ( these are unlikely questions to appear without supportive extracts.

    But the main points to be applied in any free market situation is the functions of prices achieving an allocativley efficient level of output through the exercise of consumer sovereignty (consumer choice), and greater competition and thus efficiency due to the profit motive in the free market which is not present under a state controlled monopoly, then this could lead to lower prices for consumers and greater allocative efficiency due to greater effective demand etc...

    Thats what i'd talk about anyway, i'm sure other people can include more stuff, but hope this helps!!
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    Hi,

    Just wondering if there are set standard essays for Macro that have a similar structure (for example, macroeconomic objectives?)

    Thanks!
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    With questions on market failure are we just answering them with AS knowledge or is there an a2 aspect (i mean not intervening into monopolies or oligopolies) but for example intervening to correct environmental market failure,is just using what we learnt last year?
    Also with questions on inequality what are the arguments that inequality is good? It really confuses me
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    (Original post by physicsamor)
    With questions on market failure are we just answering them with AS knowledge or is there an a2 aspect (i mean not intervening into monopolies or oligopolies) but for example intervening to correct environmental market failure,is just using what we learnt last year?
    Also with questions on inequality what are the arguments that inequality is good? It really confuses me
    I'm not sure what you learnt last year, but to correct environmental market failure, you could introduce pollution permits or give land etc property rights, to prevent the tragedy of the commons.

    Inequality may be good as it can give people an incentive to work hard as they want to earn well paid jobs, which could lead to increased productivity and efficiency.
 
 
 
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