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

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    Hi everyone, I did context 2 on the gender pay gap and the essay 2 on poverty.

    For the first 25 marker I wrote about how trade unions/ the NMW and progressive taxation and benefits could be used to reduce the gao in the economy and how successful each policy was.

    For the second 25 marker I wrote about how the trickle down effect/economic growth could be used by the market forces to reduce poverty, and the NMW/progressive taxation and benefits for government intervention,

    Does this sound about right on the whole? Found the paper fairly good.
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    (Original post by amuir720)
    For the context 1 9 marker I talked about variable costs rising because of wages and how they have to travel all the country etc, and explained how this will reduce the abnormal profits. But on my diagram I didn't shift the ATC/MC curves at all, I only showed reducing abnormal profit by simply moving their equilibrium further to the right. Anyone know if this could still work or whether my diagram just won't support it?
    I think my diagram is similar to yours (I mentioned rising costs but for a different reason). I hope our diagrams are valid!
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    [QUOTE=Kaasi;71922080]
    (Original post by ademjh)
    Shut up you stuck up prick



    You're just mad because you are an insolent self absorbed virgin
    You definitely got bullied at school


    Posted from TSR Mobile
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    Can anyone tell me what is the answer for the 4 marker on context 1? Thank you!!
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    I'm such an idiot for the sugary drink 15 marker I just did a diagram with demand and supply and not MSB and MPB. Anyone know many marks I will lose from this?
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    (Original post by bkjsbcs)
    Yh talked about how it leads to static efficincy and prices are driven down and as a result supernormal profits turn into normal profit in the LR


    Wb the 25 marker?
    I went over the advantages and disadvantages of each market structure?

    Didn't really talk much about types of regulation but I don't think you were meant to.
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    (Original post by coatsoft)
    I'm such an idiot for the sugary drink 15 marker I just did a diagram with demand and supply and not MSB and MPB. Anyone know many marks I will lose from this?
    I wouldn't worry too much as the main focus was explaining how overconsumption occurred as long as your diagram helped to explain this you should be good. Yes the mpb would have been more suitable but as long as you justified your points you should be okay 😊
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    (Original post by physicsamor)
    I wouldn't worry too much as the main focus was explaining how overconsumption occurred as long as your diagram helped to explain this you should be good. Yes the mpb would have been more suitable but as long as you justified your points you should be okay 😊
    I'm so annoyed I was going to change it but decided not to. Thanks for the reassurance though!
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    Was bar chart revenue or number of workers in context 1? Thanks
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    (Original post by coatsoft)
    I'm such an idiot for the sugary drink 15 marker I just did a diagram with demand and supply and not MSB and MPB. Anyone know many marks I will lose from this?
    It doesn't ask for a diagram, so it's possible to still get 15 marks without one
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    Also; for the 25 marker in Essay 3, do you need to talk about more than one policy?

    If you were to:

    - Acknowledge sugary drinks as a demerit good, resulting from imperfect information, which is information failure
    - Use a diagram to show the effects of this demerit good in the free market (above the socially optimal level of output, where MSB=MSC)
    - Define a tax, and refer to how it leftward shifts the S curve
    - Use a diagram to show just that, whilst also showing the total tax paid, the total tax paid by the consumer, the total tax paid by the producer
    - The advantages of tax (cost of negative externalities is internalised in the price of the good, so demand is reduced; revenue can be used to offset the negative externalities)
    - The disadvantages of tax (increases cost of production reducing international competitiveness which may cause firms to relocate, doesn't work if demand is price inelastic, just because externalities can be offset does not mean they will, difficult to put monetary value on cost of the negative externalities)
    - Mentioning how it depends on the price elasticity of demand, and how sugary drinks are more price elastic admittedly; but it does not mean they cannot switch to a cheaper sugary drink

    How would this fare?

    Cheers
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    Great exam

    Context 2;

    2 marker- 69.1% something like that or 63.9% can't remember exactly

    4 marker- easy just showing how the pay gap got smaller by £445 from 2000 to 2015

    9 marker- define key terms, demand for labour derived from MRP in perfectly competitive labour markets. Construction for example men may have more natural strength and can lift heavier objects so they can produce more i.e. marginal product higher than women so higher MRP for men than women here. Though imperfections do exist so women may also gain less due to discrimination. Also they may supply their labour less or not as available due to lifestyle commitments and thus men have higher marginal revenue so higher wages.

    25 marker- define key terms. Min wage- increase earnings for women in employment, more equal dist of income. Weak- q of lab falls and even more so if demand for labour is wage elastic. Strong- can't remember what I said.

    2nd point- imperfections such as discrimination often evident in labour market so womens MRP is lower than their true MRP so increase laws aimed at preventing this to bring MRP up to true MKT mrp.

    Weak- wage gap fallen by £445 over 15 years so not as relevant and equal pay act prevents this. Strong- 32% women claim they are paid less than men according to career build.co.uk

    Conclusion- other policies, leave to market forces etc.

    Double essay:
    define terms

    de-merit good diagram with the MPB greater than MSB

    Reasons- consumers imperf info on lr private costs

    Firms ignore externalities so over provide and we demand at that q

    Some sugary drinks have elasticities in the region of 0.3-.06 due to addictive nature so even if price increases to attempt to reduce demand demand will still be at an over consumption as demand is price inelastic.

    Facts- NHS 16.1 billion costs obesity. 20% obese population

    25 marker:

    Define terms

    Tax- internalise market failure etc due to fall in supply from tax reduced quantity back to optimum

    Weak- demand for goods may be inelastic so fall is unrealistic. Strong is tax rev is used for subsidising healthy alternatives.

    2nd point- prof max firms e.g apple earn large supernormal profits e.g 54.1 billion in 2015 and evade tax e.g relocating to Ireland. Tax may not have such an affect on these firms so gov provision is necessary. Gov provision diagram.

    Weak- orgs in free market may be a charity or attempt to raise awareness of risks so produce at q where mc=mr so gov provision unnecessary. Strong- can't remember

    Conclsuion- evaluated args. Behavioural economics also relevant e.g nudge policies such as mandating choice etc.
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    Need opinions on this- poverty essay

    The arguement I made for market forces reducing poverty was that if people are unemployed demand for good will reduce as they have less income to spend, this leads to a shift to the left of demand, resulting in a reduced price and thus, a reduced cost of standard of living to get out of poverty. + diagram.
    My evaluation was that there are not enough people in poverty to significantly effect price, means it works to a very limited extent and government policies are needed. Then spent majority of the time valuation government policies such as welfare.

    ?
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    For context A 9 marker, do you think you could make the argument that in the long run that there average costs may fall due to economies of scale and thus profits rise?
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    (Original post by Remaine)
    Also; for the 25 marker in Essay 3, do you need to talk about more than one policy?

    If you were to:

    - Acknowledge sugary drinks as a demerit good, resulting from imperfect information, which is information failure
    - Use a diagram to show the effects of this demerit good in the free market (above the socially optimal level of output, where MSB=MSC)
    - Define a tax, and refer to how it leftward shifts the S curve
    - Use a diagram to show just that, whilst also showing the total tax paid, the total tax paid by the consumer, the total tax paid by the producer
    - The advantages of tax (cost of negative externalities is internalised in the price of the good, so demand is reduced; revenue can be used to offset the negative externalities)
    - The disadvantages of tax (increases cost of production reducing international competitiveness which may cause firms to relocate, doesn't work if demand is price inelastic, just because externalities can be offset does not mean they will, difficult to put monetary value on cost of the negative externalities)
    - Mentioning how it depends on the price elasticity of demand, and how sugary drinks are more price elastic admittedly; but it does not mean they cannot switch to a cheaper sugary drink

    How would this fare?

    Cheers
    That's more or less what I did I think you went into slightly more detail with some of your points like damn!!. I talked about behav econ policies as an alternative and then talked about goverment failure and if we should care, rushed the conclusion
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    (Original post by Hjjhgnnh)
    Was bar chart revenue or number of workers in context 1? Thanks

    anyone please?
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    (Original post by Tommysmalley)
    Need opinions on this- poverty essay

    The arguement I made for market forces reducing poverty was that if people are unemployed demand for good will reduce as they have less income to spend, this leads to a shift to the left of demand, resulting in a reduced price and thus, a reduced cost of standard of living to get out of poverty. + diagram.
    My evaluation was that there are not enough people in poverty to significantly effect price, means it works to a very limited extent and government policies are needed. Then spent majority of the time valuation government policies such as welfare.

    ?
    It doesn't sound convincing to me. For market forces I would have argue the case for inequality/trickle down effect or preventing government failure. Regardless of what you written what's important is the chain of reasoning and the depth of analysis.
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    (Original post by coatsoft)
    I'm so annoyed I was going to change it but decided not to. Thanks for the reassurance though!
    I think I drew my diagram wrongish but hopefully I made some valid points
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    For the first context 9 marker it said in extract B that the firm would have to reduce costs for the universal system would it be wrong to argue that they would actually operate at MR=AC from the previous place of where MC=MR so that they actually increase quantity earn normal profits and lower costs??
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    (Original post by junky27)
    Great exam

    Context 2;

    2 marker- 69.1% something like that or 63.9% can't remember exactly

    4 marker- easy just showing how the pay gap got smaller by £445 from 2000 to 2015

    9 marker- define key terms, demand for labour derived from MRP in perfectly competitive labour markets. Construction for example men may have more natural strength and can lift heavier objects so they can produce more i.e. marginal product higher than women so higher MRP for men than women here. Though imperfections do exist so women may also gain less due to discrimination. Also they may supply their labour less or not as available due to lifestyle commitments and thus men have higher marginal revenue so higher wages.

    25 marker- define key terms. Min wage- increase earnings for women in employment, more equal dist of income. Weak- q of lab falls and even more so if demand for labour is wage elastic. Strong- can't remember what I said.

    2nd point- imperfections such as discrimination often evident in labour market so womens MRP is lower than their true MRP so increase laws aimed at preventing this to bring MRP up to true MKT mrp.

    Weak- wage gap fallen by £445 over 15 years so not as relevant and equal pay act prevents this. Strong- 32% women claim they are paid less than men according to career build.co.uk

    Conclusion- other policies, leave to market forces etc.

    Double essay:
    define terms

    de-merit good diagram with the MPB greater than MSB

    Reasons- consumers imperf info on lr private costs

    Firms ignore externalities so over provide and we demand at that q

    Some sugary drinks have elasticities in the region of 0.3-.06 due to addictive nature so even if price increases to attempt to reduce demand demand will still be at an over consumption as demand is price inelastic.

    Facts- NHS 16.1 billion costs obesity. 20% obese population

    25 marker:

    Define terms

    Tax- internalise market failure etc due to fall in supply from tax reduced quantity back to optimum

    Weak- demand for goods may be inelastic so fall is unrealistic. Strong is tax rev is used for subsidising healthy alternatives.

    2nd point- prof max firms e.g apple earn large supernormal profits e.g 54.1 billion in 2015 and evade tax e.g relocating to Ireland. Tax may not have such an affect on these firms so gov provision is necessary. Gov provision diagram.

    Weak- orgs in free market may be a charity or attempt to raise awareness of risks so produce at q where mc=mr so gov provision unnecessary. Strong- can't remember

    Conclsuion- evaluated args. Behavioural economics also relevant e.g nudge policies such as mandating choice etc.
    For the 15 Mark i wrote similar things only i talked about the people not realising external costs and private costs on health is that wrong?

    Your application and context is really strong though woah!!

    For my 25 marker I talked a lot on behavioural econ as well as a tax so I hope it's not too bad xD
 
 
 
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