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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 physicsamor)
    tbh I don't think anyone is ready , I certainly am not. I disagree I think you have the knowledge, I think your point on anchoring was good (I mean that's what I would have explained, maybe I am just as bad as this question ) just maybe go to say that it is this anchor or default choice that makes a consumer only to spend on x item, because it is the first and only information they are likely to consider despite being offered alternatives.
    Oh okay thank you! :yy:
    I'm going to do the first 25 marker about profit maximisation tonight and i'll put it up tomorrow hopefully, if you want to do that one too?
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    (Original post by BintM)
    No i appreciate it, thanks. Could you explain the significant change in interest rate point please?
    Did my points make sense? :/



    I feel like i didn't answer the question, i'm so not ready
    Your points are okay, you just need to work on the way that you word them. You should try to focus on keeping everything to the point and nothing to the point.

    Let's just pull out some examples from your essay:

    In your introduction, you defined the two key terms (anchoring and loss aversion) which is a great introduction. I would probably change your anchoring definition to say that Anchoring is a decision making bias, cognitive bias is way too vague.

    You could probably also go onto say something about how both loss aversion and anchoring may result in individuals making irrational decisions.

    In your first issue, you talked about how "People tend to compare and contrast only a limited set of items and this predictable bias allows an individual to make choices to suit their needs best."


    I think what you were really trying to say here was that individuals decisions may be biased/anchored based on the choice architecture that they are presented with.

    i.e. living in a city where there is only one accessible bank may disincentive a consumer to change blah blah blah.

    Okay, we may aswell just look at the rest of your point. Your example was that when people go to restaurants, a menu is going to contain different foods at different prices. Some expensive, some cheap.

    (Pretty sure you messed up what you were trying to say there and that your point was that in restaurants, menus tend to feature the most expensive items at the top / front pages etc etc)

    "In this way a consumer saves by choosing the 'cheaper' option but does not miss out on economic welfare gained by choosing the 'middle item'. In other words, when estimating a value we often anchor upon a value we have seen previously as it is the safer option for a consumer when deciding how to spend or save income."

    Honestly you've got me a little confused here again.

    You just need to try and build a logical thinking process.
    i.e.

    1. Guy wants to buy a car.
    2. Car too expensive.
    3. Price of car goes down as the car is now on sale.
    4. Guy buys car without realizing that the car is worthless.
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    (Original post by BintM)
    Oh okay thank you! :yy:
    I'm going to do the first 25 marker about profit maximisation tonight and i'll put it up tomorrow hopefully, if you want to do that one too?
    yeah ill do it too!
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    (Original post by luciferhf)
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    Okay thanks :yy:
    Idk how im going to sit this exam

    (Original post by physicsamor)
    yeah ill do it too!
    Great for tomorrow?
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    Anyone got any model answers to essay's ?
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    (Original post by Deavk006)
    Anyone got any model answers to essay's ?
    I got the ones from economicshelp
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    (Original post by BintM)
    Okay thanks :yy:
    Idk how im going to sit this exam



    Great for tomorrow?
    yeah for tomorrow
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    (Original post by luciferhf)
    Entrepreneurs tend to be rewarded with profits for taking risks.
    Retained profits can be used to reinvested back into the firm or into research and development if the firm is dynamically efficient.
    Thanks
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    (Original post by physicsamor)
    Just think of the functions of profits in markets in terms of wages, dividends, investment survival.
    I would then go on to say however profit maximization is not always a key objective of firms they may choose to sales maximise, revenue maximise, cost minimise, profit satsifice and think about the divorce of ownership of control
    Thanks
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    Could you possibly send them to me?
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    (Original post by BintM)
    I got the ones from economicshelp
    Could you send me them please?
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    (Original post by BintM)
    I think its the exchange rate to buy the same quantity of products in different countries, not sure though.
    the PPP is the quantity of any currency needed to buy the same representative basket of goods and services that US$1 can buy. Hope this helps
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    Anybody got the second set on specimen papers?
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    There was this essay from the old spec (im going to simplify the question) evaluate the view that the government should never intervene in an oligopoly that is cooperating or colluding. I understand that legal collusion such as cooperation has benefits to consumers with r&d and like price fixing needsto be stopped but I don't actually understand how to answer this
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    (Original post by physicsamor)
    There was this essay from the old spec (im going to simplify the question) evaluate the view that the government should never intervene in an oligopoly that is cooperating or colluding. I understand that legal collusion such as cooperation has benefits to consumers with r&d and like price fixing needsto be stopped but I don't actually understand how to answer this
    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.
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    (Original post by physicsamor)
    There was this essay from the old spec (im going to simplify the question) evaluate the view that the government should never intervene in an oligopoly that is cooperating or colluding. I understand that legal collusion such as cooperation has benefits to consumers with r&d and like price fixing needsto be stopped but I don't actually understand how to answer this
    Argue in favour and against government intervention
    E.g. first analysis: oligopolies engage in collusive agreements like price fixing and how the government could stop it or prevent it (CMA, fines............)
    Possibility of government failure from intervention
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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.
    Ah I see I think I was just confusing myself, thank you gonna try and write it!
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    (Original post by keynes24)
    Argue in favour and against government intervention
    E.g. first analysis: oligopolies engage in collusive agreements like price fixing and how the government could stop it or prevent it (CMA, fines............)
    Possibility of government failure from intervention
    Thank you, thats a really helpful structure 😊
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    (Original post by physicsamor)
    Ah I see I think I was just confusing myself, thank you gonna try and write it!
    Are you deliberately only choosing the harder 25 mark questions? Theres a much easier one about efficiency on the same paper.
 
 
 
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