James Watkins
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Could someone please clarify the answer to the 20 marker that was in my Economics paper;
It was about sugary drinks, and how putting an indirect tax on sugary drinks will tackle market failure.

I just want to be certain about all the information I did/needed to include within my answer
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wolfie3
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(Original post by James Watkins)
Could someone please clarify the answer to the 20 marker that was in my Economics paper;
It was about sugary drinks, and how putting an indirect tax on sugary drinks will tackle market failure.

I just want to be certain about all the information I did/needed to include within my answer
Well you just talk about taxes and regulation as govt intervention and evaluate them (PED for taxes, regulation wasnt fully successful)

Then talk about the good things why you should regulate e.g. reduce negative externalities

Then govt failure possibility e.g. regulating e cigs mean people still consume cigs (i mumbled for this ngl)

And then a judgement

Pls tell me this is right?
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James Watkins
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(Original post by wolfie3)
Well you just talk about taxes and regulation as govt intervention and evaluate them (PED for taxes, regulation wasnt fully successful)

Then talk about the good things why you should regulate e.g. reduce negative externalities

Then govt failure possibility e.g. regulating e cigs mean people still consume cigs (i mumbled for this ngl)

And then a judgement

Pls tell me this is right?
Yeah they're the lines I went along. I talked about the fact that producers wouldn't want to produce the sugary drinks as the costs of production would've gone up if there's a tax put on it.
I also shifted the supply curve to the left, inwards, showing the producers don't want to produce as much, and also that the price has gone up.

Does that sound alright to you?
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GTHargs
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It was clearly hinting at behavioural economics too. Also, you have to always say that it is hard for the government because they don't know how much tax to set and it may result in government failure as indirect taxes are regressive. Taxes often result in black markets too and you should have mentioned the social costs of that.
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James Watkins
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(Original post by GTHargs)
It was clearly hinting at behavioural economics too. Also, you have to always say that it is hard for the government because they don't know how much tax to set and it may result in government failure as indirect taxes are regressive. Taxes often result in black markets too and you should have mentioned the social costs of that.
Yes, I talked about the MPC and the MSC and the effects they have.

Is that what you mean or not?
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wolfie3
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(Original post by James Watkins)
Yeah they're the lines I went along. I talked about the fact that producers wouldn't want to produce the sugary drinks as the costs of production would've gone up if there's a tax put on it.
I also shifted the supply curve to the left, inwards, showing the producers don't want to produce as much, and also that the price has gone up.

Does that sound alright to you?
Yeah that sounds good, I think my 20 marker was my worst question because of timing but hopefully I got 15
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wolfie3
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(Original post by GTHargs)
It was clearly hinting at behavioural economics too. Also, you have to always say that it is hard for the government because they don't know how much tax to set and it may result in government failure as indirect taxes are regressive. Taxes often result in black markets too and you should have mentioned the social costs of that.
Behavioural economics? You're baffed
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James Watkins
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(Original post by wolfie3)
Yeah that sounds good, I think my 20 marker was my worst question because of timing but hopefully I got 15
If you remember, don't worry if you don't, do you know what curve you shift for the ten marker and the talk through that you're meant to do?
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wolfie3
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(Original post by James Watkins)
If you remember, don't worry if you don't, do you know what curve you shift for the ten marker and the talk through that you're meant to do?
I didnt even draw a curve lmaoo, I think you would have shown demand shifting left to show people demanding less of cigs but i didnt think its needed
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GTHargs
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(Original post by James Watkins)
Yes, I talked about the MPC and the MSC and the effects they have.

Is that what you mean or not?
For the tax yes, basically, it is hard for governments to estimate external costs
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James Watkins
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Can someone just quickly give me some clarification of the 10 marker please, and what you have to write to get the AO3 marks
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James Watkins
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(Original post by wolfie3)
I didnt even draw a curve lmaoo, I think you would have shown demand shifting left to show people demanding less of cigs but i didnt think its needed

You couldn't have got more than 3 then, because it stated 'with the aid of a diagram(s)' so you got a fatal error on that question then.
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RevisionGuide
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(Original post by James Watkins)
Could someone please clarify the answer to the 20 marker that was in my Economics paper;
It was about sugary drinks, and how putting an indirect tax on sugary drinks will tackle market failure.

I just want to be certain about all the information I did/needed to include within my answer
-Impacts of the tax-will affect low income families most
-diagram to show consumer and producer tax incidence
Evaluation
-Size of tax implemented is significant
-Deadweight lost of imposing the tax (represent on a market failure diagram)
Judgment
-Short run and long run implications of tax (inelastic in short run?)
-May not work at all depending on PED-however counter by saying that revenue is generated for the government which can be used to correct market failure that derives from sugary drink consumption.
-Other methods of intervention such as information provision? evaluate
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wolfie3
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(Original post by James Watkins)
You couldn't have got more than 3 then, because it stated 'with the aid of a diagram(s)' so you got a fatal error on that question then.
Wait is this the rational behaviour question?
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James Watkins
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(Original post by RevisionGuide)
-Impacts of the tax-will affect low income families most
-diagram to show consumer and producer tax incidence
Evaluation
-Size of tax implemented is significant
-Deadweight lost of imposing the tax (represent on a market failure diagram)
Judgment
-Short run and long run implications of tax (inelastic in short run?)
-May not work at all depending on PED-however counter by saying that revenue is generated for the government which can be used to correct market failure that derives from sugary drink consumption.
-Other methods of intervention such as information provision? evaluate
However points?
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James Watkins
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(Original post by wolfie3)
Wait is this the rational behaviour question?

The 10 marker
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wolfie3
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(Original post by James Watkins)
The 10 marker
The 10 marker was the rational behaviour question and you couldnt draw a suitable diagram, I think you're talking about the revenue question im pretty sure thats the only one you absolutely needed a diagram for
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James Watkins
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(Original post by wolfie3)
The 10 marker was the rational behaviour question and you couldnt draw a suitable diagram, I think you're talking about the revenue question im pretty sure thats the only one you absolutely needed a diagram for
What board are you on? I'm talking about OCR
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Be.a.trix
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hey, does anyone here do IAL economics
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Tpw123
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How difficult did everyone find the exam
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