AQA economics results + discussion thread

I would definitely agree with that. Units 1 and 2 are sooo much easier as resits...

Reply 82

ok what is the rationing/allocative function of prices? I ve looked in the Philp ALlan guides, but it's quite confusing the way they have explained it. :smile:

Reply 83

Citizen_Keynes

Right. Allocative function: Prices indicate to businesses what should be produced in order to gain greater profit. Therefore, businesses produce the higher-priced goods (priced so because the consumers are demanding them), thereby creating allocative efficiency (the goods that the consumers wanted are being produced).

Rationing function: If a good is scarce or the factors of production that go in to building it are scarce, the supply of that good will be restriced, leading to a higher price. This means that not as many people can consume this good (due to the higher prices). The price has thereby rationed the amount of the scarce good that is being consumed.

That answer it?

Reply 84

Citizen_Keynes

hey thanks for that, the way you ve explained it is a lot more simplar that the guides. + rep coming up :smile:

Reply 85

i was talking about allocative efficency in class today and my teacher said that i shouldn't worry about this until A2, is this true?

Reply 86

NO.

I used the term 'allocative efficiency' in pretty much all of my essays somehow. It's how goods are allocated in the market, and when talking about market failure (which comes up EVERY single year literally), there is always a misallocation of resources which leads to allocative inefficiency

Reply 87

Legend Killer

i thought so, he said that i was reading too much into it. hmm. so is allocative ineffiency, producing goods that consumers do not actually want. what is it when resources are mis-allocated?

Reply 88

hmm. so is allocative ineffiency, producing goods that consumers do not actually want. what is it when resources are mis-allocated?

No, allocative inefficiency occurs when goods are over- or under- produced. For example in monopoly markets and merit goods. It is producing more (or less) than firms are willing to supply.

Reply 89

Does anyone have a list of the diagrams we need to know at A2 level? (both macro and micro)

Any help would be appreciated. :biggrin:

Reply 90

I have a list for Unit 5...

*searches frantically*

Here it is:

1. Short Run Profit Maximisation
2. Long Run Average Cost Curve
3. Perfect Competition Model
4. Kinked Demand Curve Model
5. Monopoly Equilibrium illustrating Deadweight Loss
6. Externalities Diagrams (MSC and MPC lines) for both positive and negative
7. Supply of Labour (Individual)
8. Supply of Labour (Firm)
9. Monopsonistic Labour Market Equilibrium
10. Trade Union Diagram
11. Bilateral Monopoly in the Labour Market (Monopsonist vs Trade Union)
12. Lorenz Curve
13. Price Discrimination Diagrams

Reply 91

For Unit 6...the Phillip Allan guide only has:

1. Classical Unemployment Diagram
2. Keynesian Inverted-L Supply Curve
3. LRAS relating to NAIRU
4. Short Run Phillips Curve
5. Long Run Phillips Curve

From Unit 2 I suppose you will need to remember the Cost Pull and Demand Push diagrams as well as other AD/AS analyses. The PPF is another obvious one. There are other diagrams in my other revision guide (such as Keynesian cross diagrams, Modigliani's life cycle etc.) but I don't think these come up in AQA Unit 6.

Reply 92

kates:)

Amazing RJA!
Thanks x

Reply 93

WOW. thanks so much mate! rep for you :biggrin:

Reply 94

kates:)

Just of out interest, how far is everyone with their ECN revision?
I've almost done Unit 5 and am starting Unit 6 today. However, knowing I only need 67/90 in both to achieve an A makes me kinda blasé about revising!

Reply 95

prash_s90

im still half way through unit 5...im soo far behinddd

Reply 96

kates:)

Don't get blasé about that! Units 5 and 6 are difficult! I only need 45 on each, and I'm still putting the work in...

Seriously, 67 is not that easy to get!

Reply 97

67/90 isn't that easy you know!

I'm kinda going through all the diagrams in unit 5 etc. Unit 6 isn't that bad actually, jus needa brush up on some concepts i.e exchange rates/balance of payments and learn philips curve diagrams etc.

I need around 57/90 and still need to put in a lot of work.

Reply 98