OCR 2888: Economics in a European Context Watch

Veni_vidi
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#381
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#381
(Original post by steve2006)
june 05 was about tobacco and all about negative externalities.

So adapting questions from there

b) Analyse why the EU want to cut CO2 Emissions? [9]

2. Comment on the likely effectiveness of regulation, such as the EU's target to cut CO2 emissions to 140g/km by 2008, to correct market failure associated with negative externalities. [10]

Quick question this paper had a final 20 marker on tax harmonisation in the EU. I dont think its linked to the Car industry in anyway as its not mentioned at all in the case study. Is it worth learning it.?
i think it would be a good idea to have some understanding of the benefits and downsides of tax harmonisation in the EU, just in case
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manDarinka
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#382
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#382
is it true that due to relocating product outside EU both LRAS and AD shift in?
is it cz we look at it from the EU firms' point of view? or whose point of view?
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Alessandro_22
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#383
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#383
Reading the examiners report it seems that they are clearly stating the fact that no real background knowledge is needed for this topic and reciting stuff from the case study is going to get few marks same with history of the EU, what their looking for is economists who can use the tool kit from AS and look behind the issues in each extract like many of us have done on this thread and making good evaluative judgements.

I think where going to be fine guys aslong as we stick to the ol' trusty tool kit and keep with our economic essay structures. Also write loads without sounding like your blabbering, I'm going to make sure I write one point, per paragraph and move on no matter how tempted I am to just keep on writing a whole page for it.
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lizi100
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#384
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#384
the question about Czech invest and High value added services KEEPS coming up in this forum. i suggest if u want a greater understanding you take a brief look at the czechinvest website. its quite straight forward and will only take a couple of mins
it wants to attract things like financial services and research rather than depending on the car market.
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Alessandro_22
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#385
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(Original post by manDarinka)
is it true that due to relocating product outside EU both LRAS and AD shift in?
is it cz we look at it from the EU firms' point of view? or whose point of view?

EU and yeah although I don't think AD would shift straight away
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lizi100
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#386
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#386
I was confused why AD would shift inwards (saw it on that guys graphs) and i thought that it could be because the investment would be reduced in the EU, since firms are investing elsewhere. Also imports may increase becuase the cars are being manufactured outside the EU so need to be imported.
AD= C+ I(decreases)+G+ (X-M(increases))
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manDarinka
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#387
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#387
i agree
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Alessandro_22
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#388
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#388
Yeah I suppose in the LR after a time lag with investment gone jobs will be cut and those directly and indirectly would lose out meaning less consumption causing a shift in demand,
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wiseman01
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#389
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#389
(Original post by lizi100)
I was confused why AD would shift inwards (saw it on that guys graphs) and i thought that it could be because the investment would be reduced in the EU, since firms are investing elsewhere. Also imports may increase becuase the cars are being manufactured outside the EU so need to be imported.
AD= C+ I(decreases)+G+ (X-M(increases))
small point, exports fall, imports rise, therefore surely (X-M) decreases?
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boyz123
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#390
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#390
Does the tougher pollution standard necessarily lead to relocation of car plants outside the EU???
Anyone help !!!
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Alessandro_22
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#391
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#391
I think Lizi was saying the Imports increase, not the whole bracket
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Alessandro_22
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#392
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(Original post by boyz123)
Does the tougher pollution standard necessarily lead to relocation of car plants outside the EU???
Anyone help !!!
It depends how tough, it most likely will but then they do reap benefits from accession countries, they can also easily pass the cost on if where talking about taxes, it can vary and theirs a lot to talke about.

Also in the sr it may be bad but in the LR firms should realise they increase their international competivness
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wiseman01
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#393
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#393
Ok yeh.

I have a question which I'm getting slightly confused about.

Regulation - There is one method used by EU where the consequences are job losses, and the firms try to pass the increase costs to the consumers. Another method (or is it same?) where fixed costs change, but marginal costs are unaffected so there is no change in price for the consumers. What are these two different methods? I was thinking one is regulation/fines etc, the other is taxation, but what could then the EU tax in production?
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Pete_H
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#394
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#394
Anyone have a guide to using diagrams for extract 5? I'm guessing there will need to AD/AS diagrams.
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Alessandro_22
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#395
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The first is taxation where jobs as lost and the second where MC is unaffected is regulation, AC rises because of research and development, this however could lead to jobs cut aswell so not too sure.
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Alessandro_22
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#396
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(Original post by Pete_H)
Anyone have a guide to using diagrams for extract 5? I'm guessing there will need to AD/AS diagrams.
Off the top of my head think it was FDI so you can use a simple LRAS diagram or a PPF shifting out the curve
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Veni_vidi
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#397
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#397
i seriously can't wait till exams are over, i've never been this worried
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Alessandro_22
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#398
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#398
Amen
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Pete_H
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#399
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#399
(Original post by Alessandro_22)
Off the top of my head think it was FDI so you can use a simple LRAS diagram or a PPF shifting out the curve
Which AD/AS diagram would you draw, the Keynsian one or the neo-classical? Or doesn't it matter?
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helen_11
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#400
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#400
(Original post by Veni_vidi)
i seriously can't wait till exams are over, i've never been this worried
I agree with you there, especially after this one I can give a BIG sigh of relief. I feel like I'm reading my notes over and over again, but they're not going in..argh!
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