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Edexcel A-level Economics(A) Paper 2 12th June 2018 [Exam Discussion]

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Original post by Failedalevels1
Can someone explain to me why it’s not 125% I genuinely don’t understand how you can get any other answer


Im pretty sure it’s 125%, 4.0% divided by 3.2% x 100 is how you work out the price index, im kicking myself tho bc I didn’t know if I was supposed to times by a 100 or not and I didn’t :frown:
Original post by J500
Could micro finance be considered a role of the financial sector? (15 marker)


Microfinance is an IMF/World Bank scheme. Not linked to financial sector which is all about spending saving etc...
Original post by Rubel Ahmed
Development will definitely come up. According to my Economics teacher, it's because all the examiners are socialists.


Well they aint wrong arent they
Original post by Mefan Stolyneux
My reasoning was that if 2015 is the base year at 100 then the 4% increase in 2016 makes it 104. What did you do?


Same. I got 104 and I had to restare at it.
I got 104 as well
Original post by Mefan Stolyneux
My reasoning was that if 2015 is the base year at 100 then the 4% increase in 2016 makes it 104. What did you do?


I read it as if it had gone from 3.2% to 4% so there had been a 0.8% increase and because 3.2% was the base year I divide it by that to find out the percentage increase 25% so it was a 125% increase
Original post by hsbsbsh
1) facilitates saving-increase in savings gap- harrad domar analysis
2) lends to firms and consumers-promotes businesses-increased growth
3)purchuse stocks in futures market- lack of price volatility
i evaluated buy discussing diffrent market failures in financial sector e.g. externalities and market bubbles
can anyone confirm if this is right?


it was difficult for me because it was on a developig economy. So i didnt use that as evaluation but talked about the failures of the financial sector causing a savings gap etc
Original post by matt19999
Microfinance is an IMF/World Bank scheme. Not linked to financial sector which is all about spending saving etc...



Fake news
Reply 68
Guys for 15 marker i wrote that financial sector commercial banks can lend money cheaply so consumers borrow more, Ad rises and growth occurs

And that financial sector mainly banks are protected from failing, so they will unergo riskier decisions such as borrowing to risky consumers that will default on loans, leading to government bailing them out, and there is opportunity cost as this cash could be used to finance a policy to encourage growth and development..

Is that right
For the government policies questions where you had to give two but they couldn’t be protectionism I wrote
Supply side policy of NMW
and transfer pricing
Do you think they were wrong
For the 2 macro policies could you say 1) stronger trade unions and a higher minimum wage. 2) increased regulations on TNCs to limit things like tax evasion. I couldn't think of anything else to write
Original post by james_arthur_1
For the 2 macro policies could you say 1) stronger trade unions and a higher minimum wage. 2) increased regulations on TNCs to limit things like tax evasion. I couldn't think of anything else to write


For that one, I used the extract and talked about nationalisation & taxation. Thoughts?
For the 5 marker was it enough to just write out the 2 definitions and say how 1 billion people were lifted out of absolute poverty
Original post by james_arthur_1
For the 2 macro policies could you say 1) stronger trade unions and a higher minimum wage. 2) increased regulations on TNCs to limit things like tax evasion. I couldn't think of anything else to write


I used transfer pricing and NMW so yeah hopefully
Original post by Charbyrne00
For the government policies questions where you had to give two but they couldn’t be protectionism I wrote
Supply side policy of NMW
and transfer pricing
Do you think they were wrong


Ahaha we wrote the same thing right after each other. Got a lot more confidence in the answer now
Original post by Mefan Stolyneux
My reasoning was that if 2015 is the base year at 100 then the 4% increase in 2016 makes it 104. What did you do?


That's what I did as well because for price indexes if the percentage change is like 5% isn't it like 105 is the next index?? idk lol
Reply 76
Definitely 125 for index question

Percentage change from "3.2" (base year) to "4" is 25%

100 x 1.25 = 125
Original post by Failedalevels1
I read it as if it had gone from 3.2% to 4% so there had been a 0.8% increase and because 3.2% was the base year I divide it by that to find out the percentage increase 25% so it was a 125% increase


I think u had to write is a 25%. As implying its 125% increase would mean its 2.25 times the original amount
Original post by weex1
Guys for 15 marker i wrote that financial sector commercial banks can lend money cheaply so consumers borrow more, Ad rises and growth occurs

And that financial sector mainly banks are protected from failing, so they will unergo riskier decisions such as borrowing to risky consumers that will default on loans, leading to government bailing them out, and there is opportunity cost as this cash could be used to finance a policy to encourage growth and development..

Is that right


Crickey, someone has got themselves in a pickle haven't they
Can anyone remember what the 12 mark question was on?

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