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A-Level Edexcel Economics B Paper 1 2019 Unofficial Markscheme 20/05

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what did everyone put for the 20 markers
My balance was that economies of scale may be important but that it may restrict their market orientation. Smaller firms like New Balance may be able to respond quickly to market changes in taste and fashion which Nike may be limited in doing. Didn’t mention diseconomics of scale ://///
Original post by Emanuel111
I also did non-price - the question said firms ''SUCH AS'' Nike, so I took it to mean I could talk about a different firm entirely that may not be looking to maximize sales volume as much. Hopefully, that's okay :/ Definitely one of if not the hardest question for me.

I was tempted to write that last part, but does it !???? Less spending would affect all areas of the economy, no? Not just price elastic areas? I did, however, mention something similar in my conclusion, as the premium shoes likely meant the consumers found it to be a smaller proportion of their total income, etc and so still buy despite higher interest rates.
Original post by ALEVELSAREHARD10
what did everyone put for the 20 markers


Regulation:
-Intro explaining/describing the changes in oil+electricity prices
-Benefits consumers as should make energy companies more competitive lowering prices
-Enforcement of regulation can benefit customers eg the $18 million in compensation to vulnerable customers and less likely to happen again.
-May not be too effective if regulation isn't strong enough as biggest companies eg British Gas may tacitly collude and the fine they receive will be less substantial than the income produced through tacit collusion so may not benefit consumers.
-May rise prices as regulation means they have to adhere to tighter rules which may rise prices for consumers.

Education as a merit good and impact on UK economy:
-Provides people with more skills to go out and get a job. Increased AS and full capacity output. Easier to find jobs which can increase AD.
-Provision of early education allows parents more time to be working/less time child caring improving businesses productivity which can benefit the UK economy if more competitive on exports.
-Lack of funding for univerisities eg less competitive than Scotland, France etc means scarcer very skilled labour and means it may decrease full capacity output as they lack certain skills.

Think I had a few more points but forgotten them :frown:
1st 20 marker
• Regulation may lead to a reduction in tacit collusion etc... leading to greaterr disposable income for consumers.
• However tacit collusion is subtle and may be hard to regulate.
• Regulation may reduce information gaps between consumers and suppliers. This reduces impact of Information asymmetry (market failure)
• However energy is price inelastic and may mean consumers accept the opportunity cost of not switching to cheaper alternatives as it may take time to do.
2nd 20 marker:
• Drew graph to show external benefit or merit good and government intervention along Y-axis.
• Intervention may reduce voluntary unemployment of parents having to look after children (extract G). Link to increases in aggregate supply.
• However only affected 15,000 people and therefore may have limited affect to macro economy.
• Intervention within universities may encourage people to go to Uni, could increase skill base of the economy and in turn increase pool of labour within the economy.
• However, considerable time-lag accossiated with supply-side policy (employment around 18 months)
I liked the 20 markers but struggled for time :/
Original post by ALEVELSAREHARD10
what did everyone put for the 20 markers
Original post by Tr0picalgaming
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand.
If they have a loan to expand will become more expensive to pay it back.

Won't be affected if they expand within their retained profits by interest rates.
Depends on the elasticity of demand for the shoes whether they'd be affected in sales


Didn’t it say on manufacturing in the UK? I assumed that we should have just spoken about that side, not the consumers side
I remember the question being saying something along the lines of, how interest rates effects the production side of new balance in the UK? I would have assumed we therefore cannot speak about consumer spending
Original post by Tr0picalgaming
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand.
If they have a loan to expand will become more expensive to pay it back.

Won't be affected if they expand within their retained profits by interest rates.
Depends on the elasticity of demand for the shoes whether they'd be affected in sales
Original post by azaanmughal
I remember the question being saying something along the lines of, how interest rates effects the production side of new balance in the UK? I would have assumed we therefore cannot speak about consumer spending

I think it included consumer spending as well. Read the question many times and people seem to have inlcuded that in their answers?
anyone got mark scheme for economics a exam
Original post by Tr0picalgaming
I think it included consumer spending as well. Read the question many times and people seem to have inlcuded that in their answers?


I put that higher IR = less investment = less jobs thus less spending and demand for trainers? Not 100% sure what i put now but something along those lines
hi, can tell me for IGCSE o levels please
Yo my dude what didn’t u think of stakeholder conflict question I could only think of shareholders vs manages, wat u put as u are predicted an A*
Original post by Tr0picalgaming
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand.
If they have a loan to expand will become more expensive to pay it back.

Won't be affected if they expand within their retained profits by interest rates.
Depends on the elasticity of demand for the shoes whether they'd be affected in sales
Original post by sachapannell
1st 20 marker
• Regulation may lead to a reduction in tacit collusion etc... leading to greaterr disposable income for consumers.
• However tacit collusion is subtle and may be hard to regulate.
• Regulation may reduce information gaps between consumers and suppliers. This reduces impact of Information asymmetry (market failure)
• However energy is price inelastic and may mean consumers accept the opportunity cost of not switching to cheaper alternatives as it may take time to do.
2nd 20 marker:
• Drew graph to show external benefit or merit good and government intervention along Y-axis.
• Intervention may reduce voluntary unemployment of parents having to look after children (extract G). Link to increases in aggregate supply.
• However only affected 15,000 people and therefore may have limited affect to macro economy.
• Intervention within universities may encourage people to go to Uni, could increase skill base of the economy and in turn increase pool of labour within the economy.
• However, considerable time-lag accossiated with supply-side policy (employment around 18 months)
I liked the 20 markers but struggled for time :/


I struggled with time to and ended up only writing half a side of a4 for each of the 20 markers 😬. Any predictions for the next paper ?
Shareholder vs government
Sharehold wanna move for cheaper cost and then chain off reasoning, government want more jobs to stay in the uk for higher tax revenue and less transfer payment to keep budget at a surplus and not deficit
Original post by kaam1234
Yo my dude what didn’t u think of stakeholder conflict question I could only think of shareholders vs manages, wat u put as u are predicted an A*
anyone got for Business Igcse 9-1 paper 2 o levels
Hi, i want for maths foundation Igcse 9-1 please paper 1, today is the exam
Original post by Lucybeamish
I struggled with time to and ended up only writing half a side of a4 for each of the 20 markers 😬. Any predictions for the next paper ?




nothing on 3.6 last year. also nothing on 2.3 and theres a lot of stuff in that so that will probably be tested.
Reply 76
Avatar for yazpazz
yazpazz
1
I can't properly remember but I put something about how shareholders and owners may conflict with employees as employees want decent pay (e.g. minimum wage in UK and US isn't exploiting the workers) but owners and shareholders want to maximise profit so by being in cheaper labour markets they can pay less.

Alternatively I also put that there may not be stakeholder conflict if they pay well and have good employee welfare and working conditions as employees are more efficient and productive etc.

Conclusion I wrote how there are lots of stakeholders within a business and it is likely they will all agree e.g. consumers want lower prices so often cheaper materials are used but this may not be environmentally friendly so environmentalists may disagree
Original post by kaam1234
Yo my dude what didn’t u think of stakeholder conflict question I could only think of shareholders vs manages, wat u put as u are predicted an A*
Original post by Tr0picalgaming
Doesn't mean we're right but think its what you're supposed to do :smile:


shift demand as was endorsed by celebrity excess demand is difference in quantity at same price, new price is the new equilibrium
Original post by Emanuel111
I also did non-price - the question said firms ''SUCH AS'' Nike, so I took it to mean I could talk about a different firm entirely that may not be looking to maximize sales volume as much. Hopefully, that's okay :/ Definitely one of if not the hardest question for me.

I was tempted to write that last part, but does it !???? Less spending would affect all areas of the economy, no? Not just price elastic areas? I did, however, mention something similar in my conclusion, as the premium shoes likely meant the consumers found it to be a smaller proportion of their total income, etc and so still buy despite higher interest rates.


When it says such as nike, you still need to use nike as the case study, otherwise it doesnt count for context
But thanks for lowering the grade boundries for us
why are you posting GCSE business in an a level section especially when economics is much harder than business.
Original post by marphill
anyone got for Business Igcse 9-1 paper 2 o levels

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