Could anyone help me mark this GCSE Economics exam?
I have done a past paper in Economics, and I would like some help marking these essay questions (this is Pearson-Edexcel by the way, but I would assume the marks would be the same for all exam boards). If anyone could mark one or multiple of the below questions, it would be greatly appreciated:
Question 1 (out of 6 marks)
Robert has been running a small business from a workshop in his own house for nine years. He has been carving door signs and gifts out of locally sourced wood. Rather than producing identical, standard items, he decided to only make products to meet the personal requirements of his customers. Each order is made specifically for them and reviews are very positive. Robert's success is due to a growing trend across the country as consumers increasingly prefer to buy locally sourced products.
Despite his success, Robert has decided to keep his business small and not expand.
(i) With reference to the data in 'Small but successful' and your knowledge of economics, analyse why Robert might have decided not to expand his business.
My answer:
Many firms such as Robert's prefer to keep their busineses small, as they can have a closer relationship with their costumerbase. This allows them to generally have better customer service, as it is more personal (he would struggle to make the goods personalised if he had to be industrially producing them on a large scale). This allows him to get better reviews, and this draws more people towards the company. Many firm owners also prefer to have small businesses, as growing it would bring too much risk, and this would be done at the opportunity cost of spending more time with their families.
Robert's door signs also seem to be quite a niche market - it is unlikely that a company could grow very large off producing very personalised, locally-produced products, as the demand is not there. He is almost forced to stay small as there is not the market there for him to expand his firm. Instead of standardising his product range, he chooses to stick to the current model of the shop, choosing quality over profits.
Question 2 (out of 9 marks)
Flu is an unpredictable virus that can cause mild or unpleasant illness in most people.
It can cause severe illness and even death among vulnerable groups, including older people, pregnant women and people with other health problems. These groups may, therefore, receive a free vaccination in the UK, to ensure they are protected against the virus. Although most people receive their vaccination from a public sector doctor, the UK Government has to pay private sector pharmacies to also provide this service. The cost to the UK Government of funding these vaccinations is over £100m per year.
(g) With reference to the data in 'Who should have the flu injection?' and your knowledge of economics, assess whether the cost to the UK Government of funding the flu vaccination can be justified.
My answer:
Government investment in the health of the people can be considered to be very justified, as the majority of the people who get this illness will experience 'unpleasant' symptoms. This is likely to cause them to take time off work (or otherwise they would spread it to others), which decreases national productivity and means that firms will have to pay out money whilst not getting any labour in return. If the ill person requires NHS treatment, this would cost more overall, so perhaps the government is saving itself money in the long-term.
The private sector may also not naturally provide the vaccinations, as there may be little profitability (we can see this in the text, as it said the government had to pay them to provide this service). This would mean there is a missing market for a greatly needed good, and the government needs to step in to fill the gap in the market. It is often considered the responsibility of the government to ensure the welfare of its citizens, and caring for their health is included in this (especially as our government has already established this principle by creating a national health service).
However, there are some downsides of this provision, most notably that it comes at an opportunity cost. The government could have spent this large amount of money (£100m annually) on other things. There may be larger threats to public health, such as smoking, traffic accidents or dangerous diseases that do not have cures. As most people will not become seriously ill, this may not be considered a good use of government money.
Question 3 (out of 6 marks)
*there is an unlabelled PPF that shows an outward shift. Axes are capital goods and comsumer goods*
Figure 3 shows an outward shift in the production possibility frontier (PPF) for an economy.
(e) Analyse why the economy has moved from PPF1 to PPF2
My answer:
A production possibility frontier is a graph which shows the amount of good x that can be produced whilst also producing a given amount of good y, using the current amount of resources available in the economy. An outward shift shows that the amount of resources in the economy has increased, and more of both goods can be produced at all points on the curve. Generally, this happens when there is economic growth.
New supplies of raw materials may have been discovered, such as coal or gold, or better transport links may have been installed, decreasing costs of production. The labour force may also have grown, due to an increase in the population above the working age (natural increase or economic migration). Better production methods may also increase this, such as specialisation (division of labour), etc.
Question 4 (out of 9 marks)
The newly formed trade union group, the South African Federation of Trade Unions (SAFTU), aims to represent workers in the country. In the past, trade unions in South Africa have played an important role, but the influence of trade unions has declined globally in recent years. SAFTU has nearly 700,000 members and is the second largest group of trade unions in South Africa.
(f) With reference to the data above and your knowledge of economics, assess how trade unions, such as those in the SAFTU, might have an impact on the labour market.
My answer:
Trade unions can have major impacts on the labour market. For example, they can increase the wages of their members through collective bargaining. This can create fairer salaries and increase quality of life, however this can also push wages up above market equilibrium and thus workers will be overpaid, and people may either be made redundant or companies will take on less workers. This decreases employment, providing less job opportunities for workers.
Trade unions such as those in the SAFTU can improve working conditions in general for employees and make them feel democratically represented in their jobs. This could increase productivity and company loyalty, as well as attracting new workers into jobs in which they will be supported by trade unions. Due to the increased quality of work conditions, perhaps workers would be less demanding of a salary increase? However, improving working conditions can be expensive, and things such as increased breaks may come at the cost of productivity.
The increased wages brought about by collective bargaining are likely to make doing certain jobs more attractive to those choosing their careers (eg. Young people), and they are more likely to study for these things in university. This would increase the skills of those in the labour market, and after these people are hired, would increase productivity, making the wage increases warranted. However, as the wages are higher, demand for workers would be lower, meaning many of these newly graduated people may struggle to find jobs in their desired industry, leaving the country in debt.
Question 5 (out of 6 marks)
The International Olympic Committee (IC) announced it had agreed a $7.75n deal with the USA television network, NBC Universal. This will extend its broadcasting rights to the Olympic Games up until 2032. The deal gives NBC Universal total control over all media platforms in the USA, including television, internet and mobile. A spokesman for NBC Universal said they were confident they would get back the high cost through advertising.
(b) With reference to the data above and your knowledge of economics, analyse the benefits to NBC Universal of agreeing this deal with the IOC.
My answer:
This deal gives NBC Universal total broadcasting rights to the Olympic Games until 2032, and gives it complete control over how the Olympics is Presented on all media platforms in the USA. This allows them to have a legal monopoly over the viewing of the Olympics, and to profit immensely from its popularity and success. The company said that they are likely to get back all of the money they paid for the deal.
The Olympics is very likely to be extremely successful, as it only happens rarely and there are no substitutes. People are almost forced to watch it, and thus are likely to pay any price. NBC Universal can exploit its monopoly power and will not have to worry about the quality or price of its services, as it has guaranteed high demand.
The price of this deal is, however, very high, so if there was to be a sudden unexpected decrease in the demand for the Olympics, they would lose significant money, and their profits may be limited due to the large amount of money they have already paid.
I don't have anough room for Q6, so I will put it in the comments section of this one if I can.
Question 1 (out of 6 marks)
Robert has been running a small business from a workshop in his own house for nine years. He has been carving door signs and gifts out of locally sourced wood. Rather than producing identical, standard items, he decided to only make products to meet the personal requirements of his customers. Each order is made specifically for them and reviews are very positive. Robert's success is due to a growing trend across the country as consumers increasingly prefer to buy locally sourced products.
Despite his success, Robert has decided to keep his business small and not expand.
(i) With reference to the data in 'Small but successful' and your knowledge of economics, analyse why Robert might have decided not to expand his business.
My answer:
Many firms such as Robert's prefer to keep their busineses small, as they can have a closer relationship with their costumerbase. This allows them to generally have better customer service, as it is more personal (he would struggle to make the goods personalised if he had to be industrially producing them on a large scale). This allows him to get better reviews, and this draws more people towards the company. Many firm owners also prefer to have small businesses, as growing it would bring too much risk, and this would be done at the opportunity cost of spending more time with their families.
Robert's door signs also seem to be quite a niche market - it is unlikely that a company could grow very large off producing very personalised, locally-produced products, as the demand is not there. He is almost forced to stay small as there is not the market there for him to expand his firm. Instead of standardising his product range, he chooses to stick to the current model of the shop, choosing quality over profits.
Question 2 (out of 9 marks)
Flu is an unpredictable virus that can cause mild or unpleasant illness in most people.
It can cause severe illness and even death among vulnerable groups, including older people, pregnant women and people with other health problems. These groups may, therefore, receive a free vaccination in the UK, to ensure they are protected against the virus. Although most people receive their vaccination from a public sector doctor, the UK Government has to pay private sector pharmacies to also provide this service. The cost to the UK Government of funding these vaccinations is over £100m per year.
(g) With reference to the data in 'Who should have the flu injection?' and your knowledge of economics, assess whether the cost to the UK Government of funding the flu vaccination can be justified.
My answer:
Government investment in the health of the people can be considered to be very justified, as the majority of the people who get this illness will experience 'unpleasant' symptoms. This is likely to cause them to take time off work (or otherwise they would spread it to others), which decreases national productivity and means that firms will have to pay out money whilst not getting any labour in return. If the ill person requires NHS treatment, this would cost more overall, so perhaps the government is saving itself money in the long-term.
The private sector may also not naturally provide the vaccinations, as there may be little profitability (we can see this in the text, as it said the government had to pay them to provide this service). This would mean there is a missing market for a greatly needed good, and the government needs to step in to fill the gap in the market. It is often considered the responsibility of the government to ensure the welfare of its citizens, and caring for their health is included in this (especially as our government has already established this principle by creating a national health service).
However, there are some downsides of this provision, most notably that it comes at an opportunity cost. The government could have spent this large amount of money (£100m annually) on other things. There may be larger threats to public health, such as smoking, traffic accidents or dangerous diseases that do not have cures. As most people will not become seriously ill, this may not be considered a good use of government money.
Question 3 (out of 6 marks)
*there is an unlabelled PPF that shows an outward shift. Axes are capital goods and comsumer goods*
Figure 3 shows an outward shift in the production possibility frontier (PPF) for an economy.
(e) Analyse why the economy has moved from PPF1 to PPF2
My answer:
A production possibility frontier is a graph which shows the amount of good x that can be produced whilst also producing a given amount of good y, using the current amount of resources available in the economy. An outward shift shows that the amount of resources in the economy has increased, and more of both goods can be produced at all points on the curve. Generally, this happens when there is economic growth.
New supplies of raw materials may have been discovered, such as coal or gold, or better transport links may have been installed, decreasing costs of production. The labour force may also have grown, due to an increase in the population above the working age (natural increase or economic migration). Better production methods may also increase this, such as specialisation (division of labour), etc.
Question 4 (out of 9 marks)
The newly formed trade union group, the South African Federation of Trade Unions (SAFTU), aims to represent workers in the country. In the past, trade unions in South Africa have played an important role, but the influence of trade unions has declined globally in recent years. SAFTU has nearly 700,000 members and is the second largest group of trade unions in South Africa.
(f) With reference to the data above and your knowledge of economics, assess how trade unions, such as those in the SAFTU, might have an impact on the labour market.
My answer:
Trade unions can have major impacts on the labour market. For example, they can increase the wages of their members through collective bargaining. This can create fairer salaries and increase quality of life, however this can also push wages up above market equilibrium and thus workers will be overpaid, and people may either be made redundant or companies will take on less workers. This decreases employment, providing less job opportunities for workers.
Trade unions such as those in the SAFTU can improve working conditions in general for employees and make them feel democratically represented in their jobs. This could increase productivity and company loyalty, as well as attracting new workers into jobs in which they will be supported by trade unions. Due to the increased quality of work conditions, perhaps workers would be less demanding of a salary increase? However, improving working conditions can be expensive, and things such as increased breaks may come at the cost of productivity.
The increased wages brought about by collective bargaining are likely to make doing certain jobs more attractive to those choosing their careers (eg. Young people), and they are more likely to study for these things in university. This would increase the skills of those in the labour market, and after these people are hired, would increase productivity, making the wage increases warranted. However, as the wages are higher, demand for workers would be lower, meaning many of these newly graduated people may struggle to find jobs in their desired industry, leaving the country in debt.
Question 5 (out of 6 marks)
The International Olympic Committee (IC) announced it had agreed a $7.75n deal with the USA television network, NBC Universal. This will extend its broadcasting rights to the Olympic Games up until 2032. The deal gives NBC Universal total control over all media platforms in the USA, including television, internet and mobile. A spokesman for NBC Universal said they were confident they would get back the high cost through advertising.
(b) With reference to the data above and your knowledge of economics, analyse the benefits to NBC Universal of agreeing this deal with the IOC.
My answer:
This deal gives NBC Universal total broadcasting rights to the Olympic Games until 2032, and gives it complete control over how the Olympics is Presented on all media platforms in the USA. This allows them to have a legal monopoly over the viewing of the Olympics, and to profit immensely from its popularity and success. The company said that they are likely to get back all of the money they paid for the deal.
The Olympics is very likely to be extremely successful, as it only happens rarely and there are no substitutes. People are almost forced to watch it, and thus are likely to pay any price. NBC Universal can exploit its monopoly power and will not have to worry about the quality or price of its services, as it has guaranteed high demand.
The price of this deal is, however, very high, so if there was to be a sudden unexpected decrease in the demand for the Olympics, they would lose significant money, and their profits may be limited due to the large amount of money they have already paid.
I don't have anough room for Q6, so I will put it in the comments section of this one if I can.
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