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OCR A2 Economics in a European Context 2888- June 09

I attempted the Tutor2u mock but how do you do the question about drawing a supply and demand picture about rising food prices? Isn't that all in extract 4 (not extracts 2 and 3 which it asks you to use) with farmers switching out of cereals and oil prices rising?

Reply 21

nick-33

1

Hello, was just making notes on the tutor2u mark scheme for their paper and have a few questions..

One of their given points to make as to why food prices rose is.. "• Import tariffs imposed on all cereals except oats into the EU. Increasing costs of production and limiting supply.". Didnt the EU DROP import tariffs?

Also why doesnt it cite rising oil prices as a reason..does it want us to only use answers from extract 2 + 3?

Reply 22

vinsta

12

nick-33

Hello, was just making notes on the tutor2u mark scheme for their paper and have a few questions..

One of their given points to make as to why food prices rose is.. "• Import tariffs imposed on all cereals except oats into the EU. Increasing costs of production and limiting supply.". Didnt the EU DROP import tariffs?

Also why doesnt it cite rising oil prices as a reason..does it want us to only use answers from extract 2 + 3?

I don't know why they didn't do this, I think it is a valid reason though.

And yes, the EU lowered tarriffs in response to the food inflation. But the tariffs helped with the initial ascent of food prices.

Reply 23

nick-33

1

Oh I see, so they were introduced closeby to the 2006-8 inflation?

Another question, the mark scheme says that an import tarriff decrease diagram properly explained will gain high marks. Do I just say that consumer surplus increases, producer surplus decreases, tax revenue falls, imports rise orrrrrr do i have to explain why thats a good thing?

Reply 24

vinsta

12

nick-33

Oh I see, so they were introduced closeby to the 2006-8 inflation?

Another question, the mark scheme says that an import tarriff decrease diagram properly explained will gain high marks. Do I just say that consumer surplus increases, producer surplus decreases, tax revenue falls, imports rise orrrrrr do i have to explain why thats a good thing?

I'd be as detailed as possible.

Reply 25

J4GGYBoss

13

http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&ssPageName=STRK:MESELX:IT&item=160333371123 anyone have this case study?!

Reply 26

Hamoodii

gangsta316

I attempted the Tutor2u mock but how do you do the question about drawing a supply and demand picture about rising food prices? Isn't that all in extract 4 (not extracts 2 and 3 which it asks you to use) with farmers switching out of cereals and oil prices rising?

Hi,

You could say the supply shifts inwards for a number of reasons:

-Rising oil prices this rising costs of production eg tractors etc
-More land set aside for Biofuel production

Also, you could put a shift out in demand i.e economic growth in countries such as China resulting in greater demand.

Reply 27

vinsta

12

J4GGYBoss

http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&ssPageName=STRK:MESELX:IT&item=160333371123 anyone have this case study?!

The guy is a knob. The exam date is the 12th not 16th.

Reply 28

narc

Dunno whether it's in the toolkit or not, but a point for the effectiveness of maximum pricing- could encourage productive efficiency, as firms reduce costs of production to recapture profits, but it might be hard for them to do so because of the the rise in oil prices and fertiliser (refer to graphs).

I'm so bored of this already. D:

Reply 29

gangsta316

13

Hamoodii

Hi,

You could say the supply shifts inwards for a number of reasons:

-Rising oil prices this rising costs of production eg tractors etc
-More land set aside for Biofuel production

Also, you could put a shift out in demand i.e economic growth in countries such as China resulting in greater demand.

I agree with those points but the question asks you to use extracts 2 and 3. I found the question quite difficult without referring to the information in extract 4.

Reply 30

narc

First question could be comparing the world wholesale price of butter and the EU prices in fig 1.1 and 1.2 as opposed to the data question in the tutor2u mock.

Reply 31

nikm_45

I was just wondernig whether any of you could send me the toolkit. my teacher gave us the toolkit but took the mock paper out of it and has not given us the model answer either. My email address is [email protected]

Thanks

Reply 32

nick-33

1

nikm_45

I was just wondernig whether any of you could send me the toolkit. my teacher gave us the toolkit but took the mock paper out of it and has not given us the model answer either. My email address is [email protected]

Thanks