ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
2
QuestionResponses
3
1a (5)Necessity
4
Define Price inelastic demandLack of subtitues + local monopoly + supply from russia decreased = firm pass these costs due to inelastic demand for gas
5
6
7
1b (8)ev: only 5% of energy producers are solely electricity, so gas firms must operate away from Social optimum
8
The externalities with gas productionadd the fact that nhs bears negative externality on people with respirtory diseases, ev the job creation it provides means people can build an income to combat such diseases
9
Ev; firms engage in net zero projects = considering/reducing externality
10
Eval-Can be internalised via taxation increasing cop, increasing MPC
11
1c (12)Price cap from OFGEM not risen in line with wholesale gas prices so costs for firms very high so unable to invest and grow and also possible shutdown pointLack of output will mean that EoS can't occur such as purchasing
12
Why might oil and gas businesses struggle to growOligopoly and kinked demand curveEv: creative destrucition, bulb entered and innovated so they can grow through technology
13
Increase entrants to the market fig 2 = contestable
14
Finite resource
15
Wholesale prices are perfectly competitive - normal profits in LR
16
Dominant firms have economies of scale
17
Legalislation on carbon emissions
18
Increase costs = low profits to expand
19
1d (25)perceived MRPDiscrimination is illegal and hefty fines can result from successful claims. Can have a negative impact on costs when having strong preferences towards certain groups - Higher percieved MRP pushes up wages for those groups.
20
Micro macro reasons explaining gender wage differencesNatural rate of unemployment - 5% of applicants to an apprenticeship programme, half dropped out during interviews
21
Choices - Women choose careers which allow for greater work-life balanceSome of these careers may be just as competitive in earnings - many women are starting entrepreneurial ventures which give them a balance and provide strong financial rewards
22
damn did no one do this oneWomen up to a certain age see very little difference in pay - After starting a family burden to stay at home leads to deskilling and often fewer office hoursFlexible working mean women and men are able to work around families - People have less and less children - closing the gap - organisations providing childcare facilities - governments subsidising childcare costs
23
^weird question cuz you have to waffle a lot and little economic you can useBackward bending supply curve for women may be a lower target wageBroader discussions on pay and greater transperency see more parity between men and women
24
Societal pressure for men to be the 'breadwinner'Men are choosing to stay at home - social norms are changing
25
Some high paying jobs remain male dominated due to perceptionChanges in attitudes overtime - more promotion of these subjects towards girls
26
1e (25)
27
The micro and macro advantages of speciailisng in energy production USING GAS Macro - specialisation of gas production, costs per unit decrease, efficiency increases, Prebish singer hypothesis
28
comp advantage DOES ANYONE THING ITS OK IF YOUR MARCO POINT WAS A DISADVANTAGE OF SPECIALISATION AND THE EVALUATION WITH ADVATNAGE?? YES THE MARK SCHEME OFTEN SAYS MARK KAA AS EITHER AND THEN EVALUATION AS THE OTHER SIDE
29
injection in circular flow - positive multiplier effect
30
Micro - derived demand for labour - labor demand shifts out - exploit EOS
31
export prices reduce, demand increases, AD shift
32
Less dependency on imports of energy so increased value of X-M, also less prone to external shcoks therefore
33
2a (5)export-led growth and managed depreciationIsn't it a managed devaluation?
34
Why a managed E/R could be goodReduces volatile E/R mentioned in extract
35
36
37
2b (8)Interst rates high Unstable market? Supply of energy was inconsistent
38
Problems of expanding the chocolate industryHigh equpiment costs = opportunity costOther sections better eg Tea/Wine has 20x revenue
39
PES - Unable to respond to demand
40
Primary product volatility
41
Lack of adequate refrigeration equipment
42
2c (12)High interest rates on CEv: Exchange rate is weak so exports expensive so less AD Bruh when e/r is weak exports are cheaper
43
Two factors affecting ADTrade agreement = increase net trade and Increase investment in infratsructure by govt both increase ADEv: FDI and hot money flows
44
Did this question ask for 2?. Ik it said factors but
cant remember if it specifically said 2>> No it said factors only not how many
Ev: Tax falls to encourge growth(mentioned in extract) = govt spending falls = magnitiude of increase in AD smaller
45
2d (25)Micro: Acess to a large market with over 1.2bn ppl, revneue rises for ghana's firms, can tap into eos from increased quantity soldMicro: low prices and high choice for consumers because of removal of 90% of tariffs
46
Micro macro effects of Ghana joining AfCFTAEv1: local consumers may shift demand away from domestic producers and instead start importing goods, so revenue may not rise but fallEv: Ghanaian firms face more competition and lose SNP
47
Macro: Ghana can attract fdi + talk about benefits of fdiMacro: I think i did it wrong I said LRAS grows because of improved human labour capital and Managerial EoS for firms in Ghaha
48
Ev2: TNCs may engage in transfer pricing, so ghana may experience capital flight since profits will be leaving the countryEv: Prebisch singer. Increases in output for ghana will have negligible LR effect because they export a primary product
49
Impact on loss of govt revenue from tariffs
50
51
2e (25)
52
Micro/macro effects of high? interest rates didnt this question say or with a developing country of choice? or was it just any countrymicro: increase costs of borrowing = hard for firms to take out loans so Cocoa farmers can't invest in new tech eg tractor and so low productivity as their equipment diminishing so leads to increase unit labour costs- cost curve diagram - leads to fall in profits maybe even shut down and if 65% of ivory coast workforce is agricultural sector = really bad for ivory coast. eval: farmers might be financially illiterate so even if had low IR for loans they may not
53
macro: leads to fdi as hot money flows = injection multiplier , adTNcs are foot loose
54
Micro: Increase costs for firms with existing loands = increase in fiex costs = low profits = low dymamic effeicnecyAnyone agree?
55
Ev: Firms likely on fixed interest rates to prevent uncertency in future, therefore less effect on firms profits + Firms with good inovation ideas will still borrow therefore reduces the amount of firms which take on risky debt and default/bankrupt, increase in dynamic efficiency??EV MIRCRO: Very high IR---> Hot money flows--> appreciation---> imports for frms cheaper now so lower costs of producton
56
Macro: High I/R = low concupmtion due to high savings + low investment due to higher costs of borrowing = low demand = can help reduce inflation
57
EV: Macro trade offs: fall in econ grotwth and fall in current account since hot money flows in, therefore you need to consider if this is worth itSavings gap plugged Long run
58
Micro: lower loans taken out by consumers so lower spending on items and lower demand for firms so AR and MR shift inwards. Icl for macro i did the same analysis tho just with ad/as and was it not so similar to the 12 marker before hand?
59
BTW guys this question was pretty much the same as 2020 1d so heres the mark scheme for that:
https://pmt.physicsandmathstutor.com/download/Economics/A-level/Past-Papers/Edexcel-A/Paper-3/June%202020%20MS%20-%20Paper%203%20Edexcel%20(A)%20Economics%20A-level.pdf
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100