This document provides an overview of a revision workshop covering market failure and government intervention. It discusses different types of market failure including externalities, monopoly power, missing markets, information failure, and inequality. It then examines government policies to address market failures and potential issues with government intervention, known as government failure. Examples are provided throughout to illustrate various concepts.
Browse the student workshop booklet for our popular A Level Business Strong Foundations exam-skills & revision workshop. For details on how you can attend A Level Business Strong Foundations, visit http://www.tutor2u.net/events/a-level-business-strong-foundations-workshops
Browse the student workshop booklet for our popular A Level Business Strong Foundations exam-skills & revision workshop. For details on how you can attend A Level Business Strong Foundations, visit http://www.tutor2u.net/events/a-level-business-strong-foundations-workshops
This is a revision presentation on international competitiveness designed for A level economics students.
Students will be expected to
Consider measures of competitiveness: For example: relative unit labour costs and relative export prices.
Understand factors influencing competitiveness such as the exchange rate; productivity; wage and non- wage costs; regulation.
Examine government policy to increase international competitiveness. For example: measures to improve education and training; incentives for investment; deregulation.
Most of you will be introduced to this topic early on in your AS micro course. Examiners are really keen that you can apply the concept of production possibility frontiers to depict opportunity cost, economic growth and the efficient allocation of resources. Distinguish between movements along and shifts in production possibility frontiers. A basic definition of economic growth is required along with knowledge of the factors which might cause the production possibility frontier to shift outwards OR inwards.
Students should be able to:
Identify economies and diseconomies of scale.
Students must be able to distinguish and give examples of internal and external economies and diseconomies of scale.
This is a revision presentation on international competitiveness designed for A level economics students.
Students will be expected to
Consider measures of competitiveness: For example: relative unit labour costs and relative export prices.
Understand factors influencing competitiveness such as the exchange rate; productivity; wage and non- wage costs; regulation.
Examine government policy to increase international competitiveness. For example: measures to improve education and training; incentives for investment; deregulation.
Most of you will be introduced to this topic early on in your AS micro course. Examiners are really keen that you can apply the concept of production possibility frontiers to depict opportunity cost, economic growth and the efficient allocation of resources. Distinguish between movements along and shifts in production possibility frontiers. A basic definition of economic growth is required along with knowledge of the factors which might cause the production possibility frontier to shift outwards OR inwards.
Students should be able to:
Identify economies and diseconomies of scale.
Students must be able to distinguish and give examples of internal and external economies and diseconomies of scale.
Browse the student workshop booklet for A Level Economics Strong Foundations - our intensive exam-skills and revision one-day workshop for all final year A Level Economics students. For more information about attending these superb workshops visit http://www.tutor2u.net/events/a-level-economics-revision-strong-foundations
The aims of UK competition policy are to promote competition; make markets work better and contribute towards improved efficiency in individual markets and enhanced competitiveness of UK businesses within the European Union single market
[MT445 | Managerial Economics]
Unit 5 Assignment
Student Name:
Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.
1. How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.
2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140.
Output
FC
VC
TC
TR
Profit/Loss
0
$90
$ 0
___
___
___
1
90
90
___
___
___
2
90
170
___
___
___
3
90
290
___
___
___
4
90
430
___
___
___
5
90
590
___
___
___
6
90
770
___
___
___
a.
Complete the table.
b.
What level of output should the firm produce to maximize profits?
c.
Assume this firm is making a loss when it produces its 7th unit of output. What should the firm do in the short-run?
3. How does the profit maximization condition for a monopoly differ from that for a perfectly competitive firm? How does this difference impact efficiency under each market structure?
4. The following table provides market share information about the soft-drink industry.
Company
Market Share
Coca-Cola
37%
Pepsi-Co
35
Cadbury Schweppers
17
Other
11
a. Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed? Explain.
b. Do you think this market has barriers to entry? If so, what might they be?
Directions for Submitting your Assignment
Complete your Assignment in this Microsoft Word® document and save it as Username-MT445Assignment-Unit#.doc (Example:TAllen-MT445Assignment-Unit5.doc). Submit your file by selecting the Unit 5: Assignment Dropbox by the end of Unit 5.
Unit 5 Assignment
Content and Analysis
Points Possible
Points Earned
Problem #1
How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.
8
Problem #2
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140. Complete the table (a)
7
What level of output should the firm produce to maximize profits? (b)
4
Assume this firm is making a loss when it produces its 7th unit of output. What should the firm do in the short-run? (c)
4
Problem #3
How does the profit maximization condition for a monopoly differ from that for a perfectly competitive firm? How does this difference impact efficiency under each market structure?
8
Problem #4
The following table provides market share information about the soft-drink industry. (a-b)
8
Writing Style, Grammar, and APA Format.
6
Total
45
WELCOME TO
SEMINAR 5
February 4, Wed. 10-11 pm ET
MT445-02
MANAGERIAL ECONOMICS
INSTRU.
Economies of Scale - Impact on Profits and Consumer Welfaretutor2u
Here is a suggested answer to a two-part question.
(i) Analyse and evaluate the causes of and significance of economies of scale for the profitability of businesses such as Netflix, Amazon and Uber
(ii) what extent do consumers always benefit from businesses experiencing economies of scale?
Outline for Lecture 15Long-Run Production CostsThe Lon.docxgerardkortney
Outline for Lecture 15
Long-Run Production Costs
The Long-Run Cost Curve (five plant sizes)
Suppose that a firm can operate in five alternative plants in the short run, Plants 1 through 5, with respective short-run average total cost curves (ATC1 through ATC5) illustrated by Figure 9.7.
In this illustration, vertical white lines show levels of output at which firm should change its plant to achieve the lowest average total cost.
To see why, suppose that firm produces an output of less than 20 units, say 15 units. In this case, lowest average total cost is achieved in Plant 1 because ATC1 lies below all other ATC curves for 15 units. Provided that plant is a variable resource in the long run, firm chooses Plant 1, indicating that blue section of ATC1 is part of firm’s long-run average total cost curve for output levels below 20 units.
Now, suppose firm raises production to somewhere between 20 and 30 units, say 25 units. In this second case, lowest average total cost is achieved in Plant ____ because ____ lies below all other ATC curves for 25 units. Provided that plant is a variable resource in the long run, firm chooses Plant ____, indicating that blue section of ____ is part of firm’s long-run average total cost curve for output levels between 20 and 30 units.
Similarly, blue section of ____ is part of long-run average total cost curve for output levels between 30 and 50 units, blue section of ____ is part of long-run average total cost curve for output levels between 50 and 60 units, and blue section of ____ is part of long-run average total cost curve for output levels above 60 units.
Given these five cases illustrated by Figure 9.7, how do we obtain long-run average total cost curve? Is it smooth or bumpy? Explain.
The Long-Run Cost Curve (unlimited plant sizes)
The blue long-run average total cost curve in Figure 9.7 is drawn under the assumption that firm can operate in five alternative plants in the short run. However, in modern manufacturing industries (i.e. automobiles, pharmaceuticals, etc.) the number of possible plant sizes is many more than five.
In line with this reasoning, each red average total cost curve in Figure 9.8 represents a possible plant size in the short run.
Given all these red curves illustrated by Figure 9.8, how do we obtain long-run average total cost curve? Is it smooth or bumpy? Explain.
Economies and Diseconomies of Scale
Shape of long-run average total cost curve (Figures 9.8 and 9.9) is explained via economies and diseconomies of scale.
Economies of Scale
In the upper panel of Figure 9.9, economies of scale corresponds to ____ part of the curve; in the output range between zero and q1, average total cost ____ as production rises in the long run.
Explain economies of scale: why is average total cost decreasing with rising output?
Diseconomies of Scale
In the upper panel of Figure 9.9, diseconomies of scale explains ____ part of the curve; in the output range above than q2, avera.
Deliverable 6 - Profit Maximizing Quantity and Price Present.docxcargillfilberto
Deliverable 6 - Profit Maximizing Quantity and
Price Presentation
Competency
Understand economic terminology and economic definitions pertaining to
decisions made by managers.
Course Scenario
Oil Company X is a large oil refinery which has been expanding and taking on
new investment projects. Recently, they have considered building a pipeline
that stretches across the United States, from Canada to New Orleans. As an
alternate investment, they are considering increasing production at existing
facilities.
In order to compare these investment opportunities, the head of the Cost
Analysis Department has tasked you with finding the profit maximizing
quantity and price if production continues at existing facilities. You will then
present this to the head of the department in a meeting, along with supporting
documentation such as cost curves, data tables, and equations.
Instructions
As a Cost Analyst at your firm, you are being asked to evaluate the profit
maximizing quantity and price for your product to submit to your manager.
Assume that your firm is a monopoly supplier of oil in your region, due to
extensive trade restrictions.
Another team member in the Cost Analysis Department has compiled the
necessary data in the linked spreadsheet. You will have to complete the
missing columns for ATC, AVC, and MC. If the company is incurring a profit,
include the amount of the profit earned when quantity and price are
maximized. If your company is incurring a loss, prove whether it should shut
down or continue operating at a loss. Use graphs and equations to support
your argument.
You will create a short screen recording with narration arguing your case to
your manager. Create a PowerPoint presentation to support your
https://content.learntoday.info/Competency/ECO3250/Deliverable%206%20Spreadsheet.xlsx
recommendation which can serve as the visuals for your recorded screen
capture.
There are many free screen recording software/Webware options available
(such as Screencast-O-Matic) to use in presenting your PowerPoint. Make
sure that both your voiced narration and the PowerPoint slides are captured
during your screen recording.
Be sure to include a cohesive introduction and conclusion of your findings.
Your body slides should include any relevant curves created in Excel from the
data spreadsheet.
After recording, paste a link to the recording on the last slide of the
PowerPoint presentation. Attach the PowerPoint presentation as well as the
Excel spreadsheet showing how you created the curves and obtained the
profit maximizing quantity and price, as well as the corresponding profit or
loss.
Format your PowerPoint to include a title page, introduction, body slides,
conclusion, and references. Remember to cite your sources using correct
APA format, and also use correct grammar, spelling, and formatting.
Grading Rubric
F F C B A
0 1 2 3 4
Not
Submitted No Pass Competence Proficiency Mastery
N.
Sa
va
A
le
xa
nd
ru
/V
et
ta
/G
et
ty
Im
ag
es
Learning Objectives
By the end of this chapter, you will be able to:
• Explain the difference between accounting profit and economic profit.
• Calculate the various short-run cost measures and illustrate their relationships graphically.
• List the reasons for economies and diseconomies of scale.
• Determine the profit-maximizing level of production.
Costs and Profits
8
ama80571_08_c08_223-248.indd 223 1/28/13 9:49 AM
Introduction CHAPTER 8
Introduction
Consider this. . . At the end of the Carter administration and the beginning of the Reagan administration, experiments with deregulation were becoming common-place. For example, the Airline Deregulation Act of 1978 removed government con-
trol over fares, routes, and market entry (of new airlines) from commercial aviation. The
goal was to allow market forces to encourage entry into air transportation by new carriers,
entry into new markets by current carriers, and generally reduce the rigid practices previ-
ously enacted by the Civil Aeronautics Board. The first observable result of this deregula-
tion was the advent of competition in the industry. Price competition was observed for
the first time. Other effects of competition were greater route frequency, better on-time
performance, more baggage efficiency, and expanded frequent flyer programs.
Although the average fare per passenger mile did fall from 33.3 cents in 1974 to 13 cents in
2010 (in real terms), deregulation also brought about a wave of bankruptcy filings, union
disputes, and a sky-high number of passenger complaints (Breyer, 2011; Burtless & Have-
man, 1987). After the deregulation, most airlines simply went out of business; a few were
taken over by the major airlines.
By 2011, the number of domestic airlines was down to just seven primary carriers. Dur-
ing that same year, United Airlines merged with Continental Airlines to surpass Delta
Airlines and become the world’s largest airline. Although United Airlines generated $32.5
billion in passenger revenue in 2011, its net income in that same year was just $840 million.
Why is United Airlines not more profitable? American Airlines generates the third largest
passenger revenue, yet it posted almost $2 billion in losses in 2011 (Boehmer, 2012, p. 16).
What is so costly about operating an airline? Will American Airlines and US Airways be
the next merger? What happened to all the others? The discussion of costs and profits in
this chapter will shed more light on this issue.
As we explained in the preceding chapter, entrepreneurs attempt to minimize costs in
order to increase profit. But we need to be careful to define costs of inputs in terms of
opportunity cost. Measuring costs of inputs in this way can be a problem if you are not
used to thinking in terms of opportunity cost and are more used to thinking in terms of
explicit cost. Explicit costs are accounting costs or money outlays. Impli.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
1. A Level Economics – Year 1 (AS) Revision Workshop
Session 2
Market Failure and
Government Intervention
12
In this session we will consider under what circumstances free-market
conditions do not always lead to the optimum social outcome. We will
also look at how the Government intervenes to combat such market
failure and how this intervention is not always successful.
2. A Level Economics – Year 1 (AS) Revision Workshop
Market Failure
Complete Market Failure occurs when the market simply
does not supply products at all - we see "missing
markets“.
Partial Market Failure occurs when the market does
actually function but it produces either the wrong
quantity of a product or at the wrong price.
12
Remember – most market failures we discuss at A Level
Economics are ‘partial’.
3. A Level Economics – Year 1 (AS) Revision Workshop
Types of Market Failure:
12
1 2 3 4 5
Example Example Example Example Example
Externalities
Fracking
(?)
Monopoly
power
Microsoft
Missing
Markets
Flood
defences
Information
failure
Estate
agents
Inequality
Wage
discrimination
for women
4. A Level Economics – Year 1 (AS) Revision Workshop
Externalities – AQA and OCR
13
Production - Positives Consumption - Negatives
Example (Positive) Example (Negative)
Where the marginal social cost of
production is lower than the
marginal private cost.
Lower transport costs for local
firms following construction of
new roads or airports
Where the marginal social
benefit of consumption is lower
than the marginal private
benefit.
Smokers ignoring the
harmful effects on others of
passive smoking
5. A Level Economics – Year 1 (AS) Revision Workshop
Externalities – All boards
13
Production – Negatives Consumption - Positives
Example (Negative) Example (Positive)
Where the marginal social cost of
production is greater than the
marginal private cost.
Air, land, river and noise
pollution which results from
factory emissions
Where the marginal social
benefit of consumption is greater
than the marginal private
benefit.
Benefits for society of free
public access to museums
6. A Level Economics – Year 1 (AS) Revision Workshop
Note:
AQA do not require diagrams for their AS
assessment on externalities. Edexcel and OCR do
require such diagrams. Activity 1 on page 20 tests
knowledge of these diagrams.
13
7. A Level Economics – Year 1 (AS) Revision Workshop
Succinct definitions!
A good that, if left to market forces, would be under-
consumed but generate positive externalities.
Merit Good
Remember, examiners will be expecting definitions of key
terms but keep them short whilst fully explanatory
13
8. A Level Economics – Year 1 (AS) Revision Workshop
Application – Museums charge for temporary
exhibitions
Since 2001, most
museums in the
UK do not charge
for entry
UK Govt felt that
museum
attendance
benefitted society
Attendance at
museums since
2011 has
increased by 50%
However, some
museums charge
admission fee for
temporary
exhibitions
Example: ‘Sunken
cities: Egypt's lost
worlds” at the British
Museum in 2016 will
cost £16.50 to enter
Museums argue
that this helps
cover the cost of
these exhibitions
13
9. A Level Economics – Year 1 (AS) Revision Workshop
Assess the arguments for and against museums
charging for entry to temporary exhibitions.
Argument for Argument against
Point
Explanation
Evidence
14
Throughout today’s sessions we are going to use the PEEEL acronym
to analyse and evaluate the case studies and questions presented.
PEEEL stands for:
POINT
EXPLANATION
EVIDENCE/EXAMPLE
EVALUATION
LINK BACK TO QUESTION
10. A Level Economics – Year 1 (AS) Revision Workshop
Assess the arguments for and against museums
charging for entry to temporary exhibitions.
Argument for Argument against
Point
Explanation
Evidence
Improves the number or
quality of exhibitions
Charging brings in funds in
addition to Govt payments
Exhibitions (such as
Egyptian one) might not
happen otherwise
Reduces access to some
people
Cost of exhibition makes it
prohibitive to some
£16.50 cost
14
11. A Level Economics – Year 1 (AS) Revision Workshop
Firms will profit maximise. With little competition firms
are able to set higher prices. This leads to allocative
inefficiency.
Firm is not making the optimal use of scarce resources.
How does the level of competition within a market lead to
market failure and welfare loss?
14
12. A Level Economics – Year 1 (AS) Revision Workshop
CMA investigates merger between Celesio and Sainsbury’s Pharmacy
CMA to investigate the proposed
merger between Celesio AG
(owners of Lloyds Pharmacies)
and Sainsbury’s Pharmacies.
Celesio owns and runs 1542
outlets, whilst Sainsbury’s
has 277 pharmacies.
CMA has identified where 78 local
areas may be affected by the
merger, with some of the
pharmacies likely to close.
Pharmacies compete on the
quality and range of products,
with a primary factor including
their opening times.
14
13. A Level Economics – Year 1 (AS) Revision Workshop
Assess the view that the proposed merger between
Celesio AG and Sainsbury’s Pharmacies will INEVITABLY
lead to welfare loss.
Argument for Argument against
Point
Explanation
Evidence
Reduced competition allows
firms to set higher prices
Firms seek to profit maximise –
less competition allows for
higher prices
78 Local areas that will be
affected including the closing
of stores
Merger could lead to
economies of scale
Economies of scale may come
from streamlined
administration or training
Firms will attempt to streamline and
keep some costs low – this could
benefit consumers
15
14. A Level Economics – Year 1 (AS) Revision Workshop
Is the BBC iPlayer a Public Good?
15
15. A Level Economics – Year 1 (AS) Revision Workshop
Non-rival – consumption by one person does not prevent
others from using it.
Non-excludable – providing it for free to TV Licence
holders makes it almost impossible to stop others using it
(especially in the UK)
Factors that suggest that the iPlayer service is a Public
Good
15
You have 1 minute to come up
factors that suggest that the
BBC iPlayer IS or IS NOT a
public good
16. A Level Economics – Year 1 (AS) Revision Workshop
Can prevent free-riding by using software.
Alternative could be provided by a private firm which
could charge – e.g. other catch-up services such as ITV
Hub.
Factors that suggest that the iPlayer service is NOT a
Public Good
15
17. A Level Economics – Year 1 (AS) Revision Workshop
Evaluate the view that the BBC iPlayer service should be a subscription-only facility,
like the services already supplied by firms such as Netflix and Amazon Prime.
Argument for Argument against
Point
Explanation
Evidence
Evaluation
Subscriptions could improve
the quality of output
Increase in revenues for BBC
could be used to fund
improved or increased output
Increase in range and quality of
Netflix and Amazon illustrates
value of investment
Publically funded iPlayer acts
as incentive to others to
improve their service
Firms such as Netflix need to
invest and provide good quality
service to compete with iPlayer
Netflix now funds its own shows and
does not solely rely on providing
streaming of other networks’ output
16
However, if BBC programmes are
funded through public monies why
should repeats not be made available
for free?
It depends on view of improved
‘quality’. Are most new programmes
made in the USA?
18. A Level Economics – Year 1 (AS) Revision Workshop
Government Intervention to combat market
failure
16
S2
P2
Q2
S2
P2
Q2
P max
Q2 Q3
You have 1 minute complete
the 3 diagrams on page 16 to
illustrate the impact of the
stated Government
Intervention
19. A Level Economics – Year 1 (AS) Revision Workshop
Other possible government interventions:
Regulation Buffer Stocks
Supply-side to
impact on factor
immobility
16
E.g. Ofgem E.g. in agriculture
E.g. change A
level structure to
improve learning
20. A Level Economics – Year 1 (AS) Revision Workshop
Political
self-
interest
Policy
myopia
Regulatory
capture
Imperfect
information
Cost of
administration
and
enforcement
You have 1 minute to list 5
possible causes of Government
Failure
17
e.g. subsidies for
Electricity plants
using coal
e.g. Did govt do
enough to stop
banking crisis?
21. A Level Economics – Year 1 (AS) Revision Workshop
Application – UK Haulage Industry
Road Haulage
Association (RHA)
suggests that
there is a
shortage of
drivers
Shortage is
between 45 and
50 thousand
drivers Caused by
expensive test
for new drivers
(£3000)Test also has a
pass rate of
only 51%
RHA argues for
an injection of
Govt cash into
the industry
17
22. A Level Economics – Year 1 (AS) Revision Workshop
Assess the view that a £150 million subsidy to the haulage industry will
certainly lead to a welfare gain for the UK economy.
Argument for
Point
Explanation
Evidence
Evaluation
Link back
An effective haulage industry is key to efficiencies throughout the
economy.
Many sectors (e.g. retail, heavy plant) use the haulage industry
extensively. A more effective haulage industry reduces general
business costs.
Haulage industry is used to transport finished and part finished goods.
18
It depends on where the money is placed. Could government money
be better placed in improving infrastructure rather than skills of
drivers?
A large subsidy to the haulage industry would support numerous
sectors within the economy, reducing costs and leading to a welfare
gain for the UK economy.
23. A Level Economics – Year 1 (AS) Revision Workshop
Assess the view that a £150 million subsidy to the haulage industry will
certainly lead to a welfare gain for the UK economy.
Argument against
Point
Explanation
Evidence
Evaluation
Link back
The haulage industry does not need a subsidy but needs to be more
efficient in operations.
The change in the testing system is attempting to improve the quality
of drivers and should lead to long term efficiency gains.
Cost and rigour of test will ensure that only able drivers are used
within the industry.
18
However, there may be a short term period where there is a lack of
adequate drivers; some intermediate action may be required.
A subsidy does not bring a long term gain in welfare for the UK and
would only support an inefficient industry.
24. A Level Economics – Year 1 (AS) Revision Workshop
COP21 – Climate Change Summit
Suggested answers for ‘Question
Framing’ exercise on page 29 will
be available in the download of
this presentation.
18
25. A Level Economics – Year 1 (AS) Revision Workshop
Extension
activities
20