2. Grade Boundaries for AS Micro Data is from the Jan 2011 paper (raw mark out of a total of 75) For the paper as a whole – these were the grade boundaries A: 54 B: 47 C: 40 D: 34 E: 28
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7. Data Question (8 marks) Start each point of comparison or identification with a separate paragraph Always give unit of measurement (e.g. $billion or % of GDP) Avoid simple “data trawling” Take note of the question - e.g. “take note of the word significant” Look for trends / volatility / convergence / divergence / correlation Always put data into your answer Alwaysmake at least one calculation
8. Explanation questions (12 marks) E.g. With the help of a demand and supply diagram, explain how a tax on the plastic bags distributed by shops and supermarkets might affect the use of plastic bags Quality of diagrams matters a lot (labelling, clarity, accuracy – size – at least 1/3rd of a side of A4) Draw from prompts in the data when explaining Double diagrams often work well Remember the importance of elasticity of demand and supply in shaping the analysis Explanation requires building a “chain of reasoning”
9. Evaluation Question (25 marks) Max mark of 15/25 if there is no evaluation Analysis comes first! “good evaluation first requires sound economic analysis of the issue or problem posed by the question.” Examiners are keen to reward good awareness of recent or current economic events Make good use of the extracts (including the data) to score marks for application Go back to the charts / tables in the 25 mark question – they are there for a reason! “Candidates do need to use the data explicitly when responding to the context questions”
10. OK ... What to revise – what really matters in the next 24 hrs? Be really prepared with knowledge of key definitions The power of market forces (crucial) – i.e. the role of signals and incentives in driving resource allocation Elasticity of demand and supply and price volatility in markets – and the consequences of this State provision versus the market Health care Public goods issues Benefits and costs of monopoly power / competitive forces Economic welfare and efficiency (including externalities) Supply and demand side interventions and their impact Government failure (crucial) – in the short and long run
11. Government failure Decisions made in pure political self interest Poor value for money from public sector investment Government policy myopia Regulatory capture Disincentives arising from specific policies Information failures in government policies The “law of unintended consequences” The costs of regulation may outweigh the benefits
12. Unintended consequences Higher capital gains tax – reduces new house building - worsens housing shortages /affordability Bank bail-outs – raises the problem of moral hazard Bio-fuel subsidy – causes food price inflation and hits the poorest in society Smoking ban – increases demand for and use of energy inefficient patio-heaters Windfall tax on North Sea oil and gas companies led to a huge fall in investment and exploration – just years before oil prices surged Tariffs on steel – hits domestic car and construction firms Targets for treating patients – leads to reduction in the quality of care e.g. Staffordshire General scandal
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14. Above all ...... Be strict on timing Develop one argument per paragraph + evaluate Use lots of supporting examples Make sure handwriting and diagrams are legible Use more paper rather than less Always finish with a reasoned final paragraph – but don’t repeat points already made Give the examiner plenty of current context
