session 4: unit 1 data response questions ray powell
DESCRIPTION
Session 4: Unit 1 Data Response Questions Ray Powell. Questions on Markets & Market Failures. Unit 1 data response question papers usually contain 2 questions covering: Question 26: a market (or markets) Question 27: market failure(s). - PowerPoint PPT PresentationTRANSCRIPT
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Session 4:
Unit 1 Data Response Questions
Ray Powell
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Questions on Markets &Market Failures
Unit 1 data response question papers usually contain 2 questions covering:
Question 26: a market (or markets)
Question 27: market failure(s)
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How Data Response Questions are structured in the Unit 1 & Unit 2 exams
[01] Define the term
[02] Compare (or possibly identify)
[03] Explain
[04] Evaluate (or possibly assess, or possibly Do you agree? . .Justify your answer.
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Identify two points of comparison between the changes in the price indices for coffeeand tea over the period shown by the data in Extract A. (8 marks)
Extract A
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Part [03] of a Data Response Questionon a Market
Part [03] of a question on markets may require candidates to perform 3 tasks:
• Draw an S & D diagram to show an equilibrium
• Identify a factor shifting the S or D curve
• Illustrate and explain the effect of the shift
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• Monopoly• Merit goods and Demerit goods• Public goods• Externalities• Income and wealth inequalities
The Data Response Question onMarket Failure
Usually one of the two Data Response Questions in the Unit 1 exam is on a well-defined market failure. The main types of market failure are:
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These diagrams can be used to illustrate ‘bad’ and ‘good’ Monopoly
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Merit Goods & Demerit Goods
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Public goods and private goods
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Practise drawing diagrams such as this one:
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And this one: Resource misallocation and negative externalities
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The effect of consumers possessing imperfect information(information failure)
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Returning to the final part of a Unit 1 data response question, three types of format are commonly used
Type 1: Focusing on the role of market forces
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Type 2: Focusing on a particular type of government intervention
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A variant of Type 2, focusing on methods of government intervention to correct examples of market failure
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Type 3: Questions asking for an evaluation of the case for and against government intervention to deal with a problem, but without specifying any particular type(s) of intervention