Bees don’t just make honey!

1. Bees don’t just make honey! Feedback on exam practice

2. Aims of Revision Guide • For you to understand the exam board marking criteria – so that you can boost your marks/grades. • To further your understanding of K, Ap, An & Ev skills needed • To show you the range of terminology that you have covered and NEED to use in your answers! • Essential to include diagrams where relevant!

3. 1) “As a result almond prices are soaring to over $3 per pound.” With reference to the data and using a supply & demand diagram, explain why this happened. (7 marks) • Diagram…. Must show • original equilibrium (1) • Inward shift in S (1) • New equilibrium (1) • Movements on axis (-1 if not present) • LABEL ALL CURVES! – no labels = no marks! Worth 3 marks

4. Explanation…. Must explain why prices rise – using ec theory … Too much waffle – re-using case study story Ec theory Market shortage: show on diagram Consumer surplus: show on diagram Ec pressures due to shortage means that prices do rise! 1) “As a result almond prices are soaring to over $3 per pound.” With reference to the data and using a supply & demand diagram, explain why this happened. (7 marks) What does this look like?

5. 2. Comment on the likely elasticity between almonds and hazelnuts. (4 marks) • Cross price elasticity – identify key elasticity & define/formula (1) • Substitutes for each other (1) • Positive elasticity (1) • Because – written explanation ideally using ‘numerical’ example… (1)

6. 3. What can you learn from the passage about the price elasticity of supply for crops? (5 marks) • PeS formula or definition (1) • Inelastic PeS (1) • Reason … because …(1) • Diagram showing an inelastic S curve – show the effect (1) • EVALUATION…. 2 marks…. • Time it takes to recover from the mite – might make the PeS more inelastic • Impact of mite on industry in long run – if bee keepers

7. 4. Assess the likely impact of the rise in price of almonds for consumers of confectionary products. (10 marks) • What do you think ‘assess’ means? • …to what extent will there be an impact????

8. 4. Assess the likely impact of the rise in price of almonds for consumers of confectionary products. (10 marks) Knowledge & Application = 6 marks max • Impact = higher costs (1) which will be most likely passed onto consumers as higher prices (1) • Derived demand – not many people D almonds – but they are needed for other goods – i.e. complementary link between the two goods. • Impact on D for hazelnuts (1) – show on diagram,  D(3) • Impact could be a substitution effect (1) as consumers swap to alternative products • and/or an income effect (1) if they continue to consume … but lesser quantities (1) Evaluation = 4 marks

9. 4. Assess the likely impact of the rise in price of almonds for consumers of confectionary products. (10 marks) Knowledge & Application = 6 marks max • Reference to consumer surplus (1) and diagram (3) • Reference to producer surplus (1) and diagram (3) • Or higher costs may be absorbed by the business and a fall in profits (1) for the businesses, which could mean an incentive to work more productively efficient (1) – or cut back on other costs e.g. labour (1) – so the price might stay the same…. Evaluation = 4 marks

10. 4 marks – need to show judgement – assess the impact……. (2 marks per comment developed) EVALUATION • Depends on the PeD elasticity whether consumers would react to the change in price, whether the brand name/customer loyalty will help/advertising • Depends on the YeD – whether a normal or luxury good • Depends on how easy it is to substitute almonds in the recipe! • CPeD diagram… depends on the elasticity and how close other substitutes are (hazelnuts) • Depends on the level of competition in the confectionary market … • Depends on the frequency of the purchase of the good – links to elasticity PeD & YeD

11. 5. Evaluate two other likely consequences of the spread of the varroa mite in bees. (10 marks) Knowledge & Application = 6 marks max • Increase in mite = needs more investment in ‘cure’ – an increase in cost which further reduces S • Possible extinction – need to look at alternatives • Increase in the price of hives rentals – due to increase D – a further increase in costs – less incentive to S honey! (Diagram…) CPeD – complementary products. • Less bees = less honey • Less cross pollination for other crops – mainly fruit – means more imports into the country • Increase in investment in scientific research to find cure. Evaluation = 4 marks

12. 6. Assess the likely success of a state subsidy for honey production (12 marks) Knowledge & Application = 6 marks max • Up to 3 marks for a written explanation • 1 mark per relevant point + 2 for development • 3 marks for relevant diagram • 6 marks for evaluation Evaluation = 6 marks

13. Subsidy = increase in supply (1) Diagram to show this (3) Relevant points include Income for beekeepers to invest in replacing bee stock/hives Subsidy will help them ‘cover’ the increase in costs Might encourage new beekeepers – increase supply 6. Assess the likely success of a state subsidy for honey production (12 marks) Knowledge & Application = 6 marks max Evaluation = 6 marks

14. 6. Assess the likely success of a state subsidy for honey production (12 marks) Knowledge & Application = 6 marks max • Evaluation issues… • Opportunity costs – is it right to subsidise the beekeepers or should the govt invest in scientific research? • If no cure a subsidy won’t help as bees will eventually be extinct! • How likely is it that new beekeepers will start up in business - very specialised work. Evaluation = 6marks

15. Overall – key skills • You need to start with definitions or formulas more! • Vital to label diagrams clearly/accurately. • Must read over the elasticity issues – its not just the calculations but application as well. • Evaluation marks – to gain B & A’s.

16. A*’s for the future • In your 1st exam – you need to get into the 80% UMS this year in both papers • In A2 – need to be in the 90% UMS boundaries • RESIT marks don’t count for an A*!