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Session 4: Unit 1 Data Response Questions Ray Powell

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).

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Session 4: Unit 1 Data Response Questions Ray Powell

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  1. Session 4:Unit 1 Data Response QuestionsRay Powell

  2. 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)

  3. 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.

  4. Extract A Identify two points of comparison between the changes in the price indices for coffee and tea over the period shown by the data in Extract A.(8 marks)

  5. 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

  6. The Data Response Question on Market 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: • Monopoly • Merit goods and Demerit goods • Public goods • Externalities • Income and wealth inequalities

  7. These diagrams can be used to illustrate ‘bad’ and ‘good’ Monopoly

  8. Merit Goods & Demerit Goods

  9. Public goods and private goods

  10. Practise drawing diagrams such as this one:

  11. And this one: Resource misallocation and negative externalities

  12. The effect of consumers possessing imperfect information (information failure)

  13. 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

  14. Type 2: Focusing on a particular type of government intervention

  15. A variant of Type 2, focusing on methods of government intervention to correct examples of market failure

  16. 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

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