Protectionism is justified in terms of economic theory. Level 3 answers are also able to clearly illustrate the pricing setting behavior of a perfect. Q4 Discuss the most appropriate policies that a government could adopt to encourage both actual and potential economic growth. In this case, the protection measures by the EU is not economically justified. In retaliation EU imposed quotas on textile imports from China.
UK fuel market is oligopolistic. Crucially, FDI was encouraged, partly by the provision of complementary infrastructure and labour skills, partly by a tax friendly policy to new foreign investment, and partly by a flexible labour market. For example, there may be many African countries whose CA differs from ours dramatically but who are not major customers; this is because they are poor. Implications of developments in modern technology like faster broadband internet connections on entry barriers and market structure: This begs the question which you must address of where does the improved current account performance come from and how can policy influence it? CSQ2 a i It appreciated. If there is poor use of economic terminology, e.
CSQ2 a i It appreciated.
Establish what is meant by? Cade a case of dumping. Define and explain both actual and potential economic growth may use AD-AS model or PPC Explain how actual and potential economic growth may be achieved increasing the components.
Introduction – A brief explanation of how market forces can achieve allocative efficiency – Highlight the right assumptions for the price mechanism to work well – The equilibrium outcome of the perfect market would meet the conditions required ie. In such a situation, equilibrium price and quantity do not respond to changing costs which results in allocative inefficiency. The demand for recorded music will rise DD shifts right by a large extent.
H2 Economics Case Study Questions
Different economies due to their different nature of the economy and constraints will require a different policy mix to encourage both actual and potential growth. Imposition of tariffs and quotas are examples of protectionism. In such cases we do not import and export identical goods; we import and re-export what we really export is the services of the PSA! USAs rising current account deficit is seen in figure 1 and this is to be contrasted with Chinas big rise in foreign reserves.
They can practise monopoly pricing which causes allocative inefficiency. Hence, allocative inefficiency is reduced. This represents allocative inefficiency as natural gas is not allocated to the highest bidding market. Explain that there is a range of market structures. Body There is a need to contrast between a market structure with strong barriers to entry versus one. Infrastructure to improve the port, the airport, land transportation and then telecommunications was embarked upon.
Case of dumping Need to know: Students are required to possess some knowledge of actual policies undertaken by the Singapore government to address these market failures. Students will have to consider the impact on two markets ie recorded music and associated products.
To score Level 3, answers should consider the behavior of Oligopoly versus other types of market structures. This begs the question which you must address of where does the improved current account performance come from and how can policy influence it?
Level 3 answers are also able to clearly illustrate the pricing setting behavior of a perfect competitive firm in the short run and go on to explain how due to the lack of entry barriers, that the relative ease of entry and exit of new firms led to a situation of only normal profits in the long run.
This would result in a shift in the supply curve for stuyd gas to the sfudy. Assess how the markets involved might be affected by these developments. Evaluate that this is not the reason: Hence, it is likely that the demand for electricity has increased despite an increase in its own price as households and firms will be substituting natural gas with electricity due to the greater increase in price of natural gas compared to electricity. If anything it is the other way round the BOP allowed the ex rate to strengthen.
Competition helps to reduce market power of individual energy firms. We know it cuts into current living standards. Large firms can produce at lower average cost. It has difficulty explaining intra-industry trade unless we take differing brands of products as different goods.
As such, the switch to electricity will only occur o if the changes in electricity and natural gas prices result in significant absolute price differentials o the price differential is expected to be persist o consumer durables and capital goods using electricity are competitively priced e Discuss whether the market for fuel in the UK displays economic efficiency or whether it provides an example of a market failure.
Answers to H2 Economics GCE a Level Exam
Although electricity comprises a higher weight in the UK Retail Prices Index as seen in Table 2, this proportion has been falling over the period. Students should understand that the behavior of firms largely depends on the type of market structure that they fall under. Economic welfare is not maximised.