Wednesday, 30 April 2014

A2 Economics exam practice 6EC04

Under timed conditions attempt the following from Quentin Brewer's revision pack:

page 65-65 Essay Q1 a and b and data Q3 - due 6th May

page 53 Globalisation and protectionism  - due 18th May

Mark yourself -Answers here:

http://www.hodderplus.co.uk/myrevisionnotes/a-level-Economics/index.asp

Bring in your responses for review.

AS Economics 6EC01 Final Preparation

Please use this long weekend to go over exam questions or content for 6EC01 and try to email me for any help you may need:

tgray@cherwell.oxon.sch.uk

Use 'my revision notes'
Answers here: http://www.hodderplus.co.uk/myrevisionnotes/a-level-Economics/index.asp

Monday 12 May Period 4 and 5 Pre exam final study - question and answer session on content and exam skills. Room 1

Tuesday 13 May 8am Pre exam breakfast (croissants and juice) - re-assurances and calm focus on what you need to do in the morning exam. Room 1

AS - 6EC02 Final exam preparation

Answer in full under exam conditions the January 2011 6Ec02 paper and use the following mark scheme to mark yourself for me to review and discuss with you in lessons next week:

http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/January%202011%20-%20MS/6EC02_01_rms_20110309.pdf

Surgeries - the following dates and times are open for you to drop in to room 1 and go over exam questions or content, please try to email me in advance when you are on study leave if you plan to come or email for any other help you may need:

tgray@cherwell.oxon.sch.uk

Weds 7 May 2-4pm
Weds 14 May 11-2pm
Thurs 15 May 9am-11
Fri 16 May 2-4pm
Mon 19 May 1-3pm

Use 'my revision notes'
Answers here: http://www.hodderplus.co.uk/myrevisionnotes/a-level-Economics/index.asp

Tuesday 20 May Period 1 and 2 Pre exam final study - question and answer session on content and exam skills. Room 1

Wednesday 21 May 11am-12 Pre exam talk - re-assurances and calm focus on what you need to do in the afternoon exam. Room 1


Tuesday, 29 April 2014

6EC02 Jan 2012 Model essay

With reference to Extract 2, evaluate the likely impact of higher inflation on THREE macroeconomic objectives

Introduction
Define Inflation - rise in general price level over time (2 marks). In Extract 2 UK inflation as measured by CPI is above target i.e. above £ % (2 data). Macro objectives are: low unemployment, low and stable inflation, sustained growth and avoiding a large and persistent trade deficit. In addition inequality and the environment can also be considered.

Higher inflation in the UK will make UK exports uncompetitive as Uk prices are rising around 3% on average whereas the euro countries prices are rising around 1.9% and therefore this will increase the UK's trade deficit (Point 2 marks and explained 2 marks). However the pound is getting weaker so this may make UK exports cheaper (2e) and also recovery elsewhere in the world e.g. USA might mean that other countries inflation is increasing as much as the UK's  (2e+).

Higher inflation in the UK above target will force the Bank of England to increase interest rates to curb this increase. As interest rates rise consumption and investment will fall resulting in recession. However the data says that the Bank of England are confident that inflation will fall back to 2% target (2e) so they will not increase interest rates (2e). However less consumption may help the environment (2e).

Higher inflation will erode the value of savings so rich people as savers will lose out and those on low income that have borrowed money will win, as they owe less in real terms, this may close the gap between the rich and the poor thereby reducing inequality. However the savings of rich people might be index linked to inflation thus preventing their savings from falling in value. (2e) Also low income people may not have their wages or benefits linked to inflation (index linked) so the cost of living may rise substantially for them. (2e)

Thursday, 24 April 2014

6EC04: Debt cancellation and Trade liberalisation model essay

June 2012 2b

Introduction
Debt cancellation in this case is the removal of part or all the Debt plus interest owed by a developing country (NIC or LEDC like Jamaica or Liberia) for a World Bank (IMF). Economic development can be measured by the HDI taking into account average incomes, health and education. Trade liberalisation includes the removal of protectionist measures opening up countries to free trade, global markets and competition. Trade liberalisation has come about through membership of the WTO – China joined 2001, Russia 2012 to ensure multi-lateral free trade.


First point
Debt relief is a key policy, even when looking at developing nations. For every $1 of aid given to LEDC or NIC nations, $13 is spent on debt repayments. Therefore it is clear that before these nations can develop sustainably, their debts must be written off completely. Their attempts to repay the debts, even when it is usually just the interest being paid off, are taking much needed funding out of their economies and putting it back into MEDC nations. By cancelling nations’ debts, funds would be freed up allowing them to invest in their education or healthcare systems and to ensure the removal of absolute poverty. However, it is possible that debt relief can have some negative impacts. The HIPC initiative run by the IMF required Jamaica to cut spending on healthcare and education in order to qualify for debt relief by showing fiscal discipline and preventing the need for future loans as well as, making the country more attractive for Investment. What is needed is no-strings-attached debt cancellation. Alternatively the depreciating US Dollar might mean that the IMF debt which is priced in US dollars become less burdensome for LEDC countries to service - so the world economy may become less polarised as the poorer countries are given a better chance to grow and develop. However other factors may be more significant for in influencing growth and development, for example the level of corruption or political instability in Uganda.



Three points selected from the following and evaluated:
Case for trade liberalisation:
• LEDCs have access to markets in developed countries: increased
exports and higher GDP, the proceeds of which may be used for
health, education, improved access to clean water
·         Increased competition might promote increase efficiency in LEDCs
• Incentive for multinationals to establish production plants in the
country so contributing to industrialisation
• Consumers benefit from lower prices and more choice
• More efficient use of resources – based on law of comparative
advantage leading to increased growth
• Enables LEDCS to become less dependent on aid
• Use of tariff diagram to illustrate impact of cut in tariffs e.g. on consumer surplus, producer surplus, welfare gains
However:
• Domestic firms in LEDCs may be unable to compete with TNCs
from developed economies
• Infant industries may be unable to survive
• Monopsony power of TNCs might result in exploitation of
resources of LEDcs
• Environmental arguments against free trade
• Problems of overspecialisation
• Dumping by developed countries

Other evaluative comments:
• It could be argued that without individual freedom, democracy
and the rule of law, economic development is not possible
• Difficulty of defining economic development precisely



Wednesday, 2 April 2014

Developing countries case study examples - Foreign Aid

HIV
One third of Zambians are HIV positive and 95% of treatment is funded by the US government if this was to be suddenly removed as suggested by Moyo there could be devastating effects upon the country's development as shown by its HDI ranking unless Zambia can become self sufficient or boost its own domestic savings. - Chris/Will

1 million children orphaned in Uganda and 90,000 deaths each year so reduced productive capacity as unable to go to School as parents can not pay for them. - Robin

Education
Germany has provided aid to Ghana to ensure free School education however with only half of teachers qualified the effectiveness of this policy in boosting productivity may be questioned. - Tenzin

Micro-finance
World Bank funded in Ghana to provide Schools and invested and  - Alex

Charity/NGO
NGO (charity) One - funded Hospitals in remote areas in Ghana because foreign aid from 1950s focussed on cities resulting in regional inequality. - Alex

Disaster relief - After the earthquake in 2001 Oxfam has provided emergency relief in the form of doctors and medical aid to Haiti. However within the first 48 hours 40,000 people died that could have been saved with the availability of surgery. Also the aid is only short term with healthcare centres set up in carparks so it may not have a lasting effect.
Disaster relief - In Pakistan - 20 million people suffered due to flooding in 2010 OXFAM provided relief to 2.4 million people and they did this again when flooding hit again in 2011. Oxfam has tried to pressurise governments to stop the flooding happening again. - Lizzy

Horizontal Inequity (Gender divide)
In Zambia 85% of GDP based on copper,  64% live in absolute poverty, Zambia literacy rates 86% males 74% females so discrimination gender inequality. Oxfam investing in Health, Education but also women's rights to access education. However in the global recession copper prices fell resulting i less funding for education as growth slowed down. - Will/Tom

200m aid India 600m space prog 68% live under $2 per day; exports only account for 15% of its GDP, 1/3rd live below global poverty line more than sun saharan africa per capita incomes doubled last 12 yearrs, growth 7% per year. - Robin/ Vince - India said don't want

Foreign Aid to Ethiopia
Directed into cities but only 13% access to safe water so aid is not tragetted at peopole who need it , poor travel system means people can't go into inner cities. In 2007 Economist reported foreign aid given to provide Schools but people can't get into cities so ineffective.  Harith

Infrastructure
East Africa has one of the highest transport costs and UK DFID is sent to spend £10.5 million on improvements in transport infrastructure in Tanzania, Ugandfa and Kenya which will reduce transport costs by 10% boosting exports by 25%. - Vince, source Guardian.

Military rule  - foreign aid
Pakistan grew more rapidly under military rule through rapid industrialisation and US foreign aid directed on to military expenditure that expanded the economy. However under democratic rule Pakistan has suffered sanctions and received an IMF bail out for $11.3 billion.

Disaster relief - In Pakistan - 20 million people suffered due to flooding in 2010 OXFAM provided relief to 2.4 million people and they did this again when flooding hit again in 2011.

Add your own example by commenting and adding your name.

Tuesday, 1 April 2014

AS ECONOMICS EASTER REVISION

Create your revision plan:

www.getrevising.co.uk

AS ECONOMICS
EASTER REVISION
Think PPF: Invest in your revision, you may have an opportunity cost  of less time consuming TV, video games now but in the long run, with better results, you will be able to consume more.

We expect you to submit past paper exam practice responses over the holiday - see below.
Resources
Have you got your revision notes well organised into these topic areas, with key term cards, mind maps, condensed notes?
Have you practiced an exam question from the Scheme of Work for each section?
Traffic lighted specification – prioritise study of red sections, seek advice and guidance before Holidays and on Revision day.
Attend the Easter Revision Session 
– Monday 7 April 6EC01 10am-12 and 6EC02 12.30-2.30 in Room 1 
Websites
Tutor2u.net
Economicshelp.org
Stephanomics
Edexcel Exam papers
Practice Multiple Choice questions under timed conditions for Unit 1 and 30 mark essays also under timed conditions for Unit 2 and 4-14 mark responses for both, go over mark scheme and email for any questions you got wrong and do not know why the answer given is the correct one. Alternatively do essay plans – but please ensure you practice a few full responses or alternatively produce essay plans. ALTERNATIVELY FOR SIMPLICITY COMPLETE JUNE 2010 6EC01 and 6EC02 papers. This needs to form the substantial evidence of your revision that I expect to see you emailing across to me over the Easter break.

6EC01 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC01_01_que_20100528.pdf

6EC02 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC02_01_que_20100607.pdf

Use the Mark Scheme to go over your responses and email practice questions or queries to:
PREPARE FOR SECOND ROUND FULL MOCK PAPERS IN FIRST WEEK BACK AFTER EASTER AND RESITS OF FIRST MOCK IF FAILED.

A2 ECONOMICS EASTER REVISION

A2 ECONOMICS
EASTER REVISION
Create your revision plan: www.getrevising.co.uk

Think PPF: Invest in your revision, you may have an opportunity cost  of less time consuming TV, video games now but in the long run, with better results, you will be able to consume more.

Resources
·         Use the following Revision tasks to add to your revision plan – remember to treat as small bite-size sections.
·         Update your traffic lighted specification – prioritise study of red sections, seek advice and guidance before Holidays and on Revision day.
·         Have you got your revision notes well organised into these topic areas, with key term cards, mind maps, condensed notes?
·         Revise key terms – know your definitions (2 DEF), use glossary.
·         Practice your key diagrams – be ready for diagram test after Easter; how can you illustrate current issues in the world economy or in theory of the firm: energy price capping and game theory, growth in BRICS.
·         If stuck on a topic make use of the Cherwell Economics You Tube Channel. http://www.youtube.com/user/CherwellEconomics/featured
·         Attend the Easter Revision Sessions 
     – Monday 7 April Room 1 AS 6EC01 10am-12 & 6EC02 12.30-2.30 
Tuesday 8 April A2 6EC03 10.00-12 and 6EC03 12.30-2.30pm
·         Ensure for 6EC04 you have good case study examples you can use per topic for UK, BRICS and most importantly LEDC - also do not forget the EU/Eurozone as a possible data/ context question.
Websites   Tutor2u.net    Economicshelp.org     Stephanomics         Martin Wolf in the FT
Edexcel Exam papers Try to practice exam questions from the Scheme of Work for each section? Select sections of exam papers based on Scheme of Work. The key is practicing the Edexcel style of writing.
Practice essays and multiple choice in timed conditions, alternatively do essay plans and email over to me – but please ensure you practice a few full responses and submit for marking. ALTERNATIVELY FOR SIMPLICITY PLEASE COMPLETE PAST PAPERS FOR EACH EXAM YOU ARE TAKING FROM THE JUNE 2010 SERIES AS BELOW. This is the key evidence I will want to see of your revision - so please email me practice attempts: tgray@cherwell.oxon.sch.uk
6EC03 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC03_01_que_20100623.pdf

6EC04 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC04_01_que_20100625.pdf

AS Res-its: If you are re-taking an AS exam 6EC01, practice as many Multiple Choice questions as possible, attempt past papers – email your overall score over and any questions that you have marked wrong and still do not get. For 6EC02 practice essays under timed conditions - remember simplicity and AS rather than A2 content so you do not run out of time.

6EC01 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC01_01_que_20100528.pdf

6EC02 JUNE 2010
http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/june2010-qp/6EC02_01_que_20100607.pdf
Use the Mark Scheme to go over your responses and email practice questions or queries to:
tgray@cherwell.oxon.sch.uk . I expect to see a regular stream of attempted parts to questions
PREPARE FOR SECOND ROUND FULL MOCK PAPERS IN FIRST WEEK BACK AFTER EASTER AND RESITS IF YOU FAILED YOUR FIRST MOCK ATTEMPT.