If demand is price elastic, the tax causes a bigger percentage fall in demand. Bear in mind, failure to answer the question can lead to a very low mark. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. Link back to the question answer the question.
This structure was written with an average-writing-speed student in mind. It is a valid response, to deal with each separately, before considering both together. Tell us what the diagram shows, in general.
Higher investment could be offset by fall in consumer spending. Depends on market structure If markets are competitive, then we can expect prices to remain low.
This may explain over-consumption of demerit goods and under-consumption of merit goods. As a result, those with mortgages will have lower disposable income.
If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. However, if confidence is high, higher interest rates may not actually discourage consumer spending.
Also, consumers have less incentive to borrow and spend on credit cards. This is what we mean by evaluation. AD3 to AD3 Micro-evaluation 1. Draw and explain a diagram Draw the diagram which will best help you to answer the question. The significance of factors. And this puts an upward pressure on price.
If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
AD falls from AD1 to AD2 However, if there is already a slowdown in the economy, rising interest rates may cause a recession. Answer the question Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question.
Some students will be able to write more than others, because they write more quickly. Define a key word in the question Definition: Discuss the impact of Euro membership on UK fiscal and monetary policy?
Understand the question Make sure you understand the essential point of the question. It might be the same one you used in Part A. Higher interest rates increase the cost of borrowing. Explain something else the theory shows.
If necessary, you can write a one-sentence summary, which directly answers the question. Show that you understand that policy decisions are complicated. Define either another key word in the question if there is another one or a related key word Real life example: Time lag In the short term, demand for petrol is likely to be price inelastic.
Therefore, as a result, they can get zero for a question. What does it show in general. Link your example to the diagram.
At Price P1, the quantity demanded increases from Q1 to Q2. Nothing is wasted in the above example. The main thing is to avoid combining too many ideas into one sentence. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy. However, over time, consumers may find alternatives, e.
Make sure you also answer the question here. Behavioural economics In economics, we usually assume individuals are rational and seeking to maximise their utility.Tag: Economics Unit 2 Essay Question.
Posted on August 19, August 26, Unit 2 Essay Question: May Q2 Specific reference should be made to the exchange rate in your answer. A rise in interest rates will reduce (candidates may use either the level, or the rate of growth of) aggregate demand.
Unit 2 Essay Question: May. WASSCE / WAEC May / June Economics Past Question Paper 2 & 1 mi-centre.com May/June ECONOMICS 2 & 1 Essay and Objective 3 hours 50 minutes May/June Name. 2&1 Index Number.
THE WEST AFRICAN EXAMINATIONS COUNCIL West African Senior School Certificate Examination ECONOMICS 2 I Give onlv one answer to each question. An. Answer Selected Answer: (9,9) Correct Answer: (9,9) • Question 2 1 out of 1 points Recent studies indicate that this measure of ability is the best predictor of who will be a leader in an organisation.
Economics Model Essay 5 This question will be discussed in economics tuition in the sixth week of term 2. Discuss the economic effects of a redirection of government subsidy from petrol to education. Tips for writing economics essays Some tips for writing economics essays Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.
1. Economics Questions And Answers Economics Essay. Print Reference this. Disclaimer: Question 2: (a) Explain and illustrate using diagrams the difference between price and non price influences that affect the behaviour of a demand curve (3 marks); Answer: A demand curve shows the respective quantities of goods that consumers are willing.Download