Summer Glau Posted May 17, 2011 Report Share Posted May 17, 2011 I found paper 1 to be pretty good. I did question 3 about exchange rates, which seemed to be pretty popular with my class. For part B I wrote about inflation that could be caused by the depreciation of the exchange rate. I could have written more but I didn't have the time So what about you guys? What questions did you guys do/what did you talk about/how was the exam overall? Reply Link to post Share on other sites More sharing options...
nobrega Posted May 17, 2011 Report Share Posted May 17, 2011 (edited) same here, #3 talking about depreciation, in part a i talked about a fall in the demand, and in part B i also talked about the inflation cause and also that AD increases while SRAS decreases because it costs more to import. HOwever i missed out on some things, but i found it to be pretty straight forward Edited May 17, 2011 by Summer Glau no text speak Reply Link to post Share on other sites More sharing options...
-Carl Posted May 17, 2011 Report Share Posted May 17, 2011 (edited) Paper 1 wasn't too bad. I answered the first question about market forces and government intervention to allocate resources in a mixed economy. Talked about how in reality mos economies are mixed, and how there is some form of free market allocation, such as price which has a rationing, signalling and incentive function. And then government intervention such as maximum, minimum, buffer stock schemes & commodity agreements due to the free market not always leading to the best situation for producers and consumers. Also mentioned market failure/externalities as markets may fail if left to act freely and the government would have to intervene to reallocate resources.. talked about demerit goods. For B, not that great.. Anyone else find there wasn't much to talk about? I mostly talked about Tradable Emission permits and evaluated how market forces don't really reduce pollution levels if left to act on their own.. due to monopolies which may purchase most of them and this may still lead to externalities..etc . Moreover, I talked about taxing and or/banning polluting firms and evaluated those as well.. Overall.. pretty fair. Edited May 17, 2011 by Summer Glau do not discuss paper 2 yet :P Reply Link to post Share on other sites More sharing options...
Summer Glau Posted May 17, 2011 Author Report Share Posted May 17, 2011 same here, #3 talking about depreciation, in part a i talked about a fall in the demand, and in part B i also talked about the inflation cause and also that AD increases while SRAS decreases because it costs more to import. HOwever i missed out on some things, but i found it to be pretty straight forward It's OK if you miss a few things, it's not possible to talk about everything that could possibly happen I didn't talk about a decrease in SRAS but it makes sense, since foreign inputs will cost more due to depreciation. Yeah I also thought that the exam was pretty fair. Paper 1 wasn't too bad. I answered the first question about market forces and government intervention to allocate resources in a mixed economy. Talked about how in reality mos economies are mixed, and how there is some form of free market allocation, such as price which has a rationing, signalling and incentive function. And then government intervention such as maximum, minimum, buffer stock schemes & commodity agreements due to the free market not always leading to the best situation for producers and consumers. Also mentioned market failure/externalities as markets may fail if left to act freely and the government would have to intervene to reallocate resources.. talked about demerit goods. For B, not that great.. Anyone else find there wasn't much to talk about? I mostly talked about Tradable Emission permits and evaluated how market forces don't really reduce pollution levels if left to act on their own.. due to monopolies which may purchase most of them and this may still lead to externalities..etc . Moreover, I talked about taxing and or/banning polluting firms and evaluated those as well.. Overall.. pretty fair. The moment I looked at question 1 I knew I wouldn't be able to say much about it so I skipped it But a couple of people in my class did this question and they mentioned similar things that you mentioned. Reply Link to post Share on other sites More sharing options...
-Carl Posted May 17, 2011 Report Share Posted May 17, 2011 Yeah #1 was definetly a thinker, and probably the hardest question on the exam. I think many people were thrown off by the ''mixed economy'' part but it wasn't that bad a question if you thought clearly about it . However, #2 and #3 did not look appealing at all. For question #3.. I probably would have talked about import-push inflation causing it to depreciate an increase in supply of the currency due to investing in foreign countries, buying foreign currency etc.. or a decrease in demand for the currency due to various factors.. Which would in turn decrease the value of the currency. But I didn't think there would be much other to say.. also I wasn't 100% sure on what I should have labelled on the axis and so I evaded it. Probably the most popular question and the easiest in terms of being straight forward.For question #2.. the more I think of it.. the more I think I should have answered it. Didn't know too much about distribution of income, but I probably would have said lowering taxes would create more disposable income and thus more consumption among consumers, in terms of firms, this would create the incentive to invest, create more employment etc.. In terms of evaluation, could have mentioned inflationary pressures and a worsening current account deficit.. oh well. Reply Link to post Share on other sites More sharing options...
Summer Glau Posted May 17, 2011 Author Report Share Posted May 17, 2011 Haha yeah my second choice question would have to be number 2. It didn't look that straight forward in the exam, it just made me think of the income tax systems (progressive, regressive, etc) which I didn't study very well but I now realize that I didn't even have to mention that at all I didn't focus on section 5 a lot so that eliminated #4, and the wording 'allocation of resources' always confuses me for some reason so I eliminated that too. On a currency diagram you always label the vertical axis with the price of some currency expressed in terms of another (ie Price of Canadian dollars in euros) and the horizontal axis is just labelled Quantity. You could also mention that domestic importers are negatively affected since it is more expensive to buy imports, domestic exporters win because exports seem cheaper to other countries so they will buy more exports, etc. I'm now curious to know if anyone attempted the development economics question...nobody in my class did that one Reply Link to post Share on other sites More sharing options...
-Carl Posted May 17, 2011 Report Share Posted May 17, 2011 Yeah, no one in my class answered the developmental question. The teacher more or less told us it was no use reading it. They're changing the examination formation 2013, so candidates may need to answer a developmental question I guess we were lucky . In terms of allocation of resources, it means the distribution of the factors of production (land, labour, capital management) I really should have defined that in the esasay.. I guess I kind of implied it by talking about the three questions of the basic economic problem though Reply Link to post Share on other sites More sharing options...
Lawliet Posted May 17, 2011 Report Share Posted May 17, 2011 Geez, since there is no other Economics SL thread out there yet, I guess I'll simply post here although I seem to have TZ2.. I could have written more but I didn't have the time This is exactly my biggest problem with P1.. Really, it's never the questions, there will always be at least one that I can manage to do. But the time is always such an amazingly big issue for P1 for me.. Uff, I could have written sooooo much more for evaluation, but oh well.. I guess they take the time constraint into consideration.. Oh, and just as you sad, no one in our school picked the developmental thingie question in P1 either.. PS: Say, is that Olivia Wilde in your avatar/profile pic thingie? That has been bugging me for a while.. Reply Link to post Share on other sites More sharing options...
Summer Glau Posted May 17, 2011 Author Report Share Posted May 17, 2011 Yeah I heard that the 2013 bunch will have to answer a development economics question on paper 2 or something It sucks that IB is taking away the choice that used to exist, but I guess they have too many people not caring about section 5 and they think that people are missing out on being globally-minded by not studying that section, I don't know really Yep I agree that we are lucky. Oh really that's all allocation is? Wooooow I only learned that now hehe. And yes it's good to define economics terms in the question, but it's not a huge mistake. @Lawliet: Yeah time is an issue for me, and I always spell things wrong/write the opposite of what I was thinking so I have to cross a lot of stuff out which wastes time. No, the person in the picture is Summer Glau And you can start a thread for TZ2 if you want, I'm sure someone in TZ2 is willing to discuss it too Reply Link to post Share on other sites More sharing options...
dsds1000 Posted May 17, 2011 Report Share Posted May 17, 2011 I answered question 2 about direct and indirect taxes. I talked about how the decreased taxes are usually favored by Neo-Classical economists who don't believe in government intervention. So decreased taxes results in more consumption etc. The part b) was a little bit harder because I don't think I evaluated to well, but whatever I think did well enough. I should have studied trade, question 3 seemed easy if I knew exchange rates. Overall, an average econ paper. Reply Link to post Share on other sites More sharing options...
Summer Glau Posted May 17, 2011 Author Report Share Posted May 17, 2011 I talked about how the decreased taxes are usually favored by Neo-Classical economists who don't believe in government intervention. Isn't decreased taxes a form of government intervention though? Reply Link to post Share on other sites More sharing options...
sashaerin Posted May 18, 2011 Report Share Posted May 18, 2011 I did #1 and so did alot of people in my class. For b we all basically said that it was to no extent, as market forces are unable to prevent negative externalities. I basically said that government intervention was the only way in which one can reduce market failures, like through tax on production and consumption to reduce demand, advertising etc. Reply Link to post Share on other sites More sharing options...
Patel108 Posted May 18, 2011 Report Share Posted May 18, 2011 I did #3 on Paper 1. I thought it wasn't that bad, but I didn't really organize my thoughts all well. Plus, I got confused with which graphs to draw. I drew an inflation with all the aggregate demand stuff, but then I got confused because the graph for depreciation only had regular demand and supply, but I don't know . I also drew a money supply graph in there somewhere. I kind of forgot what I did though. I honestly though # 2 would have been easier, but I forgot how direct and indirect taxes affected aggregate supply. Oh well...overall I think I did okay though. Reply Link to post Share on other sites More sharing options...
-Carl Posted May 18, 2011 Report Share Posted May 18, 2011 (edited) I did #1 and so did alot of people in my class. For b we all basically said that it was to no extent, as market forces are unable to prevent negative externalities. I basically said that government intervention was the only way in which one can reduce market failures, like through tax on production and consumption to reduce demand, advertising etc.Same story.. how long was your evaluation though? I felt mine was a bit weak/short. I talked quite a bit on tradable emession permits and mentioned that they're used to control CFCS in the USA. Also, I mentioned that they'd be ineffective in reducing environmental pollution as this may create respiratory problems for consumers or other external costs.. Moreover, this won't actually stop levels of pollution, pollution will still occur, some firms will just pollute more than others.I talked about how it would be difficult for governments to decide on an allowable level of pollution for each year and split these into permits and that firms would likely want them to be as high as possible putting pressure on governments.. etc. I don't think I went as far as saying market forces cannot reduce "all negative externalities" though.. I stuck mainly to environmental pollution, stated by the text and how that was a type of negative externality. I think what they were really looking for was the use evaluation on Tradable emission permits as that's the only "market based" solution free markets could use.. but as pointed it would not be effective. Then at the end I evaluated banning/taxation by gov'ts. What did you write in part a? Edited May 18, 2011 by -Carl Reply Link to post Share on other sites More sharing options...
lighthuntz0r Posted May 18, 2011 Report Share Posted May 18, 2011 Only one guy in my school did #4. It's silly how you can completely omit studying a part of the syllabus and still be 99% sure that you can get a 7 Reply Link to post Share on other sites More sharing options...
dogmatichurricane Posted May 18, 2011 Report Share Posted May 18, 2011 I talked about how the decreased taxes are usually favored by Neo-Classical economists who don't believe in government intervention. Isn't decreased taxes a form of government intervention though?Decreased taxation can also fall under an interventionist supply-side policy which is essentially Neo-Classical economics. Reply Link to post Share on other sites More sharing options...
lighthuntz0r Posted May 18, 2011 Report Share Posted May 18, 2011 Decreased taxation can also fall under an interventionist supply-side policy which is essentially Neo-Classical economics.Actually market-oriented? Reply Link to post Share on other sites More sharing options...
dogmatichurricane Posted May 18, 2011 Report Share Posted May 18, 2011 Decreased taxation can also fall under an interventionist supply-side policy which is essentially Neo-Classical economics.Actually market-oriented?Apologies! I seem to have flushed out every little bit of economics that I learned immediately after the exam. Reply Link to post Share on other sites More sharing options...
dsds1000 Posted May 18, 2011 Report Share Posted May 18, 2011 I talked about how the decreased taxes are usually favored by Neo-Classical economists who don't believe in government intervention. Isn't decreased taxes a form of government intervention though?Sorry I meant to say Austrian economists. Reply Link to post Share on other sites More sharing options...
nobrega Posted May 18, 2011 Report Share Posted May 18, 2011 I did #3 on Paper 1. I thought it wasn't that bad, but I didn't really organize my thoughts all well. Plus, I got confused with which graphs to draw. I drew an inflation with all the aggregate demand stuff, but then I got confused because the graph for depreciation only had regular demand and supply, but I don't know . I also drew a money supply graph in there somewhere. I kind of forgot what I did though. I honestly though # 2 would have been easier, but I forgot how direct and indirect taxes affected aggregate supply. Oh well...overall I think I did okay though. Ya the inflation graph with AD and SRAS was for part b, where you could also have used neo-classical to talk about how at LRAS there is full employment. The depreciation is simply just a shift to the left in demand on a supply and demand graph. its fine man you seem to have included all of the necessary stuff Did anyone refer to other countries and ceteris paribus in their paper 1? Reply Link to post Share on other sites More sharing options...
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