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Economics HL paper 1 Time Zone 0 May 2016

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in 1a I mentioned how the different factors caused a misallocation of resources in the market and so causing the market failure situation. For those who did question 4b what did you wrote (I barely had time for doing this question :( )? 

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I did TZ2 questions 2 and 3 found the questions unbalanced tbh. My whole class did the same questions as me and all of us were expecting a much harder paper, we were quite relieved when we saw the fiscal question and the theory of the firm question.

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16 hours ago, sormaj said:

How did you answer the 3a) question, with automatic stabilizers? I drew a business cycle diagram with two curves (one with more recessionary and inflationary gaps and one that was 'flatter' + the potential output curve) and then kind of explained how unemployment benefits keeps consumption up in a recession and progressive income tax system keep consumption down in an expansion - but I am not sure if this was how you should do it? 

I explained it with AD/AS diagrams wherein during recession, AD shifts to the left but then increases again to the left due to the automatic stabilizers. I'm not sure if that's understandable but what you did seems okay as long as your justified the theory properly.

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9 hours ago, sormaj said:

They do reduce taxes, but the economics IB-book says that they should be considered as a market-based policy, not a government regulation. Which I don't agree with though because as the taxes regulate the market + they are impose by the government I wrote that they are a government regulation. Oh well... 

Actually different IB textbooks say different things and elsewhere in the textbook it says taxation is government regulation. So I mean, it really depends on the examiner and if they consider what the different textbooks say.

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Well will I be screwed if I wrote that abuse of monopoly power would lead to not being competitive and lacking in innovation thus leading to failure of allocative + productive efficiency? 

For gov't regulations I wrote tax as a non-government regulation because I used the Tragaekes textbook and I'm sure that it view regulations and tax differently. Did anyone wrote, for the regulation question, tax and regulation as two separate things and compare them with each other to make the argument? 

@simon9867: For 4b, I wrote that expansionary monetary policy (to stimulate growth and lower interest rates) and supply-side policies (increase gov't spending on education, infrastructure and technology) to encourage investment but investment is not the only good way to achieve faster economic growth. What about you?

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21 minutes ago, #teamnosleep said:

Well will I be screwed if I wrote that abuse of monopoly power would lead to not being competitive and lacking in innovation thus leading to failure of allocative + productive efficiency? 

For gov't regulations I wrote tax as a non-government regulation because I used the Tragaekes textbook and I'm sure that it view regulations and tax differently. Did anyone wrote, for the regulation question, tax and regulation as two separate things and compare them with each other to make the argument? 

@simon9867: For 4b, I wrote that expansionary monetary policy (to stimulate growth and lower interest rates) and supply-side policies (increase gov't spending on education, infrastructure and technology) to encourage investment but investment is not the only good way to achieve faster economic growth. What about you?

I think what u wrote about monopoly is fine, I wrote that abuse of monopoly power can result in excessive high prices leading to allocative inefficiency but I'm not sure if it's correct. 

I also treated regulation an taxes as two different things but most of my friends said that it was the same thing. I have checked several sources and read that they are different things as taxes are market based policies because its the market what changes. 

Regarding 4b I took a completely different approach as I didn't talk about gov policies but just talked about investment and also how the other components of the AD can trigger GDP to increase. I said that investment is a good thing as it can increase the LRAS and also because of the multiplier effect that can result in an even greater change.  My final conclusion was similar to yours as i I said that everything was important especially consumption. 

 

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22 hours ago, simon9867 said:

I think what u wrote about monopoly is fine, I wrote that abuse of monopoly power can result in excessive high prices leading to allocative inefficiency but I'm not sure if it's correct. 

I also treated regulation an taxes as two different things but most of my friends said that it was the same thing. I have checked several sources and read that they are different things as taxes are market based policies because its the market what changes. 

Regarding 4b I took a completely different approach as I didn't talk about gov policies but just talked about investment and also how the other components of the AD can trigger GDP to increase. I said that investment is a good thing as it can increase the LRAS and also because of the multiplier effect that can result in an even greater change.  My final conclusion was similar to yours as i I said that everything was important especially consumption. 

 

Wow, I just hope this year's mark scheme will favor our answers haha. How did anyone else in your class do? Did most of them answer the same questions as you? How did you find Paper 2?

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1 hour ago, #teamnosleep said:

Wow, I just hope this year's mark scheme will favor our answers haha. How did anyone else in your class do? Did most of them answer the same questions as you? How did you find Paper 2?

Yeah, most of us did the same questions as we hadn't cover question 3a in class so we had no idea (some friends decided to do that question without really knowing what to write hahaha). I personally found paper 2 much easier than paper 1 (did question 3 (Korea) and 4 (Singapore) and u?. On paper 3 I think I screwed it because of the time, how was your paper 3?.

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12 hours ago, simon9867 said:

Yeah, most of us did the same questions as we hadn't cover question 3a in class so we had no idea (some friends decided to do that question without really knowing what to write hahaha). I personally found paper 2 much easier than paper 1 (did question 3 (Korea) and 4 (Singapore) and u?. On paper 3 I think I screwed it because of the time, how was your paper 3?.

Oh really? I sense some people like to live their lives dangerously :D. How do you even write without not knowing what to write for Paper 1? Yes, Paper 2 is definitely easier, I did the case on Indonesia and Singapore, however I found the question d for Singapore quite tricky as there is not much to talk about. I also screwed Paper 3, ran out of time so I did not have time to complete it all. But you should be fine if your IA is good.

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I chose question 1 and 4

for 4a I was not 100% sure so I just included the diagram for the LRAS curve and explained the keynesian prespective including spare capacity and all that material

for 4b I took a slightly different approach from what I have read. I concentrated on investments for the majority of the answer evaluating pros, cons and how the shift the PPC. I did not really talk about AD and the multiplier because the questions was on economic growth so I concentrated on the quantity and quality of factors of production. Finally I included alternative perspectives and solutions. If I included government investment in education or health care would that be wrong? (Is it considered government spending or investment?)

 

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5 hours ago, ibstudent081099 said:

I chose question 1 and 4

for 4a I was not 100% sure so I just included the diagram for the LRAS curve and explained the keynesian prespective including spare capacity and all that material

for 4b I took a slightly different approach from what I have read. I concentrated on investments for the majority of the answer evaluating pros, cons and how the shift the PPC. I did not really talk about AD and the multiplier because the questions was on economic growth so I concentrated on the quantity and quality of factors of production. Finally I included alternative perspectives and solutions. If I included government investment in education or health care would that be wrong? (Is it considered government spending or investment?)

 

I also talked about the LRAS but not so much as the question asked about a fast economic growth and that mainly implies an increase in the AD as the LRAS takes more time. Regarding the question about government I think they are pretty much the same, as it's the investment carried out by the government and not the firms. Do you know if they will penalize me a lot if i didn't define investment in the introduction?. 

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1 hour ago, simon9867 said:

I also talked about the LRAS but not so much as the question asked about a fast economic growth and that mainly implies an increase in the AD as the LRAS takes more time. Regarding the question about government I think they are pretty much the same, as it's the investment carried out by the government and not the firms. Do you know if they will penalize me a lot if i didn't define investment in the introduction?. 

I don't think very much, if the answer is well structured anyways it should't be a problem.

I really hope I score decently even though I only talked about supply.....😓

 

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