Monday, January 7, 2013

Highly Possible Questions for GCE Edexcel Economics Unit 1: Markets: How They Work and Why They Fail (Data Response)


Before I start, there are few key details that each candidate is required to know:
a)      The new syllabus for GCE Edexcel Economics Unit 1 started in year 2008. That means, the very first set of Unit 1 paper was in January 2009. As such there is no need to hunt for Unit 1 papers anytime earlier than that

b)      COMMODITY is by far the most popular exam question. It appears with the highest frequency and is also recognised as the no.1 choice for candidate. (June 2009-Q10 Rice), (January 2010-Q9 Petrol), (May  2010-Q9 Food), (January 2011-Q9 Sugar), (June 2011-Q10 Copper), (January 2012-Q9-Beef) and (June 2012-Q10 Cotton)

c)       Before January 2011, the marks are very irregular despite the total is still 48 marks for Section B. As such it has created few problems for candidates worldwide. First, it is hard to decide how many marks are supposed to be allocated for evaluations. For instance, I have seen that an 8 marks question has 4m for KAA and 4m for evaluation and in another case 6m for KAA and 2m for evaluation. Second, due to such nature, the questions were much harder to predict back then despite it still can be done

d)      Commencing from January 2011, the Examination Board has decided to standardise the marks as the following: (a) to (e) as 4-6-10-14-14 or another possibility is 6-8-6-14-14. Another good news is, candidates no longer need to get themselves confused over which questions that need to be evaluated and what are those evaluation keywords (Justify, Evaluate, Discuss, Assess, To what extent and Examine). This is because, STRICTLY ONLY question (c), (d) and (e) that need to be argued

e)      The good news is, most of these questions have STANDARD ANSWERS and EVALUATIONS

What will the most possible line-up questions for this 15th January 2013 Unit 1 examination?

For a COMMODITY question,
Question (a) (4m)
  • Demand and supply diagram (only 1 curve shifts).  Reference (1m), Diagram (2m) and short explanation (1m)
  • PED. Definition (1m), Mention about nature (most likely to be inelastic) (1m). Reference (1m) and diagram (1m)
  • PES. Definition (1m). Mention that supply is inelastic in short run (1m) and reference (1m). Mention that long run usually more elastic (1m)

Question (b) (6m) 
  •  Demand and supply diagram (6m) (both curves shifting, usually demand increases but supply falls). Reference (1m). Diagram (4m). Explanations for both movements (2m)
  • YED (6m). Define YED (1m). Mention that normal good has positive YED (1m) and inferior food negative YED (1m). Decide the status of that commodity (1m) and reference (1m). Diagram (1m)
  • XED (6m). Define XED (1m). Mention that both are substitutes (1m) with reference (1m). Positive XED (1m). Explain their relationship (1m). Diagram (1m)

Question (c) (10m)
  • PES. Define (1m). Explain price inelastic of supply/ price elastic of supply (1m). Short run inelastic (1m) and reason (1m). Long run elastic (1m) and reason (1m). Give two evaluations (2m + 2m
  • YED. Define (1m). Mention normal good has YED > 0 (1m) and inferior good has YED < 0 (1m). Identify status (1m) and reference (1m). Diagram/ sample calculation (1m). Evaluations (2m+2m)

Question (d) (14m)
  • ECONOMIC EFFECTS of increase in production cost/ higher tax/ greater subsidies/ introduction of minimum guaranteed price. Diagram (2m to 4m depending on the details added to the curves). Economic effects (give 2/3, 4m to 6m). Evaluations (2m+2m+2m or 3m+3m)

Question (e) (14m)
  • Buffer stock analysis. Diagram (4m). Explain what will happen during good and bad harvest (4m). Evaluations (2m+2m+2m or 3m+3m)
  • External costs from consumption and production. Define external costs (2m). Diagram (4m). Explain the 3rd party effect from consumption (1m) and production (1m). Evaluations (2m+2m+2m or 3m+3m)
 I will blog about other possible questions very soon. If there are queries, do not hesitate to ask. Cheers. Good night!!

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