H2 ECONS 2008 CASE STUDY

In fact price of natural gas close substitute of electricity has increased more than price of electricity between and This would result in a shift in the supply curve for natural gas to the right. But protection might still be justified as long as it is only for the short term to enable the industry to decline gradually rather than letting the industry collapse which will create structural unemployment, given that Indian workers are likely to be occupationally immobile and require time to acquire new skills to work elsewhere. However, there remains economic inefficiency in the market due to relatively small number of energy firms in the market and the business strategies employed. Ensure there are proper labeling. This involves increasing expenditure on human capital and strategic alliances with firms that can make use of such labour, by offering ‘supply side support’. Students will have to consider the impact on two markets ie recorded music and associated products rather than to consider them as one Developments in modern technology implies a rise in SS SS shifts right and hence falling prices of iPods and MP3 players Impact on recorded music:

Factor endowments in Singapore have changed over 40 years. Although electricity comprises a higher weight in the UK Retail Prices Index as seen in Table 2, this proportion has been falling over the period. Policies directed at the capital account could include interest rate policy, taxation policy related to FDI and complementary infrastructure and other S-side policies such as employer CPF levels. Trade in goods increased o keeps prices low – freer movement in capital flows o increase in FDI – freer movement in labour flows o increased factor mobility? We will export and import largely in accordance with CA, perhaps moderated by transport costs, and might therefore be expected to export chiefly to, and import chiefly from, those countries where CA differs most from ours. Ensure there are proper labeling.

h2 econs 2008 case study

If anything it is the other way round the BOP allowed the ex rate to strengthen. This shows significant intervention by Chinas central bank to sell the yuan in the process acquire foreign reserves in order to keep the yuan undervalued, thus suggesting that Chinas govt is a currency manipulator. Critically you must say what policy instruments need to be used and enhanced to achieve these three eckns.

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In addition, this new pipeline meant that it is now more responsive for the quantity supplied to react to changes in price. Factor endowments in Singapore have changed over 40 years.

Holding other factors constant, an increase in price of other fuels will result in an increase in demand of electricity – Applying the concepts of PED and CED in context of case data? USA blames its trade deficit partly on undervalued yuan.

Published on Oct View 3. The growing doubt is not well founded.

Answers to H2 Economics GCE a Level Exam

Telecommunication companies having market power as a result of imperfect information. So concept of Exy will be relevant here.

h2 econs 2008 case study

A Level – Paper This might be with the help of the Chinese government through, for example, subsidised rents and tax exemption. Take note that this is not a conflicting objectives essay A generic casr theoretical discussion will not be sufficient to address the phrase the most appropriate policies in the question.

2008 A-Levels H2 Economics Case Study

For answers that are very descriptive and only able to 2008 the link between barriers to entry and pricing decisions, it will at most score a Level 2 mark. This will reduce the price of exports to EU markets.

Answer should be based on the context of the case material as far as possible. This would result in privatised energy firms focusing on profit maximisation objective.

To assess whether the low prices of imported goods could be considered as dumping, I would need to consider whether the low prices were a result of low input costs in the exporting economy, which might simply reflect comparative advantage, or whether it was a deliberate policy to sell below marginal cost.

H2 Economics Case Study Questions

Case of dumping Need to know: The implication is that the DD rise DD shifts right and hence qty will rise by a more than proportionate amount. Hence econa fall in prices of iPods, MP3 players will increase the DD for recorded music since they are close complements. Good answers would have discussed some of these constraints and limitations in the main body and may reiterate and reinforce the xtudy they are making by focusing on at least 2 economies to round up the discussion. While explaining how cqse various policies may encourage actual and potential growth, the answer should also address potential limitations of the various policies and also the constraints of the nature of the economy.

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Implications of developments in modern technology like faster broadband internet connections on.

H2 Economics Case Study Questions

Illustrate how market for electricity changes DD shift rightwards holding SS constant price increase – DD for electricity tend to be inelastic long term contracts; Extract 2 – SS of electricity also inelastic leading supplier can control price; Extract 1. Explain how each of the various macroeconomic policies may encourage actual and potential growth. Being tied to longer term contracts, consumers are not given the opportunity to respond to the lower wholesale prices of natural gas by increasing their quantity demanded of natural gas.

Depends on governments to overcome the costs of globalisation.

h2 econs 2008 case study

On the one hand intra-industry trade associated with entrept activity is tsudy to explain. We know it cuts into current living standards. USAs rising current account deficit is seen in figure 1 and this is to be contrasted with Chinas big rise in foreign reserves.

Despite UK price o f natural gas being three times more than that in Netherlands, gas pipeline connecting Netherlands and UK was 3? Increasingly we import labour intensive lower added value products as our own labour force focuses on high value added arising from human capital. However, there remains economic inefficiency in the market due to relatively small number of energy firms in the market and the business strategies employed.

The underlying policy therefore seems to be:.