Essay 1 on the 2022 AQA A level economics paper 1 questioned whether high speed internet connection should be provided, free of charge to all households. Here is a model answer which addresses this question:
The eight richest people on the planet hold as much wealth as the poorest half of the world’s population put together. The richest of these, Jeff Bezos, has a level of wealth that you wouldn’t match if you earned $180,000 every day from when Jesus was born up to the present day.
Aggregate demand is the total demand for all goods and services, made up of four different components:
Economics is traditionally based on the assumption that consumers always act rationally and with total self-interest, sometimes known as 'homo-economicus'. Behavioural economics challenges this assumption in a number of ways:
Monopolistic competition in the short run. Firms are price makers with a downward sloping demand curve. Supernormal profits may be earned at the profit maximising output MC=MR.
With Donald Trump's tariffs headline news, this Plant Money video is a great example of the unintended effects of protectionist policies.
The trade creation and trade diversion diagrams are some of the toughest in macroeconomics but mastering them can be a route to the top mark bands in essay questions about economic integration.
Perfect competition in the short run. Firms are price takers with a horizontal demand curve. Supernormal profits may be earned at the profit maximising output MC=MR
Essay 3 on the 2022 AQA A level economics paper assessed the different policy options to reduce income inequality. Here is an exemplar response:
The focus of the 20 mark question in the 2022 Edexcel AS business paper was a discussion of whether a chocolate manufacturer should expand their distribution channels or implement a competitive pricing strategy. Here is an exemplar response.
In Oligopoly, demand for a firm is price elastic in response to a price rise but price inelastic in response to a price cut. This results in the kinked demand curve and prices remain rigid at this point, even if cost conditions change between MC and MC1.
In a monopoly market, there is only one firm. They will be a price maker with a downward sloping demand curve, and earn supernormal profits by producing at the profit maximising output MC=MR.
