2023 Paper 1 Flashcards
(5 cards)
evaluate interdependence in housing market
Answers may include:
* This is where one group responds to the actions of another
* Consumers respond to what properties house builders are building, the quality, the location, and the price
* Producers respond to consumer demands and to requirements of governments * Producers respond to local government development plans
* Governments respond to demands by consumers and those of producers
* Governments may have plans (for new towns/green zones etc.) which affect where consumers can live, and where producers build
Evaluation may include [NB: the extent to which]:
* In the UK, governments cannot force consumers to buy certain types of properties or producers to build.
* Consumers and producers are also affected by economic forces such as the supply of workers
* Producers who do not build what consumers want will not last very long
* Consumers may depend on government to ensure houses are built where they are needed
evaluate costs of choices on eco. sustainablity
Answers may include:
* Economic sustainability of an economic choice ensures the best use of resources so that Nina and Leo’s café can continue to grow over time
Costs:
* £10,000 loan and the interest payable/time scale of repayment
* Use of their reserves of money
* Cost of either painting or replacing tables/chairs or expanding outdoor area
* How much might this enable them to increase prices to consumers?
Evaluation:
* No guarantee that any improvements will bring in more customers or retain existing ones, especially with more cafés opening
* Monetary costs involved may outweigh any increase in revenue
* Will any changes at least meet what the competition is offering?
* Would it be better to improve the value of what they offer as against cosmetic changes?
* How economically sustainable are the choices?
roles of prices (apart from signalling)
consequences of fall in demand
evaluate advantages of increase in production for the region
Answers may include:
* Greater external economies of scale
* Increase in employment and/or employment opportunities
* Higher profits for firms
* Rise in standard of living
* Attracts other new firms to the area
Evaluation could include:
* External economies depend on other organisations responding
* Small businesses may have to spend money on training if the skills needed are not available
* Increase in living standards will be important to attract people with the right skills
* Will small businesses be large enough collectively to make a real difference?
* Impact may be dependent on the price elasticity of supply
