Synoptic paper

Question 1

essays: micro economic effects

Answer 1

Effects on:
Consumers, producers, gov, workers, suppliers, retailers

Diagrams:
demand/supply
externality
cost, revenue and profit
game theory

Question 2

essays macroeconomic effects

Answer 2

Objectives:
growth/development, unemployment, inflation, budget, balance of payments/competitiveness, inequality/poverty, environmental damage

Diagrams:
AD
Lorenz, Laffer, Tariff

Question 3

policies essays: micro

Answer 3

Micro policies:
indirect tax
subsidies
min price/wage
max price/wage
provision of information
state provision

regulation
privatisation
nationalisation
deregulation
competition policy

Question 4

policies essay: macro

Answer 4

Monetary:
Interest rates/QE

Fiscal:
Gov spending/taxation

Supply-side policies:
Market based: cut taxes, privatisation, deregulation
Interventionist: investment into education/infrastructure, incentives for investment (tax breaks)

Protectionism:
Tariffs, quotas, non-tariff methods

Exchange rate policy

Regulation of financial markets and global companies

Question 5

essays: micro factors

Answer 5

1. Micro policies: indirect tax, deregulation
2. Producers and suppliers: price/non-price strategies, market structure/contestability, mergers
3. Labour markets: changes to wages/mobility
4. Demand and supply: elasticity

Question 6

essay: macro factors

Answer 6

Macro policies: demand-side, supply-side, protectionism, trading blocs

Macro economy: growth, inflation, exchange rates, unemployment, development

Changes in AD/AS