Y12 Work 3rd December

Economics - P2 and P3 Hi folks, I can't get in, sorry, but it is critical that you use the time wisely. Please do question 26 of the attached past paper, (question 16 attached is the same question bizaarly) but may not open.

 You can do this from the netbooks, or ask someone to print pages 12 and 13 for you.

 Please write the answers to Q16 a, b, and c, in your exercise books, and send me qustion d (350 word max, inc diagrams), by email, by the end of period 3! This will allow me to mark it by Monday.

Issues and areas for discussion include: (remember you select a few that enable you to make an argument of two sides that you can evaluate)
 • Methods of intervention such as subsidy and price ceilings;
 • Effect on relative prices in Italy;
 • Effect on pasta producers and farmers in Italy and elsewhere;
 • Effect on economic efficiency and resource allocation;
 • Opportunity cost arguments;
 • Distributional effects;
 • Short-term versus long-term considerations;
 • Market failure considerations
 • Government failure considerations

Examples of evaluation include: considering the effectiveness of different forms of intervention; debating whether the increase in pasta prices results from short-lived or more permanent underlying causes; assessing the opportunity cost of intervention; considering the effect on economic efficiency.