Methods of Revising!

• Read the textbook! - Always useful and will always contain whatever your learning about

• Take notes in class - Use your time wisely in class!

• Ask the teacher questions and concerns about anything on the subject you’re having trouble with - Your teacher is a direct source of help! You should ask when you have no idea what to do

• Do past papers! - Practice practice practice! Always make it timed and always test yourself with them.

• Revise structure of question - Knowing what to write and how to structure your answer for the long answer questions are very important! This would help you achieve the maximum amount of marks you can get for the question.

My Model Answers for Four-Part Questions:

*Teacher checked and they are all correct and good! I will add more when I find more

(Chapter 27)

1. A private good is a product which is both rival and excludable.

2. A government may run hospitals because they deem it as an essential service which private sectors would under produce and consumers would be under consuming this. They may also run hospitals because private sectors may not be able to bear the high costs of providing this service while the government will be able to provide it to everyone at an affordable price.

3. A planned economy would have high levels of government intervention compared to that of market and mixed economies.

4. The government should ban the production of cigarettes because cigarettes are a demerit good as it harms one’s physical health and has external costs like air pollution and negatively impacting others around them. It would also increase the overall health of the country which would put less strain on hospitals.

However, the government should also not ban the production because the large cigarette industry has provided a lot of employment to people, banning the production may lead to higher unemployment.

(Chapter 32)

1. Working conditions and amount of leisure time.

2. Real GDP is GDP at constant prices and so it adjusts for inflation. Real GDP per head is a better method to measure the living standard in a country as it shows what the average person outputs in an economy rather than the economy as a whole.

3. The rise in labour productivity can increase living standards as when there is more output, real GDP rises. Since real GDP per capita is an indicator of living standards, this would mean that the living standards in that country has increased. An increase in labour productivity would raise living standards as people receive more income from the output they produce, there would also be an increase in consumption of consumer goods, which is also an indicator of living standards. Therefore, the living standards would increase.

4. HDI would be a good measure of living standards as it measures a wider range than real GDP per capita. HDI would consider the length of time for which people can enjoy life, which is measured by life expectancy at birth and education, which is measured by mean years of schooling and expected years of schooling. HDI can also show that economic growth and human progress may not always match. HDI is more likely to capture a variety of indications of living standards more than real GDP per capita.

However, there are some drawbacks to HDI as it doesn’t take into account political freedom and the environment. Someone living in prison for a long time and has been well educated could be ranked high on the HDI. It also doesn’t consider the differences in life expectancy, education and differences in income between males and females and between those living in rural and urban areas.