Questions (20 marks)

  • Describe using appropriate supply and demand diagrams, how the existence of data roaming charges affected both consumer and producer surplus in the mobile phone market.

5 marks

  • Why do you think the European Union believed that data roaming charges was an example of market failure?

5 marks

  • Could the European Union have used a tax or subsidy to correct the market failure in this particular case? Justify your argument.

5 marks

  • Should mobile phone services providers have exercised social and ethical responsibility with regards to data roaming charges and not even have introduced them in the first place? Justify your argument.

5 marks

Part C – Macroeconomics (35 marks)

  • Download annual UK data on consumption (real personal consumption) and real GDP (real Gross Domestic product) from 1995 until 2018 from FRED and include both in the same graph. Overlay recession bars and copy the graph into your Word document.

Describe the trends in the graph over time and comment on the recession periods.

15 marks

 

  • Use the model of aggregate demand and aggregate supply to help illustrate why inflation might be expected to accelerate when economic growth is rising.
  • marks
  • To what extent do you think the model of aggregate demand and aggregate supply can accurately explain what is happening to key economic indicators since the UK referendum results of 23rd June 2016 – commonly referred to as Brexit?

10 marks

Introduction, Conclusion and References (15 marks)

 

The following are key factors that are taken into account in the assessment of a report:

  1. Evidence for extensive and in-depth reading of relevant literature (journal articles, textbooks, and other relevant sources)
  2. Understanding of the subject, as demonstrated by the ability to clearly explain the issues involved and an awareness of alternative views on the topic.
  3. Thorough grasp of theories and/or theoretical models (where appropriate) relevant to the topic, the use of relevant concepts and (where appropriate) the use of diagrammatic analysis and/or equations.
  4. Good use of comprehensive, relevant, accurate and up-to-date factual/statistical material (where this is appropriate).
  5. Ability to think and to reason logically and consistently in the writing of the report.
  6. Good use of a wide range of academic sources in the writing of the report, all of which have been fully and comprehensively referenced in the bibliography.
  7. Ability to write in clear and grammatically-correct English, with proper use of paragraphs including both an opening/introductory paragraph that sets the scene and concluding paragraph bringing together the issues discussed is the report.
  8. Ability to come to a clear set of independent, yet intelligent and well informed, conclusions that derive from the arguments contained in the rest of the report and the evidence cited.
  9. The use of good written and communication skills in the presentation of the report, including typing, spelling, punctuation, sentence construction, the drawing of tables, the presentation of statistical material, the use of footnotes and the overall lay-out of the report.
Micro and macro economics