1. Session 4: Unit 1 Data Response Questions Ray Powell

2. Questions on Markets & Market Failures Unit 1 data response question papers usually contain 2 questions covering: Question 26: a market (or markets) Question 27: market failure(s)

3. How Data Response Questions are structured in the Unit 1 & Unit 2 exams [01] Define the term [02] Compare (or possibly identify) [03] Explain [04] Evaluate (or possibly assess, or possibly Do you agree?..Justify your answer.

8. Identify two points of comparison between the changes in the price indices for coffee and tea over the period shown by the data in Extract A. (8 marks) Extract A

10. Part [03] of a Data Response Question on a Market Part [03] of a question on markets may require candidates to perform 3 tasks: Draw an S & D diagram to show an equilibrium Identify a factor shifting the S or D curve Illustrate and explain the effect of the shift

18. Monopoly Merit goods and Demerit goods Public goods Externalities Income and wealth inequalities The Data Response Question on Market Failure Usually one of the two Data Response Questions in the Unit 1 exam is on a well- defined market failure. The main types of market failure are:

19. These diagrams can be used to illustrate ‘bad’ and ‘good’ Monopoly

20. Merit Goods & Demerit Goods

24. Public goods and private goods

26. Practise drawing diagrams such as this one:

27. And this one: Resource misallocation and negative externalities

28. The effect of consumers possessing imperfect information (information failure)

29. Returning to the final part of a Unit 1 data response question, three types of format are commonly used Type 1: Focusing on the role of market forces

30. Type 2: Focusing on a particular type of government intervention

31. A variant of Type 2, focusing on methods of government intervention to correct examples of market failure

32. Type 3: Questions asking for an evaluation of the case for and against government intervention to deal with a problem, but without specifying any particular type(s) of intervention