Unit 2 Essay Question : May 2001 Q1

May 2001 Q1 :

Examine the extent to which demand side policies designed to reduce the rate of inflation might cause a rise in the level of unemployment.

Candidates should identify at least two methods of dampening  the level of, or growth in (accept either approach), aggregate  demand (e.g. higher taxes, reduced government spending, higher  interest rates). An appropriate AD/AS diagram,  correctly labelled. Analysis of move to a new  equilibrium.

A variety of approaches may be taken by candidates in  explaining the conflict – any reasonable set of arguments should  be rewarded e.g. a description of a multiplied contraction of  output leading, via the labour market, to a fail in employment,  and/or a correctly labelled short-run Phillips curve with a brief  explanation of the trade-off it represents.

Evaluation marks should be awarded for the candidate’s recognition of the “extent to which” in the question:

  • State of the economy (recession or boom), or recognition of the importance of the initial position on the AS curve  (i.e. AS may be very inelastic at near full employment so there may be little unemployment cost of reducing  inflation). Alternatively, some contrast between different assumptions about the AS curve.
  • Other things may not be equal with AD e.g. other factors affect AD, such as exchange rate movements.
  • That there may be other factors affecting AS at the same time as the policy, so perhaps allowing lower inflation (fall in AD) and rising employment (exogenous rise in AS).
  • That there might be some offsetting effects on expectations (low inflation environment positively changing expectations.
  • Any standard caveats about the effectiveness of demand management, e.g. resistance of demand to the policy changes, crowding out effects, exchange rate effects.
  • Any supporting reasons why the dampening of demand may cause higher than expected rises in unemployment e.g. the sensitivity of the UK economy to exchange rate changes brought about by tighter monetary policy.

Econ FAQ #1 How to draw the price discrimination diagram

How to draw the price discrimination diagram

Many students find it difficult to draw the price discrimination diagram. I think it’s mainly because there are three different diagrams that are linked together with different prices and quantities. If you’re one of those students, follow the steps outlined below, practice it a few times, and you’ll see that it’s not that difficult after all 🙂

 

Price Disc

[click on the diagram to enlarge]

 

  1. Draw:

(i) Market A – a market with inelastic demand – therefore, a steep AR and MR

(ii) Market B – a market with elastic demand – therefore, a flat AR and MR

(iii) Combined Market – combine AR and MR of Market A and Market B

  1. Draw MC in the combined market – MC must cut the MR after the kink
  2. Find MR=MC in the combined market:

(i) draw a horizontal line from MC=MR to the price axis find MC*

(ii) draw a vertical line from MC=MR to the output axis find and Q*

(iii) extend Q* to AR to find P*

  1. Extend P* to market A and B and find q* in market A and B
  2. Extend MC* to market A and B
  3. Find the point where MC* line cuts MR in each market to find the market Q and P

(i.e. PA and QA in market A and PB and QB in market B)

  1. If drawn correctly:

PA > P* and QA < Q* in the Inelastic Demand Market

PB < P*and QB > P* in the Elastic Demand Market

 

This is what it should look like:

Price Discrimination Diagram

[click on the diagram to enlarge]

 

Study Skills: Sketchnoting

Sketchnoting

There are an array of study skills, which may tackle the process of organizing and taking in new information, retaining information, or dealing with assessments, tests or exams. They include mnemonics, which aid the retention of lists of information, effective reading, and concentration techniques, as well as efficient notetaking.

Notetaking is the focal point today. Note-taking is the practice of recording information captured from another source (oral discussion, lecture, class note or textbook). By taking notes, the writer records the essence of the information, freeing their mind from having to recall everything.

The person taking notes must acquire and filter the incoming sources, organize and restructure existing knowledge structures, comprehend and write down their interpretation of the information, and ultimately store and integrate the freshly processed material. The result is a knowledge representation, and a memory storage.

Many different formats are used to structure information and make it easier to find, and to understand, later. Today we’re focusing on sketchnoting as a visual notetaking study technique.

It’s the latest study technique fad! Did you even know? I’ve taken up sketchnoting recently, and I love it! So much that I’ve got my students going crazy about it too!

What is sketchnoting?

The answer to the first question is pretty straight-forward: Sketchnoting is a way of note taking that involves not just notes, but also sketches. Mike Rohde, the godfather of sketchnoting, defines it as taking rich visual notes, mixing handwriting and drawing to create a more appealing set of notes, and that’s exactly what it is! What stands out most about sketchnoting is that it’s not just a note taking method, you’ll be also using all the other study techniques when you sketch note. You can still use mnemonics, short notes, mind maps, effective reading and concentration techniques, as well as efficient notetaking.

To me, sketchnoting is appealing, because as it turns out I’ve been doing it for the past decade, and it dawned on me that what I’d been doing had a name, was not as strange and uniquely “me” as I’d previously thought, and it is gaining momentum as a cool thing to do. And now, I’m hooked. I’ve developed the sort of passion for sketchnoting that keeps you in a continuous flow. I love to sketchnote, and feel like I have to do it.

Now, the fact that I think it’s fun and cool, is probably not enough reason for you to try your hand at it. So what is?

The main reason to start sketchnoting, in my opinion, would be that it allows for true active learning, where you engage with a topic that you’re studying in a holistic way, allowing you to focus your attention and fully immerse yourself in a subject. There is something about converting text into image that captures people’s imagination and holds their attention in a way that just doesn’t seem to happen with a normal short note or mind map.

So, how do you start?

That’s the beauty of sketchnoting: You’re probably ready to start right now. Just get some paper and your favorite pen and you are ready to go. Just start looking for metaphors and models in the note that you’re studying and draw those images combined with lots of funky text/ typography.

Any way you structure your sketchnotes is fine, let your creativity run wild! The best part is that you don’t even have to be the best artist! If you can hold a pen/pencil and write and scribble, then you can most definitely sketchnote! I’ve taught a bunch of my students how to sketchnote, and they are having way too much fun! But, that’s exactly what I want it to be, studying should be fun, and sketchnoting is such a great way to make studying interesting and help to bring your textbook note alive!

So that’s kind of it for today. For the moment, I’ll leave you with a youtube link about visual notetaking, which is basically the same thing, so you see what I’m talking about. There’s nothing much to it actually, just text and drawings. Give it a go, the first sketchnote might take you a while, but once you get the hang of it, you’ll see what the hype is about.

Have fun sketchnoting! xoxo

 

Exam Skills: The DETER Strategy for Taking Tests

To do well on a test, you must have good knowledge of the information that is being tested. But you must also have a strategy for taking the test that allows you to show what you know. The DETER strategy can help you do your best on any test. Each letter in DETER reminds you what to do.

 

D = Directions

 

  • Read the test directions very carefully
  • Ask your teacher to explain anything about the test directions you do not understand.
  • Only by following the directions can you achieve a good score on the test.
  • If you do not follow the directions, you will not be able to demonstrate what you know.

E = Examine

 

  • Examine the entire test to see how much you have to do.
  • Only by knowing the entire task can you break it down into parts that become manageable for you.

 

T = Time

 

Once you have examined the entire test, decide how much time you will spend on each item.

If there are different points for items, plan to spend the most time on the items that count for the most points.

Planning your time is especially important for essay tests where you must avoid spending so much time on one item that you have little time left for other test items.

 

E = Easiest

 

The second E in DETER reminds you to answer the items you find easiest first.

If you get stuck on a difficult item that comes up early in the test, you may not get to answer items that test things you know.

 

R = Review

 

If you have planned your time correctly, you will have time to review your answers and make them as complete and accurate as possible.

Also make sure to review the test directions to be certain you have answered all items required.

Using the DETER strategy will help you do better on tests and get better grades.

Direction Words in Essay Test Items

Most essay test items are not presented in the form of a question. Instead, they are often presented as a statement that includes a direction word. The direction word tells you what you should do when you write your answer to the item. Look for the direction word and be sure to do what it tells you to do.

Here are the direction words that are most frequently used by teachers when they write essay test items. The meaning of each direction word is provided and is followed by an example of an essay test item using that direction word. Get to know what each of these direction words tells you to do.

  • Analyze – Analyze tells you to break something down into its parts and show how the parts relate to each other to make the whole.

 

Analyze the factors that contribute to good health.

 

  • Compare – Compare tells you to show how two or more things are BOTH similar and different.

 

Compare the forms of government found in the United States and China.

 

  • Contrast – Contrast tells you to show how two or more things are different.

 

Contrast the Republican and Democratic political platforms.

 

  • Define – Define tells you to explain the meaning of something in a brief, specific manner.

 

Define what is meant by “living life to the fullest”.

 

  • Describe – Describe tells you to present a full and detailed picture of something in words to include important characteristics and qualities.

 

Describe what it was like to live in ancient Rome.

 

  • Diagram – Diagram tells you to illustrate something by drawing a picture of it and labeling its parts.

 

Diagram a modern commercial jet airplane.

 

  • Evaluate – Evaluate tells you to present both the positive and negative characteristics of something.

 

Evaluate the impact of rap music on American youth.

 

  • Explain – Explain tells you to provide facts and reasons to make something clear and understandable.

 

Explain why the American Civil War occurred.

 

  • Justify – Justify tells you to provide reasons and facts in support of something.

 

Justify the need for the federal income tax.

 

  • List – List tells you to present information about something as a series of brief numbered points.

 

List the ingredients needed to bake bread.

 

  • Outline – Outline tells you to present the most important information about something in a carefully organized manner.

 

Outline what it takes to be successful in school.

 

  • Summarize – Summarize tells you to present the main points about something in a brief form.

 

Summarize how Thomas Edison’s inventions have made our lives better.

  • Trace – Trace tells you to present the order in which something occurred.

 

Trace the major events that led to America’s Declaration of Independence.

Recognize these direction words and knowing what they tell you to do will help you do well when taking an essay test.

Procrastination!!

Procrastination? Is it your biggest study problem?

What is Procrastination?

Procrastination is putting off or avoiding doing something that must be done. It is natural to procrastinate occasionally. However, excessive procrastination can result in guilt feelings about not doing a task when it should be done. It can also cause anxiety since the task still needs to be done. Further, excessive procrastination can cause poor performance if the task is completed without sufficient time to do it well. In short, excessive procrastination can interfere with school and personal success.

 

Why Do Students Procrastinate?

There are many reasons why students procrastinate. Here are the most common reasons:

  1. Perfectionism. A student’s standard of performance may be so high for a task that it does not seem possible to meet that standard.
  2. Fear of Failure. A student may lack confidence and fear that he/she will be unable to accomplish a task successfully.
  3. Confusion. A student may be unsure about how to start a task or how it should be completed.
  4. Task Difficulty. A student may lack the skills and abilities needed to accomplish a task.
  5. Poor Motivation. A student may have little or no interest in completing a task because he/she finds the task boring or lacking in relevance.
  6. Difficulty Concentrating. A student may have too many things around that distract him/her from doing a task.
  7. Task Unpleasantness. A student may dislike doing what a task requires.
  8. Lack of Priorities. A student may have little or no sense about which tasks are most important to do.

 

How Do I Know if I Procrastinate Excessively?

You procrastinate excessively if you agree with five or more of the following statements:

  1. I often put off starting a task I find difficult.
  2. I often give up on a task as soon as I start to find it difficult.
  3. I often wonder why I should be doing a task.
  4. I often have difficulty getting started on a task.
  5. I often try to do so many tasks at once that I cannot do any of them.
  6. I often put off a task in which I have little or no interest.
  7. I often try to come up with reasons to do something other than a task I have to do.
  8. I often ignore a task when I am not certain about how to start it or complete it.
  9. I often start a task but stop before completing it.
  10. I often find myself thinking that if I ignore a task, it will go away.
  11. I often cannot decide which of a number of tasks I should complete first.
  12. I often find my mind wandering to things other than the task on which I am trying to work.

 

 

What Can I Do About Excessive Procrastination?

Here are some things you can do to control excessive procrastination.

  1. Motive yourself to work on a task with thoughts such as “There is no time like the present,” or “Nobody’s perfect”.
  2. Prioritize the tasks you have to do.
  3. Commit yourself to completing a task once started.
  4. Reward yourself whenever you complete a task.
  5. Work on tasks at the times you work best.
  6. Break large tasks into small manageable parts.
  7. Work on tasks as part of a study group.
  8. Get help from teachers and other students when you find a task difficult.
  9. Make a schedule of the tasks you have to do and stick to it.
  10. Eliminate distractions that interfere with working on tasks.
  11. Set reasonable standards that you can meet for a task.
  12. Take breaks when working on a task so that you do not wear down.
  13. Work on difficult and/or unpleasant tasks first.
  14. Work on a task you find easier after you complete a difficult task.
  15. Find a good place to work on tasks.

Above all, think positively and get going. Once you are into a task, you will probably find that it is more interesting than you thought it would be and not as difficult as you feared. You will feel increasingly relieved as you work toward its accomplishment and will come to look forward to the feeling of satisfaction you will experience when you have completed the task.

Study Skills: Managing Your Study Time

 

There are only so many hours in a day, a week, and a term. You cannot change the number of hours, but you can decide how to best use them. To be successful in school, you must carefully manage your study time. Here is a strategy for doing this.

 

Prepare a Term Calendar

  • At the beginning of a term, prepare a Term Calendar. Update it as the term goes on. Here is what to do to prepare a Term Calendar.
  • Record your school assignments with their due dates and your scheduled tests.
  • Record your planned school activities.
  • Record your know out-of-school activities.
  • Each Sunday before a school week, prepare a Weekly Schedule. Update it as the week goes on. Here is what to do to prepare a Weekly Schedule.

 

Record your daily classes

  • Enter things to be done for the coming week from your Term Calendar.
  • Review your class notes from the previous week to see if you need to add any school activities.
  • Add any out-of-school activities in which you will be involved during the week.
  • Be sure to include times for completing assignments, working on projects, and studying for tests. These times may be during the school day, right after school, evenings, and weekends.
  • Each evening before a school day, prepare a Daily Organizer for the next day. Place a next to each thing to do as you accomplish it. Here is what to do to prepare a Daily Organizer.
  • Enter the things to do for the coming day from your Weekly Schedule.
  • Enter the things that still need to be accomplished from your Daily Organizer from the previous day.
  • Review your class notes for the day just completed to see if you need to add any school activities.
  • Add any out-of-school activities in which you will be involved the next day.

Your Weekly Schedule should have more detail than your Term Calendar. Your Daily Organizer should have more detail than your Weekly Schedule. Using a Term Calendar, a Weekly Schedule, and a Daily Organizer will help you make the best use of your time.