To top it all off, UK had a solid marketing strategy which was planned over three years - Time lag In the short term, demand for petrol is likely to be price inelastic. All this helped contribute to UK raising 39 billion euros and being the most successful out of all the countries that took part in the 3G auctions. Governments, as owners of resources that allow businesses to expand and modernize, are always ready to sell those resources as it will eventually help businesses and certainly bring revenues. Any country that wants to increase revenues from auction must try to facilitate the competition among bidders by trying to make participation in auction as attractive as possible and eliminating any barriers for participation.
This auction raised euros per capita. Looking at the results of the 3G thesis for sonnet 90 held init can be seen that the most successful auctions were the first of their type How to answer essay questions in economics Kingdom and Germany.
Therefore, economic growth in China is likely to lead to a larger increase in exports of high value-added goods than the decrease in exports of low value-added goods in Singapore which will lead to an increase in aggregate demand resulting in an increase in national essay on my favourite cricketer yuvraj singh and hence national income.
The other factor that affected the amount of revenue earned by each country was the sequence in which the auctions took place. However, if confidence is high, higher interest rates may not actually discourage consumer spending.
There were 6 European countries to held spectrum right auctions in There are several reasons why this action attracted so many participants. At least one. In conclusion, the reason for the different revenues earned amongst the countries that took part in the 3G auctions is due to the auction designs and the sequence in which they took place.
For example, a good auction design takes into account the information bidders have and the knowledge they have gained from previous auctions. They generated only 20 euros per capita. Read the question carefully. When it comes to auction design, the two crucial components are attracting entry and preventing collusion.
Body 1 (Case link, claim, counterclaim and mini-conclusion)
Introduction The introduction should define the economic terms in the question. Modern auction theory is a very powerful tool for designing auctions of very profitable kind. They adopted the UK design but had the additional rule that if bidders did not exceed licenses, the number of licenses would be reduced. Link your example to the diagram. Step 6: The 8-Step Approach Step 1: Consider both the supply and demand side.
In the yearEuropean auctions of 3G mobile telecommunication licenses raised over billion euros in government revenues. If appropriate, you could try and rephrase the question into a simpler version.
United Kingdom was the first to hold the auctions and they are a good example of how a well-planned auction design and good marketing strategies can lead to a favourable outcome. This is what we mean by evaluation. The production of low value-added goods such as disk drives requires low-skilled labour.
How to Structure Your Economics Essay Klemperer say that what really matters in auction design is "robustness against collusion and attractiveness to entry".
Of course there are several other reasons for difference in revenues, among them essay on my favourite cricketer yuvraj singh is a fact that UK as a country that run the first spectrum rights auction in the world, might have enjoyed high revenues simply because participants were new to the licenses and had no idea of their true value.
However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. Consider the impact on all macroeconomic objectives.
How To Structure ECONOMICS Essay - A-Level - GCSE
This fact attracted new entrants, since at least one of the licenses can be potentially won by new entrants to the market. Also, Italy had failed to anticipate that firms would react differently to those in Netherlands and UK as they now had more information. Macro-evaluation Depends on the state of the economy — full capacity or recession?
Germany and Austria chose a more complicated auction design. Firstly, UK was the first country in the world to hold spectrum rights auction. However, if a firm is seeking to maximise market share, it may seek to cut prices — even if it means less profit. Example In the final analysis, the benefits of the growth of the Chinese economy to the Singapore economy are likely to outweigh the costs.
The reasons for this big discrepancy in revenues is likely due to poor auction designs and the sequence in which the auctions took place.
AS Macro Economic Essay Questions
Some students will be able to write more than others, because they write more quickly. Link your case back to the theory. As a result wrong auction design resulted in low revenues. He doesn't understand the theory yet and doesn't know any of your key words.
In online monitoring system thesis essay I would like to make a kind of short review of auctions of reflective journals and critical thinking rights for third generation mobile phones held in Europe in year Restate your answer to the essay question So what?
Nothing is wasted in the above example.
AS Macro Economic Essay Questions | Economics Help
You should not form a judgment in the introduction. The more how to answer essay questions in economics you can bring in, the more expert you will sound and the more persuasive your argument will be Conclusion Summarise your argument again - as you did in the intro different words though!
For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment e. Let's start with United Kingdom as it was the first country to hold such kind of auctions.
Governments, as owners of resources that allow businesses to expand and modernize, are always ready to sell those resources as it will eventually help businesses and certainly bring revenues. Here amount of participants was also artificially limited by allowing participants to join into the groups.
Pay particular attention to command words as they indicate what you are asked to do. For example, the growth of foreign direct investment in Singapore has corporate social responsibility sample essay decreased over the last two decades partly due to the growth of the Chinese economy.
There was a big differential between revenues raised in each country with United Kingdom leading at euros per capita and Switzerland coming in last at 20 euros per capita. Link the example to diagram and the question. Hence, there essay on beti bachao beti padhao in punjabi language no perfect auction design and they must be customized to suit different environments and targets.
Generally, the main difference in revenues generated from spectrum rights auctions can be explained by the difference in chosen auction design.
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Essay 1 In the yearthere were auctions of spectrum rights for third generation mobile telephones in several European countries. Criticize the theory. If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth.
Since there were four licenses and four bidders, bidders ended up paying only the reserve price. Bearing the above in mind, decide which one makes the clearer argument and which, therefore, got the higher mark.
They were: Make a note of the relevant economic theories and concepts that come to your mind without paying attention to their degree of relevance. Germany and Austria generated and euros per capita in revenue respectively. The main thing is to avoid combining too many ideas into one sentence.
Further, consider part b before attempting part a to prevent any overlap between the answers.
Dixit and S. However, over time, consumers may find alternatives, e.
If demand is price elastic, the tax causes a bigger percentage fall in demand. Indeed, the exports of Singapore have been increasing over the last few decades when China has been experiencing rapid economic growth.
How to Write a Good Economics Essay: 14 Steps (with Pictures)
Step 2: Overall economic situations in the counties as well as political might also result in differences in revenues. The reason for this is that sometimes bidders with a lower value may beat opponents with a higher value. So, auctions held by government, and to be more specific properly designed actions directly influence the life of modern country.
Different auction design results in different amounts of money in revenues. Among other reasons of its popularity stands direct importance of its ideas to modern businesses and governments. Higher interest rates increase the cost of borrowing.
Writing for Economics: Essay writing What does it show in general.
It helps to keep reminding yourself of the question as you answer. Part A2: Ascending auctions encourage bidders to act collusively and deter weaker potential bidders as they know that the stronger bidder will always out bid him. AD3 to AD3 Micro-evaluation 1. Another factor that made things even worse was the fact that that was an ascending auction. Participants were not completely aware of the usefulness of 3G cell phones, but were eager to get competitive advantage in the new generation mobile communication technology.
Make sure you also answer the question here.
2 Thoughts to “Tips on answering Economics essay questions”
Therefore, as a result, they can get zero for a question. For example, Deutsche Telekom colluded with local incumbents to bid for a 3G license. When you are writing the answer to an essay question, you are encouraged to use diagrams that are correctly labelled to illustrate understanding of the relevant economic concepts.
The reason for this was that there were 6 bidders competing for 12 blocks of spectrum and a very low reserve price one-eight of the reserve price in Germany.
Tips for writing economics essays
Or perhaps there is something else unrealistic about the theory. Revenues depend on how well the auction design is able to attract entry and prevent collusion. Define words that require definition.