How can you assume nobody is excluded if there is excess demand? Does the excess demand not mean that people are being excluded due to there only being a set amount of provided resources? Or after this is it just purely a normative judgement?
Db Rk Price exclusion is the exclusion focussed on here. However you are right, to ration the excess demand there must be some form of exclusion - the way most advanced governments do it is purely normative in nature. No use of the price mechanism
Can you explain why the supply curve is perfectly price inelastic? I wrote this in a direct state provision essay and my teacher said it was wrong because it suggests that there is a quota on production which is not the case. Is he wrong or am I, I'm not sure. Thank you.
Jack Syder-Mills He is wrong, the government commits to a level of spending on healthcare (for example) in a given year. That determines the level of resources allocated to the market (hence the vertical supply curve - fixed supply) - hence why in the UK we have such large waiting lists in hospitals. Free at the point of consumption healthcare makes impossible for government to supply the demand with budget constraints. This curve can shift however if the government commits more spending to healthcare/education so by no means is it a quota
***** Thank you very much; that has really improved my understanding. The supply curve is fixed vertically because they themselves determine the resource allocation of public goods which is restrained by their spending budget. Is supply also price inelastic because the state unlike the private sector is not profit-maximising and therefore unaffected by a price change? But they are able to increase how many they provide by taking away government finances from other areas or increasing taxes? Lastly, if you had to answer an 18 marker, in terms of analysis how would you show the shift of supply and change in Q as there is a missing market for public goods so none are provided (in theory) but practically some may be provide???- very few?
+Dhilan Bhudia It basically depends on the Severity of condition which is when someone with a worse disease will be prioritised over someone who simply has a cold
The government decides the fixed level of resource provision (based on its budgetary position) hence the vertical supply curve. No matter what happens to price, the supply is whatever the government has determined.
No it won't Florence
great content as always respect from Germany
YOU ARE AMAZING
Mr Dal, could you please tell me what exam board your students are on? :)
IB / AS and A Levels
will we be asked on this topic for the 18marker？
How can you assume nobody is excluded if there is excess demand? Does the excess demand not mean that people are being excluded due to there only being a set amount of provided resources? Or after this is it just purely a normative judgement?
Db Rk Price exclusion is the exclusion focussed on here. However you are right, to ration the excess demand there must be some form of exclusion - the way most advanced governments do it is purely normative in nature. No use of the price mechanism
***** Understood, thank you. Your videos are great keep it up!
is this playlist of video still relevant for the new linear spec for AQA????
100% yes, these videos are perfect for the new specs of all exam boards
you my friend are a legend
is there any new topics added that i should pay more attention to??
kind regards
Financial markets is quite a big new topic in Yr2 Macro.
is this not very similar to nationalising a firm?
Can you explain why the supply curve is perfectly price inelastic? I wrote this in a direct state provision essay and my teacher said it was wrong because it suggests that there is a quota on production which is not the case. Is he wrong or am I, I'm not sure. Thank you.
Jack Syder-Mills He is wrong, the government commits to a level of spending on healthcare (for example) in a given year. That determines the level of resources allocated to the market (hence the vertical supply curve - fixed supply) - hence why in the UK we have such large waiting lists in hospitals. Free at the point of consumption healthcare makes impossible for government to supply the demand with budget constraints. This curve can shift however if the government commits more spending to healthcare/education so by no means is it a quota
***** Thank you very much; that has really improved my understanding. The supply curve is fixed vertically because they themselves determine the resource allocation of public goods which is restrained by their spending budget. Is supply also price inelastic because the state unlike the private sector is not profit-maximising and therefore unaffected by a price change? But they are able to increase how many they provide by taking away government finances from other areas or increasing taxes? Lastly, if you had to answer an 18 marker, in terms of analysis how would you show the shift of supply and change in Q as there is a missing market for public goods so none are provided (in theory) but practically some may be provide???- very few?
What do you mean by severative condition?
+Dhilan Bhudia It basically depends on the Severity of condition which is when someone with a worse disease will be prioritised over someone who simply has a cold
why are the resources available fixed?
The government decides the fixed level of resource provision (based on its budgetary position) hence the vertical supply curve. No matter what happens to price, the supply is whatever the government has determined.
***** thanks a lot is a possible if you can explain evaluative points i can use for when determing if something should be left to market forces