Questions to practice on during the long night ahead

Some students said they were going to sleep until about 1 am and then coffee, Red Bull etc until the end of the exam.

We advised against but, their choice.

Here are some questions given out:

All questions are prefaced by a ’with reference to the case study…

1) Outline the factors contributing to the rise in food prices worldwide. (20 mks)

2) Evaluate carbon trading as a means of reducing pollution.

3) Explain, using a diagram, how carbon trading operates in principle and practice.

4) From extract 2 – why end the buffer stock system. Also (Jan 2009) why start it again?

5) Extract 3: outline the arguments against Soviet style central planning.

6) How do monopoly producers raise prices?

7) Long term supply of food. Ideally a supply response would come from the 450m small holders in developing countries. Why would this be desirable?

8) Who are the winners and losers from higher food prices?

9) Outline the social consequences from a rise in food prices.

10) Explain how CAP leads to higher food prices.

11) Direct income supplements have replaced guaranteed minimum prices – why is this?

12) Butter prices fell and yet they then rose. Why was this?

13) Contrast the different types of intervention to stabilize food prices mentioned in the passage.

14) @The action by the EC signals a belief in using the market mechanism to encourage industry to confront environmental damage.@ How so?

15) How are biofuels an example of government failure?

16) Why did Russia choose a price freeze over alternative policies?

17) Using a diagram explain how food price rises are a result of oil price rises?

18) “The ERU carbon trading scheme is an example of government failure@ Discuss

19) What are the main alternatives to carbon trading?

20) Compare carbon trading and carbon tax as a means of reducing pollution.

21) Using a diagram explain when EU surpluses of butter were released on the EU market the price of butter rose.

22) Explain whether you think that the EU was right to sell of their intervention stocks when the world price of butter was rising.

23) Is the reduction of cereal tariffs the most appropriate way of reducing food price inflation in the EU?

24) Why are the monetary authorities so concerned with the rising prices of food?

25) What is the link between CAP and the food prices for EU consumers?

26) Has the market intervention in the market for biofuels led to more problems than it has solved?

27) Identify from the various extracts in the stimulus materials possible examples of government failures.

28) Has the policy adapted by the UK and the US with regards to biofuels contributed to price inflation?

29) What strategies are available to the European Union if they want to reduce fuel consumption by cars and trucks?

30) Should biofuels be regarded as a merit good worthy of subsidy?

31) Using a diagram, outline set-aside policy.

32) Should the EU be cutting import tariffs on cereals when many of the poorest countries in the world are suffering from cereal shortages and high prices?

33) Using economic analysis, evaluate the case for biofuel production

34) ‘CAP is an example of government failure’ – discuss

35) Compare figs 1.3 and 1.4

36) Explain the divergence between the trends in world and EU prices of butter. Is the main reason the falling price of feed wheat?

37) Using diagrams explain why despite there being no big increase in demand in India and China for butter, prices still rise.

38) How was the buffer stock scheme justified when CAP was conceived?

39) Using economic analysis, argue the case against a buffer stock scheme.

40) How was CAP reform forced on the EU?

41) From paragraph 3 of the introduction, contrast the interest rate policy approach with the German welfare benefits scheme?

42) Evaluate the EU scheme to drop tariffs.

43) Why was the biofuel scheme promoted?

44) Using economic analysis evaluate the Crutzen case.

45) Comment on the economic consequences of the production of energy crops to produce biofuel.

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