And paper up when we have a ert. I don't quite know what you're asking. Hold on, let me find let me see if I've got one on here already. Uploaded your red excel on you. Yeah, all done. Exhale. Let me just do this gcse. Oh no, this is a level. Okay, right? I don't know what paper this is so I haven't looked it. Obviously what I will have at some point. Oh look about Netflix. Hang on, this is all multiple choice. Do you mean in the short answer questions or the long questions? I mean the wrong question. I said, this paper's got any long questions on it. I here's your long questions right? Okay. So they are the questions. Have a look at them and pick one of them and then sort of tell me exactly what you're wanting me to sort of tell you how to do. So. This is quite a general question. Profit maximization is sumto be the business objective of most firms with reference to exact a, as is whether this is the case or coffee shop. Owens ownerous, Yeah. So this question saying that making profit maximization means making as much profit as possible. Okay, that's your aim. You've started a business and your aim is to make as much money as possible. That's profit maximization, maximizing your profit. That's assumed to be the business objective of most firms. So most firms, it's saying that their objective is to maximize profit with reference to extract a, well, haven't looked at it, but we can assess whether this is the case for coffee shop owners. So you have to say, do coffee shop owners use profit maximization using extract a? Yes and no. Okay. So explain to me what you said at the beginning linking to this question. What is it you want to know exactly? Just so I understand exactly what you want to know. Does that make sense? Well, I think when in the when I write down the parts, when I write down the answer, I don't think I can write both micro and micro. So, so how to distinguish it? I don't really distinguish it in that way, but the long answer questions I would say, unless they are very specific, are macro. Okay, Yeah, mainly macro because you're doing all the links. However, micro is just showing you one business or one economy in the very short term. So hang on, let me show you. There we go. That's what I wanted to do. That was what I wanted to do, right? Okay. So micro looks at an individual, a specific firm, customer, etcetera, focusing on supply demands and prices and it's often short term, shorter term. Okay, and small. So micro is short ter term and small. So if I was looking at miceconomics, I would look at Jackson's response to the price of a Big Mac going up. Yeah, that would be my micro. What does Jackson do when a Big Mac goes up and McDonald's goes up in price? He does this, he does that. He buys something else. He buys a substitute. Good. And macroeconomics is where I look at what happens to the Chinese economy when the price of food goes up. It's a lot bigger kind of generalized look at. So it looked macro looks at the so macro looks at the big picture, okay? So that looks at what's happening in a large scale. So that's looking at the larger scale. Okay. So it looks at national global economies and then all this these key things that, to be honest, in most of your. Big questions. You're going to be talking about all this. Remember, we said you would always be talking about something like tax. You know you always talk about aggregate demand. You've got inflation, you know, unemployment, blah, blah, blah. Yep, all of these. These are all your macro things. I would say mostly in your long answer question, you'll be looking at macro, but that doesn't mean to say that micro won't be really important. And we'll try and have a look in this in this coffee shop one I haven't looked at exact a but we might talk about one coffee shop first and we but that would be micro but then we look at how all the collective coffee shops and what this means and what this means for employment or unemployment or whatever the sorry, whatever the link means. Okay, then we could like look at what we, you know, how it all links in the bigger picture. So we've got that one coffee shop would be micro and then we would have all the coffee shops together would be the macro side. So I think it's very difficult to say whether it's micro or macro you use and often you would use a bit of both. Does that make any sense at all or not? Yeah no bad. So so this one is it's a case for coffee shop owners. So that is a micro that means for from individuals, not for the whole part. Yeah but I would also say that it's very important that you can do far better on essays if you then lead into the macro because your micro choices all together then go into macro, don't they? Because if we talk about profit maximization, we then wouldn't be able we would then want to be talking about something like, you know, well, should we have a go at this question and how should we have a look at this question? Because we haven't looked at extract a. Let's have a look at extract a and think about micro and macro when we're doing it. Okay, so extract a. Let's have a look where we extract a. Figure one was extra day, figure two okay. Okay. So uk coffee shop chains have experienced slow growth, so that that is macroyeah. Rising costs in the uk cost coffee opened 60% fewer stores, but in 2018 and Starbucks opened just three new stores in all costs were rising staff shortages went rising wages and national minimum wage. That's this is all I would say. This is all macro in a challenging uk economy, customers place coffee quality ahead of a convenient location. So so customers wanted quality coffee. Need for coffee shops to match rising expectations in the uk increasingly crowded coffee shop market, independent coffee shops remain a threat to branded coffee shops. So maybe if you're looking at the independent, that means the small ones, then you just start to look at micro, a unique luxury experience for customers. This will often focus on the atmosphere and customer service, luxury food and drinks range. Independent coffee shops run on average profit as low as 2% of revenue, and many go out business as chains arrive as new coffee shops. It's macro, it's maco. I think it's macro all because that is the whole part of trade. Yeah it's the whole part of coffee shop. But if you then look at one coffee shop, if in your essay you said one of the independent coffee shops may this and this may this, if you then talk about one of the coffee shops on its own, you're then doing micro. So all the information is maco. So this or this or that coffee shop that is macro but that is the whole part. So it depends on reading in this article. Yes. Yes. And it depends on you can put micro and macro in in a hoin the same essay because you might say macro this and then what you might we won't say macro because you don't tend say macro economics says like you just write there anything we talking about inflation, sorry, inflation, the economy, trade, aggregate demand, all of this sort of stuff, all this big stuff is macroeconomics. I think the interesting stuff said macroeconomics. The microeconomics is the little graphs. If the price of a roast dinner went up in price, then people buy less roast dinners. You know the Jackson would buy less roast dinners. De da da da. He would substitute one roast dinner for a pizza. I saw micro Yeah the little gras and everything like that. Okay. In January 2020, Coca Cola finalized its 3.9 billion takeover of market leader cost of coffee stated here we go. This is where it links to the question. Stated aims are to maximize long term returns while being mindful of overall responsibilities such as sustainable communities, such as supporting sustainable communities. Major brands such as Costa continue to lead the coffee shop expansion. Okay. So I would say most of this is about macro. But you can add some micro in there. Okay. So should we try that? Oh, sorry. So Yeah, I say that is Coca Cola in the company. So is that a micro? I think that is micro. Maybe if you talk about it specifically, you could Yeah you could say if Coca Cola's costs increased, then da, da, da and then you draw microo diagrams. Yeah. But in the same sort of paragraph, you could say, because it's such a large company, you know it's Coca Cola is costs are impacted by the what was it, the minimum wage. You've then linked micro and macro because the minimum wage is macro. Do you see what I mean? So they really sort of depend on how you write the question. If you're just if we go back to this now, if Oh, hang on, the soi small button, that was what I meant today. Note that micro is individuals, consumers, firms or specific markets. So exactly right. If you just look at what Coca Cola chooses or something about Coca Cola, that is micro. The minute something outside the economy impacts Coca Cola, that's macro. Yeah with some some parts impact pocola that is micro or micro second, sorry, something depends something. If you're looking at it from the Coca Cola side, it's micro. If you're looking at the actual impact, it's macro. So you can't say it's not microeconomics to go that there's a increase in minimum wage because the minimum wage is macroeconomics. But the impact on Coca Cola, you're talking about the microeconomics, a macroeconomic concept has impacted Coca Cola. Why do you want to know the why do you want to see for me, they're very intertwined. Why do you want to know when to do one or the other or just to kind of get it straight in your head? Well, I make this in my hand in my head now because, I mean, in that test in my school, I get I get no Marks. And I do think I get very well in my in the last questions that is that takes part in a higher high Marks. So I think the problem maybe is is in distinguishing macro and macro and to and describe this article briefly. I think that is two parts, two questions, two I mean, two problems maybe. Yeah, see, for me, I think the easiest way for you to get high Marks in your exams is to learn graphs and learn phrases. Because what often happens is that people answer the question, but you don't get good Marks for answering the question. How you think? Let's have a look. Let me see if I can find the Marks scheme. What exam? If we just looked at here, let me just see if I can find the mark scheme. And we'll kind of go through it backwards. What year is this? Oh, we don't know if excel, does it say what year it is? Oh, 20, 22. Hold on, let me just try and get the mark scheme for you. What is that? Yeah, this is the right one. Hold on, let me just let me just get it on the go to because then what I'll do is I'll show you the mark schenow. We know what the question is. Let's have a look at what they want you to do and we'll talk through how you would do that because I think it's worth you seeing it the other way round. Like this is the answer they want, and you kind of see it. Hang on, wait 2s. Just give me a sec. June 20, 22. Wait, I just don't paid it. Okay, so this is the mark scheme. Okay? This is what examiners mark off. Yeah all the answers and how Marks are given. So let's go to that question. Which was. Right so six c. So I was just scan Anning the mark scheme before I sort of start talking it to you, right? Okay. So the question, let's go back this. So we've got the question and we're just going to look at the answer, okay? And I'm going to talk you through how it's marked. Not like. I don't know that small, right? Okay. So the question is profit maximization is assumed to be the business objective of most firms with reference to track ass, whether this is the case for coffee shop owners. And it's worth ten Marks. Okay, ten Marks very important. The first thing you need to understand is that there are two Marks for knowing stuff, knowledge, two Marks for application, two Marks for analysis. You'll notice that adds up to six and there are four Marks for evaluation. So you get nearly half of your Marks for evaluation. So on a ten mark question. There are two Marks for knowledge. Two Marks for application. Two Marks. Oh, analysis. Importantly. Four Marks revaluation. Okay, can you see if you don't do this, you are never going to do well on this paper, okay? So it's very important when we bang on about evaluation, it's really, really important. Now the trick to a lot of these is your evaluation can often be the same in many questions. Okay, we'll come to that in a minute, but we're just gonna to go through how the mark scheme wanted you to answer this question. Okay, just so you can see exactly how you would get ten Marks the likelihood of you getting ten Marks in an essay question is low but you know 89Marks there but so that let's see how you get this right. So what it's saying is. You can either get for the first three, for the first six Marks, knowledge application and analysis. You will either get a mark between zero and six. Okay, you'll either get nato six and this is given you some idea of the things you could put in your answer. So you could put profit maximization. This would be your definition. So this would be where marginal cost equals marginal revenue. You could put that limiting pricing by limit pricing by Coster. You could look at coffee quality lowers profit because if you spend more on expensive coffee, then obviously the ingredients more expensive. Relocating mallow off book profit competitive market make survival top objective. Okay, so this is the other side. This is saying because they said it's a very competitive market and it said lots of businesses went bust, then just surviving might be an objective and a unique premium experience lowers profits. Okay, so these you don't have to put all of these in, these are just ideas of things you could have put in to your essay. Okay, it's worth looking at mark schemes and we'll do more of this because what you'll see is the things they see, they say a lot is worth trying to put in a lot of your essays. Okay, so profit maximization is marginal cost equals marginal revenue. Now that is quite a nice little little thing to remember, okay? Quite a nice little thing to put in any essays when you're talking about profit, instead of saying you know businesses want to make profit, you would say something like profit maximization is a key objective for businesses where marginal cost equals marginal revenue. Already you're sounding much better than just saying profit, but you can say it in every essay. Every time you want to say profit, you can say that, okay? But we will write down a list of them in a minute. Hang on. Okay, so you can do diagrams. I love diagrams. And for a level three response you must refer to coffee shops. Okay? You can't just talk about businesses you've got to use the the application Yeah is using the case study it told you to talk about extract a it told you to do that. If you don't talk about coffee shops and Costa and things like that you can get. Five or six out of six you cannot get this high one. So you must mention if the questions is about coffee shops you must talk about coffee shops. Sorry, I that is why I can't go get to level three, five, two, six because that's what the mark scheme says. For level three response candidates must refer to coffee shops. Refer to your coffee shop. Because the question back to the question it says with reference to extract a, which was all about coffee shops and assess whether this is the case for coffee shop owners. So you must talk about coffee shops. So if you had just written with a business, with a business, with these businesses, you would never get to level three. You must if it's talking about coffee shops, you must talk about coffee shops. If it's talking about factories that make pens, you must say factories that make pens, hs made in those factories, you know, the stationary factory, you must refer to them. If it's talking about new cars, you can't just say businesses, you must say new cars. Okay, really, really important. I tell people to use quotes sometimes out of the information because that means that you're using your applications. So it's really important. Whatever the question is about, you talk about it. So in this question. What's the application? What do they want you to talk about? Just look at this yellow question. All I want you to tell you is what word must keep coming in here. Read this question, I don't want the answer, I just want to know what you have, what product you have to keep talking about. What product, if you are answering this question, this question b, the one before it, what product? It wouldn't be coffee shops. What do you have to keep talking about if you were going to answer this question? Okay, the international price of coffee beings, two factors that will cause significant changes, changes the price of two factors. So I'm not asking you to answer it. What would you just have to keep talking about, youhave, to keep talking about coffee beans, coffee beans, coffee beans. Yeah, really important. You can't just say that would increase the price. Okay? I should say increase the price of coffee beans. Always. If the question has coffee beans in it, you have to talk about coffee beans. Okay. And that is a that is your application. That is this bit. So on this one, what you have to keep talking about, don't answer the questions. Just tell me what you have to keep talking about. A branded coffee shop change ins. Yeah, branded coffee shop, branded coffee shop change. Yeah, exactly. And you've got to keep putting that in your answer. So you can't say increase the price. You would have to say increase the price in branded coffee shop chains, resulting in a decrease in demand for branded coffee. Can you see? I know it sounds really silly, but it's what they want you to do. I've shown you it in the mark scheme. They want you. You cannot get the highest level Marks if you don't do that. All right. So that's something the next time you look at a question, if you notice, I know it's, I know it sounds ridiculous. Whenever I look at a question, say, I look at this question now, I always underline so using a cost revenue diagram, okay, the impact, the rising costs for coffee shops maybe double underline that. Now I know whatever I talk about here, I need to keep saying coffee shops, coffee shops with coffee shops, blah, blah, blah, blah, blah. This will lead to a rising cost for coffee shops and coffee shop owners. Coffee shop owners need to worry about blah, blah, blah. The you know, the Yeah, really, really important and that is your application. So concentrate on I should concentrate on coffee shop owners. Yes, in this one in Yeah in the one in the one we're doing yes, you've got your answer has to keep saying to be honest, you can answer it about anything as long as you keep bringing it back to coffee shop owners. Because you could even I know it sounds silly, you know, you always do your agg. You love your aggregate demand. One, you go, Oh, I can't remember what younormally say, but you say something leading to an increase in aggregate demand. As long as you don't stop there, as long as you say this increase in aggregate demand is really beneficial to coffee shop owners as it will increase their demand. You've done your general thing, but you've linked it back to the question. Does that make sense? What I'm saying to you, you can always talk. This is why what I think that the easiest way to PaaS these exams and do well in these is come up with phrases you're really comfortable with, economic phrases or concepts you love, aggregate demand. You answer that very well. We should come up with some really nice phrases that you'll try and put in not every essay, but most essays that come up. You're going to try and put that phrase in, but you can't just put it in. You've got to link it to the question. Okay, so you've got to link it to the question, in this case, coffee shop owners. So tell me now, why wouldn't you've talked about aggregate demand? Why is an increase in aggregate demand good for coffee shop owners? Increase in aggregate demand. Yeah, why is that good? Yeah, why is that good for coffee shop owners? Increase at aggregate demand because there's more consumption and more government spending on coffee shop owners. Perfect. Do you see what I mean? Can you see? Yeah. Does that make sense? Just just Yeah Yeah, Yeah know that point. Just focus on coffee shop owners. Just Yeah but you don't don't lose all the good things, you know, about the increase in aggregate demand, the unemployment, the high, you know, all this you need to put in. But in that last little bit of the sentence, you link it back to the question, coffee shop owners, profit maximization, whatever the key puof the question are, you link it back to that. So in most economic questions, like I've said, aggregate demand is beautiful. It comes up, put it in most of them. But link it back. You've got to pull it back to the question, coffee shop owners, why? Why is it important to that person? Why is aggregate demand important to. The international price of coffee beans wise aggregate demand important to the international price of coffee beans. So an increase in aggregate demand, you've done your blah, blah, blah, aggregate demand. Now link it to international price of coffee beans. I should write down the formula. I mean, aggregate demanof of the with coffee beawhich one that you know, okay, coffee being the aggregate demand formula of aggregate demand in coffee beans and equal to a and there's two factors will influence the international price of coffee piece. No. And for and for example, like more consumption and more governments spending on coffee, on international, sorry, on coffee beans. Is it? I should write down the international price of coffee beans or just coffee beans, either or both. I would, I would, if it's a long thing like international price of coffee beans, I would write it all sometimes. And I would just write just price of coffee beans. Other, I would do both. Okay okay ana ana okay does this sort of make sense? So now what I what I think we need to come up with as you go through maybe like you need to think about hang on, if if I can put in aggregate demand, what nice thing am I gonna na say? And you can even leave gaps. Hang on let me see if I can find an example to show you what I mean. Hang on. I don't have. I. Got any comments on. I want phises wait. Who will I done it with? I'm struggling, what I call it economics. We'll look at this. Wait. So let me just see if this as well. This isn't quite what I want economeconomics essay structuring. Let me see if it's on here. Wait a minute because this is what we'll get to. But I'll just want to show you the sort of thing I'm something else I'm trying to find. I can't find it. What's this? I don't know. This is quite what I'm on. Right, this one I'm showing you here is more a business one. Okay, and this is a viyou know, let's leave that one for now. This is this is a essay structure I did for yall that was doing economics and was struggling with the essays. So I said like for the long answer intro, agree with question, disagree with the question, offer alternatives and repeat a bluabove ff and then you need a conclusion. And then we've gone into this. So make your point evidence. So use your quotes. This means that leading to resulting in diagrams and then sort of different ones. Determinants of national income, aggregate demand. However, and here's were some ideas, increasing reduced consumption, therefore reducing aggrequate demand and evaluation. What other options? What would be better? Asymmetric information, time lags, cost opportunities, etc. But I want to find we had paragraphs. I want to try and find them for you, but I think what we need to do is find paragraphs that you can use and then link to the question, which I think you've kind of got in your head. Now what you need to do that you need your general knowledge about something and then you really home in on that question and link it specifically to that question. Okay, which is good. We've made a good step there, right? So let's go back to this question. So to get these high Marks, we already know we have to link to what was it, coffee shops. I can't remember what it was. Okay. So you demonstrate accurate knowledge and understanding of the concept, principles or models. So basically. Would be the best way to show this, okay, ability to link knowledge and understanding and context. This is using the case study. And words of the question, this is okay. And economics ideas are applied appropriately to the broad elements of the question. So you've used basically used economic ideas. Okay. So that would be the things to get your first sort of five to six Marks. Then to get the other four Marks, you need to think about your evaluation. So you are talking about profit maximization, okay? And your evaluation is worth four Marks. So ideas for evaluation, they've given short term objectives used to achieve long run profitability. Eeg better quality raises costs. So use of profit satisfacing to achieve other objectives. Eeg customer satisfaction or environmental goals. What this is saying is actually, do you like miss out on some profit. To achieve other goals. Such as. Mental once okay. This one, it depends on the owner. Stso depends on the owners. Coffee, Costa Coffee is changed in ownership, so change in objectives. Okay? So it all depends on the owner. If you owned a coffee shop and I owned a coffee shop, we would have very different ideas, wouldn't we? You might run your coffee shop, I don't know, for very rich, high end, very sort of you know quality coffee, I may run a coffee shop that people come to because there's kittens there, there's cats there, and they like to stroke the cats. Yeah, they're both coffee shops, but very, very different. They can be run differently. So that would be an evaluation, although it is important, you know although profit maximization may be important, you know overall to specific coffee shop owners, it could be different, couldn't it? You could think differently to me. Here we go. Depends on the owner. Independent owners aim for normal profit. Okay. So the words you need to be using for evaluation are where's that gone now? Where's my. So ate evaluate your words, what other options, what would be better, short term, long term impact of policies on inequality and unintended consequences? Dardoes it have more impact on the poor? Asymetric information, time lags, cost opportunity, cost arguments and externalities. Right? So the question is simply, we've talked about profit maximization in coffee shops. Okay. So trying to make as much money as possible in our coffee shop. So will you tell me what other options if we were doing the evaluation, looking for those extra four Marks at the end, what other options could coffee shop owners look at instead of maximising profit? What other options would there be? Another options instead of trying to make as much money as possible, that means the location some location is the it's better for them Yeah maybe maybe they've earest city center because that has the the intensity population. Good, so they may they may look at Yeah thatwill better to coffee shop. Good. Good. So they may look at actually being in a more successful location. Excellent. What about short term? Is maximizing profit in the short term best or the long term? That is for the coffee shops. I mean coffee beans. So that is coffee shops. We talk about coffee shops. I know we've looked lots of great here. I think shorten. Shorten. Why? So tell me. So profit maximization is important in the short term because a profit maximize in the short term, because. When there's more coffee shop, there's new coffee shop in the city center. People were willing to try try it so that it will increase the consumption. So I think the profit will get to the Maximum Maximum value in the short term. Good. However, in the long term, what will happen? However, in the long term, there are many. They are another branched shops and that will have competitions in this market. So right I'm gonna stop you, stop you, stop you you said shops and market, coffee shops, coffee shop market. I'm just just trying to get your thinking changing Yeah but Yeah good, good okay coffee shop market and there's competitations so people will think about which one they prefer to consume me. And that that was excellent. The only thing that would have made it more excellent would have been if we had used you know when you said competition, you could have named one of the competitions. So you could have named who did. You could have named maybe Starbucks or Costa. Okay. You want to be putting these things in your answer. So where it said look at extract a, you want to be using the words of extract a in your answers. So you see there where you just said the words like other competition, you want to be saying, even if you just put it in brackets, cost a coffee, Yeah ecost of coffee. It just shows you're using the case study. Even just so you know if you were talking about fast food, even if you put examples of fast food from your own head, that still shows you're using the application. You're using the the question so you could have named coffee shops, you know. All right, very good. Can you see? This is your evaluation. This is what you need to be doing at the end of the essay to get the higher Marks. Good. Let's have a look. Not all of these will be applicable impact policy on inequality, changing tax rates. Or do you think there could be any other unintended consequences of profit maximization? Unintended, lovely word, unintended consequences, economic term. What unintended consequences could the be of profit maximization? Well, except tax rates, that is, that will influence the price of the coffee beans. Yeah. I mean, this is just examples of things you can put in lots of essays. Not all of them apply. Tax rates are going to be quite difficult to apply about profit maximization in coffee shops. But what unintended consequences might there be of focusing only on profit maximization? What could happen if all you're worried about is profit maximization? What could be the unintended consequences? What could happen? Profits maximization, profits. All you want is profit. You're not bothered by anything else. I just want profit, profit, profit. Maybe there's tourism, increase tourism in this country, so that will increase the demand for coffee shop. So that that will maximize the profits in this coffee shop. Good in air in coffee shops. Yeah. Yeah, very good. Does always another good evaluation point. Who does it impact? Does it have more of an impact on the poor? So does profit maximization in coffee shops affect everybody equally? Yeah does it who does it impact? If if you're just selling coffee as expensive as possible because you're maximizing your profits so your price is very high, who does that impact the most? Impact on the poor, more wafare poor, poor that way in pakinson. Yeah, you're thinking too big. Keep it with coffee shops. You're right. But in this case, you're thinking too big. If the price of coffee goes up, what happens to poor people? Can they buy coffee? No no, it a coffee Yeah but basically what this is given you is ideas of evaluation points to put in. So for example, this is how I would write it. I don't know why it's so big. Which maximization does not impact on consumer equality as sale, they all have a different price of demand. The largest impact would be on the policy, have us a more price sensitive and and and what and cannot afford the high prices, cannot afford the high prices associated with profit maximization. If this is the target market of the specific coffee shop, they would be an intended consequence of luse of consumers. And so some poi should take, I should think about the pothink, about the poor. Yeah, Yeah. But just talk about this. It's this point. Evaluation is things like whatever it is does not impact all customers equally. That's your evaluation. You're saying this has changed and this happens, but actually this may also happen. The impact on you and the impact on me are very different. If all of a sudden all of the coffee shops in your area shut, it doesn't impact me, but it impacts you. Yeah. So there's different impacts on different people. So that's a really good evaluation point. Whatever it is doesn't impact all people equally or consumers equally. Da, da, da, da. And then this unintended consequences is a nice thing to put in. And let me I'm going to take a picture of that. Take take a picture of that. I'm going to change this next next lesson. Be something a bit more generic, something a bit more like that. You can kind of apply to every question. I think what we need to come up with is phrases and paragraphs that you can use in most essays. Do you see what I mean that you just then need to link to the essay? Because can you imagine if you learn something like this and then just have to link it to the question, would that really help you in the longer sort of questions? Yeah okay, right, we'll Carry on, have you got any questions or anything? No Okay, I'll see you soon. Okay, bye miss.