June 2013 - Context 1
The Provision of Higher Education in the UK
1) Define the term ‘subsidies’ (Extract B, line 4)
A subsidy is a payment from the government to either the producers or the consumers of a
good, or to both. It decreases the cost of production for the producers, therefore
increasing the supply of the good and it decreases the cost of the good for consumers,
thus increasing the demand for the good. This is usually done with merit goods where the
market mechanism tends to under-provide such goods.
2) Using Extract A, identify two significant points of comparison between the number
of students on full-time courses and those on part-time courses over the period shown.
One significant point of comparison between the number of students on full-time courses
and those on part-time courses over the period shown is that the number of full-time
undergraduate students increased nearly 3 fold from 473 thousand to 1328 thousand
between 1980/81 and 2008/09. In comparison, the number of students in full-time
postgraduate courses increased by a larger percentage (over 4 fold) from 62 thousand to
269 thousand over the period of 1980/81-2008/09.
Another significant point of comparison is that the number of students in part-time
undergraduate courses increased almost 3 fold from 247 thousand to 686 thousand over
the period 1980-2008. In comparison, the number of students in part-time postgraduate
courses increased by a larger percentage (6 fold) from 45 thousand to 274 thousand
between 1980 and 2008.
The Provision of Higher Education in the UK
1) Define the term ‘subsidies’ (Extract B, line 4)
A subsidy is a payment from the government to either the producers or the consumers of a
good, or to both. It decreases the cost of production for the producers, therefore
increasing the supply of the good and it decreases the cost of the good for consumers,
thus increasing the demand for the good. This is usually done with merit goods where the
market mechanism tends to under-provide such goods.
2) Using Extract A, identify two significant points of comparison between the number
of students on full-time courses and those on part-time courses over the period shown.
One significant point of comparison between the number of students on full-time courses
and those on part-time courses over the period shown is that the number of full-time
undergraduate students increased nearly 3 fold from 473 thousand to 1328 thousand
between 1980/81 and 2008/09. In comparison, the number of students in full-time
postgraduate courses increased by a larger percentage (over 4 fold) from 62 thousand to
269 thousand over the period of 1980/81-2008/09.
Another significant point of comparison is that the number of students in part-time
undergraduate courses increased almost 3 fold from 247 thousand to 686 thousand over
the period 1980-2008. In comparison, the number of students in part-time postgraduate
courses increased by a larger percentage (6 fold) from 45 thousand to 274 thousand
between 1980 and 2008.
