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Economics, Accounting & Business: Post your doubts here!

shahz_h

shahz_h

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Esme said:
yes it is. if you have the second edition of economics book go to page 263 and read that part about J-curve and if you dont understand then come back here.
Click to expand...
I have read it many times but has failed to understand!!So I wud appreciate if you would explain it briefly.
nd one more doubt in my book which u mentioned it is for A2 level nd not for AS.
 
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reina81

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I have a very silly doubt, I don't get normative and positive statements. I know normative statements express an opinion but every time i solve these Ques, I get them wrong. So please help.
 
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Hassi123

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shahz_h

shahz_h

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reina81 said:
I have a very silly doubt, I don't get normative and positive statements. I know normative statements express an opinion but every time i solve these Ques, I get them wrong. So please help.
Click to expand...
I hav da same problem too!!:)
 
Mad Gal

Mad Gal

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Hassi123 said:
Im panicking right now, economics p12 tomorrow, can someone please solve these questions and till me the logic to it!​
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PLEASE HELP!!!!! THANKS A MILLLION​
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http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_11.pdf Que 1 - Opt A B n D will lead to a outward or inward shift of the PPF. Only opt C will result with ineffiency. - unemployment.
Que 7 - Ans D coz increase in wage rates will increase the firm' cost of prod and hence make it shift to the left and the change in consumer preference will shift the demand curve, however it creates a upward movement along the supply curve!
Que 11- All the supply curves start through the origin, which makes it unitary elastic.

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w06_qp_1.pdf
Que 10 - low PES means that the supply is insensitive to any change in price. So no matter how high a price is the producers are not at a position to increase their supply. SO when goods are perishable, this will be the case!
Que 11- Failure in a major coffee producer will make the supply curve of COFFEE to shift to the left. Prices go up FOR COFFEE. Since coffee and tea are substitutes, rise in pprice will lead to a increase in the demand for tea. So ans = C

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf
Que 1 - ans = D this is becoz, when you consume more, you're opportunity cost will be the interest you would have obtained, had you invested the money elsewhere.
Que 7 - Its unitary elastic. So change in price will lead to a equal % change in Qd. However the tot.spending has to remain the same.

Got it??
 
Mad Gal

Mad Gal

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mimiswift said:
qns 3- i tried placing values but it showed fall in opportunity cost! can you explain with values!
qns 11-ohh.....i get it thanks alot!
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Am so sorry i dont have a way of showing you. :/
A curve like that, has increasing opportunity cost. For eg, lets say Country A is producing is guns and butter.
I'l sorta give you the guidelines, see if u can put it in a diagram? I know its gonna get annoying. buh its worth it :)
Assume Y axis as butter and the other guns. (Max of butter 300 and Max of guns 200)
Assume the current level of production is 250 butter and 100 guns.
Then assume the country decides to produce more of guns, and increases production to 180, this will reduce production of butter to 200. Find the O/C of this decision. It = 0.625
Then again assume. the economy chooses to produce more of guns and increases to the max level, 200. Now the O/C will be 10.
Now do you see that the O/C has increased from 0.625 to 10??

I hope i dint end up confusing you. Buh am sorry, this was the only way i could assist you :/
Hope i did some help?!
(i made up the diagram when typing this, and it worked. Just try it :)
 
Mad Gal

Mad Gal

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I guess i'll be the first to do the paper before all of you'll?!?!
Plz help me with my doubts. I have posted them twice.! Please and thank you!!
I AM SO FREAKED OUT TOO!!!
GOOD LUCK EVERYONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! DO WELL (y)
 
Paradoxical

Paradoxical

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Mad Gal said:
I guess i'll be the first to do the paper before all of you'll?!?!
Plz help me with my doubts. I have posted them twice.! Please and thank you!!
I AM SO FREAKED OUT TOO!!!
GOOD LUCK EVERYONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! DO WELL (y)
Click to expand...

I'll try answering question 20. Yes, it is to do with trade diversion. Trade between X and W will decrease as W has a tariff on its goods and because X has joined the customs union it can buy goods from Y and Z without any tariff. Trade between Y and Z will decrease because X has entered the customs union and they will both also trade with X.

Hope it helped. ^_^
 
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Hassi123

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Mad Gal said:
http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_11.pdfQue 1 - Opt A B n D will lead to a outward or inward shift of the PPF. Only opt C will result with ineffiency. - unemployment.
Que 7 - Ans D coz increase in wage rates will increase the firm' cost of prod and hence make it shift to the left and the change in consumer preference will shift the demand curve, however it creates a upward movement along the supply curve!
Que 11- All the supply curves start through the origin, which makes it unitary elastic.

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w06_qp_1.pdf
Que 10 - low PES means that the supply is insensitive to any change in price. So no matter how high a price is the producers are not at a position to increase their supply. SO when goods are perishable, this will be the case!
Que 11- Failure in a major coffee producer will make the supply curve of COFFEE to shift to the left. Prices go up FOR COFFEE. Since coffee and tea are substitutes, rise in pprice will lead to a increase in the demand for tea. So ans = C

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf
Que 1 - ans = D this is becoz, when you consume more, you're opportunity cost will be the interest you would have obtained, had you invested the money elsewhere.
Que 7 - Its unitary elastic. So change in price will lead to a equal % change in Qd. However the tot.spending has to remain the same.

Got it??
Click to expand...
thankyou so much! you saved me!!! except can you explain the s06 qp1 question 1 again, the one one interest rate and opportunity cost? thank you SO much!
 
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reina81

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I have a very small doubt, I don't get normative and positive statements. I know normative statements express an opinion but every time i solve these Ques, I get them wrong. So please help I posted this earlier as well. Really need help!!!
 
mimiswift

mimiswift

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reina81 said:
I have a very small doubt, I don't get normative and positive statements. I know normative statements express an opinion but every time i solve these Ques, I get them wrong. So please help I posted this earlier as well. Really need help!!!
Click to expand...
even i get a few wrong....but what i do with it is......normally they ask us to find normative statements and i see the option and i think whether what they are saying is proven.....like some info i know that makes it a positive statement and then cancel out wrong options
hope this helps!
 
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