A Level Economics:

[Sarah Paul]

1 WEEK BEFORE EXAM

ok thanks

 

[zara97]

sir qamar, what r govt.'s direct intervention policies n the price of equities???
n can u plz explain the above mcq again.

 

[TheZodiac]

View attachment 38094 sir qamar, what r govt.'s direct intervention policies n the price of equities???
n can u plz explain the above mcq again.

Is the answer B?
This MCQ test the concept of monetary trasmission mechanisim.

 

[:: A^]

Can someone answer the section A of this paper :/
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_w09_qp_42.pdf

 

[David Hussey]

oh man you guys are scaring me

 

[Sarah Paul]

oh man you guys are scaring me

LOL why?

 

[David Hussey]

LOL why?

i cant answer any of your questions

 

[Sarah Paul]

uve gt time

 

[Sarah Paul]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

 

[Qamar Baloch]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

ok dear I WILL POST THE ANSWERS VERY SOON AS I GET SOME TIME. HOWEVER, OTHERS WHO ARE WATCHING THIS THREAD MAY CONTRIBUTE THEIR EFFORT. THANK YOU

 

[Sarah Paul]

ok dear I WILL POST THE ANSWERS VERY SOON AS I GET SOME TIME. HOWEVER, OTHERS WHO ARE WATCHING THIS THREAD MAY CONTRIBUTE THEIR EFFORT. THANK YOU

Yes sure waiting

 

[TheZodiac]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

19) It's easy, just calculate the opportunity cost ratio and you'd get the answer
M
1Y = 2X
1X = 0.5Y

N
1Y =4X
1X =0.25Y

As you can see that the exchange rate ratio is in between the countries production opportunity cost ratio. So A would be the answer.

24) D because the price level would continue to rise regardless of the percentage change.
Consider $100, the initial price, apply the percentages in the MCQ and you'd notice that it'd be the highest at the end so technically, it would be the lowest at the start.

 

[Sarah Paul]

19) It's easy, just calculate the opportunity cost ratio and you'd get the answer
M
1Y = 2X
1X = 0.5Y

N
1Y =4X
1X =0.25Y

As you can see that the exchange rate ratio is in between the countries production opportunity cost ratio. So A would be the answer.

24) D because the price level would continue to rise regardless of the percentage change.
Consider $100, the initial price, apply the percentages in the MCQ and you'd notice that it'd be the highest at the end so technically, it would be the lowest at the start.

Thnkz

 

[TheZodiac]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

27) D because when competition increases, the exchange rate has to be lowered or else our exports would become incompetitive. Inflation would fall because the imported goods would also be lower in price due to international competition.

18) This is very simple. Observe the diagram closely. The firm buys all the supply at maximum price, this is isn't such relevant to our answer so let's ignore it for a moment. But the firm sells illegally, at the highest price possible. To do this, the highest price would be OS, the firm would only supply OX quantity of goods for price OS and therefore the maximum revenue would be OSTX D

 

[TheZodiac]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

12) Observe that the demand curve in this case is elastic while the supply is in-elastic. Now the question says that specific tax is imposed, when it is done so, the price would increase. In case if a good is elastic and price is increased, the maximum tax burden is beared by the producer. Also the supply is in-elastic, it means producer cannot cut back the supply easily and therefore producer would have to pay the max tax burden so answer is A

 

[Sarah Paul]

12) Observe that the demand curve in this case is elastic while the supply is in-elastic. Now the question says that specific tax is imposed, when it is done so, the price would increase. In case if a good is elastic and price is increased, the maximum tax burden is beared by the producer. Also the supply is in-elastic, it means producer cannot cut back the supply easily and therefore producer would have to pay the max tax burden so answer is A

thanks

 

[TheZodiac]

Need help in the following questions:
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s04_qp_1.pdf Q25
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf Q19 24 and 27
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf Q8 and 12
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_s12_qp_12.pdf Q17
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w04_qp_1.pdf Q24

With explanations

17) this one gave me a hard time when I was in AS
It's very simple if you observe it. Farmer income = $5 x 2000 = $10000
Now move the demand curve until the quantity x price = $10000
Now when you change the quantity demanded by 1000, the new equillibrium comes at price $2 and demand 5000 which gives income $10000 which is unchanged.

 

[zara97]

Is the answer B?
This MCQ test the concept of monetary trasmission mechanisim.

No the answer is D. But what is the price of equities?? is it the cost of investments or something??

 

[Sarah Paul]

What are the advantages and disadvantages of Trade blocs?

 

[TheZodiac]

No the answer is D. But what is the price of equities?? is it the cost of investments or something??

Got it. I was confused with B and D.
Price of equity is the interest rate. The price of money is interest rate, equity is the capital and when it's obtained, interest has to be paid.
But what I don't get is that when interest rate decreases, the money supply must have increased, according to liquidity preference theory. And if money supply increases, this means that velocity of circulation increases not decreases? I'd ask my teacher to help me out in this MCQ and then I'd let you know.