Economics, Accounting & Business: Post your doubts here!

[SamiaSaad]

But isnt quota wen u decrease the number of goods coming into the country?

Yes Quota means a limited number of good are allowed in a country. For e.g Govt imposes a quota in which only 3000 cars are allowed to be imported. But when someone says that the quota has increase it means that the number of cars allowed in the country has increased for e.g now 3100 imported cars are allowed. This shows that the country's protection against imported cars has decreased.

I'm not good at explaining but I have tried my best

 

[:: A^]

Isnt the money suply wen the Central Bank prints money?

You still have to come to A2 sis

 

[SitiPutri]

How can surplus increase money suply?

Surplus in current account: Exports > imports. If exports > imports, demand for domestic currency rises thus there will be increase in money supply in the country.

 

[SamiaSaad]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w07_qp_1.pdf
Q6 ayone?

The answer is C

% change in price =4500-5000/5000 * 100 = -10%
Cross elasticity of demand = 20/-10 = -2

 

[Crimson-Saint]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w07_qp_1.pdf
Q6 ayone?

to do this u first use the formula of XED which is %change in qd of x/ % change in price of y in the question the xed is given -2 and qd %change is given 20 solve for X (with "X" being the %change in price of y) and u get -10 u then look through the choice and see what price change gives u -10 in this case opttion C is the one so answer is c

 

[Crimson-Saint]

why is the answer B isnt it that country 1 has an absolute advantage in X ? not y?

 

[Crimson-Saint]

Please explain me this question.
Thanks in advance

SitiPutri can u answer this one? ugghhh look at the previous page of this thread to see the question

 

[SamiaSaad]

View attachment 42407

why is the answer B isnt it that country 1 has an absolute advantage in X ? not y?

Country 1 also has a lower opportunity cost in producing X than country 2 that is why the answer is B

 

[Sarah Paul]

Check this qstn out :
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w06_qp_1.pdf Q20

You still have to come to A2 sis

LOL

 

[Sarah Paul]

View attachment 42407

why is the answer B isnt it that country 1 has an absolute advantage in X ? not y?

You gotto look at each and every option and choose the most appropriate one

 

[Sarah Paul]

The answer is C

% change in price =4500-5000/5000 * 100 = -10%
Cross elasticity of demand = 20/-10 = -2

to do this u first use the formula of XED which is %change in qd of x/ % change in price of y in the question the xed is given -2 and qd %change is given 20 solve for X (with "X" being the %change in price of y) and u get -10 u then look through the choice and see what price change gives u -10 in this case opttion C is the one so answer is c

Thanks

 

[SitiPutri]

SitiPutri can u answer this one? ugghhh look at the previous page of this thread to see the question

Can't do it lol it's my doubt as well. Could anyone do this please?

 

[Lostsoul]

im giving AS

AS & A2

 

[Sarah Paul]

http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w08_qp_1.pdf
Why is the answer D?

 

[Lostsoul]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w08_qp_1.pdf
Why is the answer D?

Question?

 

[Sarah Paul]

Question?

Again :O
Question 24

 

[SitiPutri]

Can't do it lol it's my doubt as well. Could anyone do this please?

Eh wait I think I got it.

Okay so X, Y, Z possess 4 clocks at the same time. But it can't be like that because then the price for the clocks will vary from one collector to another (If X possess 4 clocks then the price of each clock is $1000 and if Y possess 4 clocks then the price of each clock is $2000. Thus the price is not fixed)

So, X, Y, Z come together to trade between each other in order to get a fixed price. Now look, when X possess 4 clocks, the price is $1000. On that price, Y could buy 6 clocks and Z could buy 9 clocks. But they can't trade because Y needs additional 2 clocks while Z needs additional 5 clocks.

And when Y possess 4 clocks, the price is $2000. On that price, X could only buy 2 clocks and Z could buy 6 clocks. X then has to sell 2 clocks and Z has to buy 2 clocks in order to satisfy their demand schedule. Thus, trade will happen between X and Z with X as the seller and Z as the buyer.

Hope that makes sense haha if there's anyone else that could explain this better than me it'd be great!

 

[Sarah Paul]

Eh wait I think I got it.

Okay so X, Y, Z possess 4 clocks at the same time. But it can't be like that because then the price for the clocks will vary from one collector to another (If X possess 4 clocks then the price of each clock is $1000 and if Y possess 4 clocks then the price of each clock is $2000. Thus the price is not fixed)

So, X, Y, Z come together to trade between each other in order to get a fixed price. Now look, when X possess 4 clocks, the price is $1000. On that price, Y could buy 6 clocks and Z could buy 9 clocks. But they can't trade because Y needs additional 2 clocks while Z needs additional 5 clocks.

And when Y possess 4 clocks, the price is $2000. On that price, X has to sell 2 clocks and Z has to buy 2 clocks in order to satisfy their demand schedule. Thus, trade will happen between X and Z with X as the seller and Z as the buyer.

Hope that makes sense haha if there's anyone else that could explain this better than me it'd be great!

Is the answer D?

 

[trao11]

AS Paper 12 tomorrow. All the best to everyone.
By the grace of God, we will all do well.

 

[SitiPutri]

Is the answer D?

Yes.