A Level Economics:

[Muhammad Bin Anis]

hey bro do u take accounts for A level!!
need help??

giving AS eco in nov

 

[parthrocks]

giving AS eco in nov

Hello one more doubt can anyone plzz solve it....
....i mean when MC=0????any idea
when is avergae total cost equal to teh avaerage fixed cost

 

[Muhammad Bin Anis]

hey bro do u take accounts for A level!!
need help??

yeah m to give A2 accounts in june

 

[shanky631]

In a closed economy, households pay $0.40 in tax on every $1 increase in their gross income,
and spend 5/6 of every increase in their disposable income.
What is the value of the multiplier?
the correct ans is 2. how??? can someone show me with full calculations?

 

[shanky631]

parthrocks any idea

 

[parthrocks]

In a closed economy, households pay $0.40 in tax on every $1 increase in their gross income,
and spend 5/6 of every increase in their disposable income.
What is the value of the multiplier?
the correct ans is 2. how??? can someone show me with full calculations?

Can u tell me which paper is this plzzzzzzz

 

[parthrocks]

In a closed economy, households pay $0.40 in tax on every $1 increase in their gross income,
and spend 5/6 of every increase in their disposable income.
What is the value of the multiplier?
the correct ans is 2. how??? can someone show me with full calculations?

Bro simply subsitute in the formlae and u willl get the answer easily

 

[shanky631]

Bro simply subsitute in the formlae and u willl get the answer easily

Show plz.

 

[shanky631]

Can u tell me which paper is this plzzzzzzz

Oct 2004

 

[parthrocks]

Oct 2004

see bro
ok
apply the formulae for multiplier as 1/1-mpc
or 1/mps
i feel the latter one is quite complicated
anyways when putting it in the first one
look they say that tax paid is 0.40 and so 5/6 of the left over money after paying tax is spent....
thus u get exact 0.50
then put
1/1-0.50
So therefore,the multiplier is 2......
post some more plz

 

[shanky631]

It is a three sector economy so mrt will also come

 

[parthrocks]

It is a three sector economy so mrt will also come

But bro only the households and firms come into the picture...no information given abt govt

 

[shanky631]

Taxation means government sector included

 

[parthrocks]

Taxation means government sector included

Ta you get the same answer with that formuale also

 

[shanky631]

Yup

 

[Qamar Baloch]

thanks a lot sir. u have explained it very well.

you are always welcome dear. and you are also expected to help others whatever you can.

 

[Qamar Baloch]

Sir thanks a lot no one explained me so well.....not my teacher....also
tahnkssssssssssssssssssss

you are always welcome dear and you are expected to help other whatever is in your possibilities.

 

[Qamar Baloch]

Hello one more doubt can anyone plzz solve it....
....i mean when MC=0????any idea
when is avergae total cost equal to teh avaerage fixed cost

average total cost will be equal to average fixed cost when total cost is composed of only fixed cost and there is no variable cost.
AC = AFC + AVC
AC = AFC + 0
Further marginal cost will be zero if cost is only fixed cost. As we know that fixed cost is the cost which does not change due to change in output while marginal cost is found by calculating change in cost and when there is no change in fixed cost there will be zero marginal cost.
Furthermore marginal cost is totally dependent upon variable cost and when variable cost is zero marginal cost will also be zero. hope you will get my point.

 

[urvesh]

Hi sir,

Can you please explain Q6 from - http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w10_qp_32.pdf

Thank you!

 

[parthrocks]

Hi sir,

Can you please explain Q6 from - http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w10_qp_32.pdf

Thank you!

Look bro we have to find the marginal cost per day!!
thus
101*302=new cost of total wage paid=30502
and subtract the old one as margoinal cost is the extra cost involved
thus 100*300=30000
and now subtracting u get 30502-30000=502 is the additonal extar cost involved!!eaasy!!
bt make sure from Qamar Baloch
sir