A Level Economics:

[Qamar Baloch]

I will cz i gt those cleared

ok dear. thats nice

 

[Qamar Baloch]

The important thing is not to stop questioning.

 

[Qamar Baloch]

Distinctions list June 2013

 

[Qamar Baloch]

Distinctions list Nov 2013

 

[AlphaBeta]

Whats automatic stabilizer??

 

[Qamar Baloch]

Whats automatic stabilizer??

its progressive tax which works as a fiscal drag during boom and fiscal boost during recession. it brings stability and avoids too much fluctuation.

 

[AlphaBeta]

waht is economic rent and transfer earnings ....please explain with diagram

 

[AlphaBeta]

its progressive tax which works as a fiscal drag during boom and fiscal boost during recession. it brings stability and avoids too much fluctuation.

is it only progressive tax??

 

[Qamar Baloch]

is it only progressive tax??

yes

 

[Qamar Baloch]

waht is economic rent and transfer earnings ....please explain with diagram

Transfer earning is the earning from next best alternative job while economic rent is the difference between original earning and transfer earning.
for example if a person was earning $1000 from his initial job. he left that job and joined the other one at a salary of $800. therefore, $800 is his transfer earning and the difference between 1000 - 800= $200 which he is sacrificing is economic rent.
See the followng graph and hope you can understand the graph and can read it.

 

[AlphaBeta]

Transfer earning is the earning from next best alternative job while economic rent is the difference between original earning and transfer earning.
for example if a person was earning $1000 from his initial job. he left that job and joined the other one at a salary of $800. therefore, $800 is his transfer earning and the difference between 1000 - 800= $200 which he is sacrificing is economic rent.
See the followng graph and hope you can understand the graph and can read it.

jazakallah

 

[Qamar Baloch]

jazakallah

You are always welcome dear. God bless you

 

[AlphaBeta]

how is the answer D

 

[Qamar Baloch]

how is the answer D View attachment 36802

22D When interest rate is low people will hold money with themselves instead of keeping then in bank account. So, its circulation velocity will fall because lending and borrowing will tend to decrease money will stop changing hands.

 

[AlphaBeta]

22D When interest rate is low people will hold money with themselves instead of keeping then in bank account. So, its circulation velocity will fall because lending and borrowing will tend to decrease money will stop changing hands.

but as people are holding money with themselves velocity circulation would increase because the dont save ,they spend more
and why is lending and borrowing decreasing when intrest rate falls?

 

[Qamar Baloch]

but as people are holding money with themselves velocity circulation would increase because the dont save ,they spend more
and why is lending and borrowing decreasing when intrest rate falls?

Borrowers will be willing to get loans due to low interest but on the other hand those who havefunds will not be willing to give loan.

 

[Qamar Baloch]

Hope preparation is going well. In case you have any doubt in O/ AS or A Level Economics, you may post it here and I will try to reply at the first available time IA.

 

[:: A^]

How can the MC curve of a perfectly competitive firm affect the supply curve of the industry?

 

[zara97]

Borrowers will be willing to get loans due to low interest but on the other hand those who havefunds will not be willing to give loan.

but sir, once interest rates fall, shoudn't consumption increase, being the next best alternative to saving and investment?? and what is the 'price of equities' mentioned in option 2 opf the posted mcq?

 

[AlphaBeta]

but sir, once interest rates fall, shoudn't consumption increase, being the next best alternative to saving and investment?? and what is the 'price of equities' mentioned in option 2 opf the posted mcq?

i first thought it is A