A2 Commerce Group |Post your doubts here (Accounts, Eco, B.Std & Stats 2)

[Echelon94]

hi can u explain me M/J 2010 73 Q2 (iii) plz? thx

sorry one of the questions I don't know myself.

Like you are given the significant level % as 10% initially & you calculated z to be ±1.645, in part (iii) you have zt = ±1.75 & you need to calculate the significance level %.
Φ(-1.75)=0.0401 & this is a two-tail test so significance level will be 2(4.01)=8.02%, which correct to nearest whole number will be 8%.

 

[hitmAn2]

Crowding Out is a phenomenon occurring when Expansionary Fiscal Policy causes Interest Rates to rise, thereby reducing investment spending. Governments often borrow money (by issuing bonds) to fund additional spending. Increased govt. borrowing tends to increase the market interest rates. The problem is that the govt. can always pay the market interests rates, but there comes a point where corporations & individuals can no longer afford to borrow due to high interest rates. The govt. debt 'crowds out' private companies & individuals from the lending market.

Source: wikipedia.org & investopedia.com

Thanks Echelon! Thanks alot

 

[redapple20]

Lady luck

 

[redapple20]

It means he wants " luck " to b wid him!!!!

 

[redapple20]

Array yar luck!!!!! Best of LUCKKKK!

 

[Echelon94]

Array yar luck!!!!! Best of LUCKKKK!

haha, sorry...thanks...you too

 

[2pac]

June or Nov?

may,sorry for not mentioning it before.

 

[Echelon94]

hey could you please help me with some s2 doubts.Can't seem to understand q2 part i of 2009 72.Please reply whenever you can.
thanks

may,sorry for not mentioning it before.

Get the µ by simply calculating the average of the interval values which will be 227.1; then for 97% confidence interval, the z will be 2.17, so put the values of z & µ in the formula of confidence interval for any of the 2 values & you'll get the value of σ^2 265.

 

[2pac]

Get the µ by simply calculating the average of the interval values which will be 227.1; then for 97% confidence interval, the z will be 2.17, so put the values of z & µ in the formula of confidence interval for any of the 2 values & you'll get the value of σ^2.

Do you know which continuity correction we should use in central limit theorem?Normally we would + or - 0.5 but have seen past papers use 1/2n instead.

 

[2pac]

q1 of may 07 related with central limit theorem.1/2n is used for continuity correction,why is that?

 

[2pac]

1st, this type of question came only once in 10 years
2nd, the marking scheme clearly mentions 2 answers, one with C.C. applied & one without it & both were accepted
3rd, do you have the S2 book by Steve Dobbs & Jane Miller? The 1/2n thing is explained in Example 4.4.2 (pg68 in my edition). If you dont have it, YES 1/2n is used for continuity correction in case of Sample Mean only.

oh ok then its a relief to know that they accept two answers and yeah thanks for the book information.Never knew it was so informative
So,according to you,there any specific concept I should concentrate for this year's paper.I am expecting a different format this year because of the pattern of m1.m2,s1,p3 etc.Conceptual questions will surely be asked,so any tips?

 

[redapple20]

Yeah! Read the book Steve dobbs

 

[kagome]

Like you are given the significant level % as 10% initially & you calculated z to be ±1.645, in part (iii) you have zt = ±1.75 & you need to calculate the significance level %.
Φ(-1.75)=0.0401 & this is a two-tail test so significance level will be 2(4.01)=8.02%, which correct to nearest whole number will be 8%.

Is it always negative?? --> Φ(-1.75). How do u know its negative when the question doesn't mention anything?? I am confused...

 

[kagome]

Help again please M/J 2010 71 Q7(i). How to calculate the probability of type 1 error?? Thx

 

[mimiswift]

I have doubts in P3 economics
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s04_qp_3.pdf
qns 3- can anyone pls explain why other options are wrong
(answer is C)

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s06_qp_3.pdf
Qns 14-why is it C!
Qns 20- how do we get D? Plus if anyone has A2 formulas summarized pls do share with me!

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s07_qp_3.pdf
qns3- why D? why not B?
qns7-why A?i don't understand how the diagram works!

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s08_qp_3.pdf
qns 25- how does oil apply here....i taught it was A?


http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w02_qp_3.pdf
qns 11- answer is A.....isn't it productive effeciency
qns 14-answer is D
qns-16- answer is C
qns 24-answer is A....i got B
qns 25-answer is C

 

[youzair]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w02_qp_3.pdf
qns 11- answer is A.....isn't it productive effeciency

Allocative Efficiency state that when all the resources are put to optimum level output following the demand, so it means we cant switch our production without reducing the output of formerly produce good!
because at optimum level all resources are fully employed for the production of that good to maximise the return, if any firm wishes to produce other good than the Opportunity Cost of producing different good will be there.

Productive Efficiency approach the concept of producing good with the least possible cost!

Pareto defined allocative efficiency as a situation where no one could be made better off without making someone else at least as worth off.
Source

 

[mimiswift]

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w03_qp_3.pdf
qns 2-how to calculate

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w04_qp_3.pdf
qns 6-why not B.......why D shouldn't it result in fall in demand
qns 30-answer is A
'
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w07_qp_3.pdf
qns 17-i chose B but answer is A!

 

[mimiswift]

Allocative Efficiency state that when all the resources are put to optimum level output following the demand, so it means we cant switch our production without reducing the output of formerly produce good!
because at optimum level all resources are fully employed for the production of that good to maximise the return, if any firm wishes to produce other good than the Opportunity Cost of producing different good will be there.

Productive Efficiency approach the concept of producing good with the least possible cost!

thanks
got it

 

[Zephyro]

I have doubts in P3 economics
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s04_qp_3.pdf
qns 3- can anyone pls explain why other options are wrong
(answer is C)

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s06_qp_3.pdf
Qns 14-why is it C!
Qns 20- how do we get D? Plus if anyone has A2 formulas summarized pls do share with me!

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s07_qp_3.pdf
qns3- why D? why not B?
qns7-why A?i don't understand how the diagram works!

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s08_qp_3.pdf
qns 25- how does oil apply here....i taught it was A?


http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w02_qp_3.pdf
qns 11- answer is A.....isn't it productive effeciency
qns 14-answer is D
qns-16- answer is C
qns 24-answer is A....i got B
qns 25-answer is C

1 MRPL = MPP * MR
MPP falls as more of a factor is employed it usually gets subject to diminishing factor returns. Similiarly MR falls as supply is generally being increased or you could try it picture it on a diagram.

2 The firm will charge the customers the maximum price allowed. Productive efficiency does not really have any bearing on this. An increase in Prod efficiency would mean that they now product at an output where average costs are lower then before. That serves no benifit to customers as the price is still charged at the maximum. Shareholders how benifit from increased profits/lower costs.

3 mpc = 0.8 Multiplier = 1/(1-0.8) = 5 Increase in 100 would cause a total of 500.

4 D because the consumer can now buy more of one good without sacrificing any of the other. In real terms, his income has increased. Option C would imply that the consumer now earns more. You cant be sure of that, the price might have fallen for example. All you can be sure of is D.

5 Before the negoitated wage rate OW, firms would have been able to employ the workers at a much lower rate. Basically in the diagram see where MCL and MRPL intersect, now keep going down untill you see the same point on the supply of labour curve. They would be able to employ people at that wage rate. The negotiated wage rate however increases the wage rate and also intersects the supply curve at a further interval. More people are willing to work at this wage rate, so the number employed increase.

6 E1 to E2 implys that Demand has increased aswell as supply. You thought it was A, but an increase in propensity to save would only increase supply, it would not touch demand. Bank lending is also supply. Discovery of oil reserves assumes that people will be looking to invest in it and so demand will increase. Answer B.

7 It's actually called pareto efficiency but has the same meaning in economic terms as allocate efficiency. Productive efficiency implys a point on the PPC curve. Keep in mind that there are different points, more of one good can be substituted for less of another good. One can be made worse off in this case. The only real thing it means is that resources are allocated to the full extent, which by what the person above me said means that costs are kept lower.

8 Not sure what the problem is here, its a textbook definition.

9 Expenditure increased so it would naturally be one of the E's above the initial E. As the standard rate of income tax is higher, consumers are less likely to spend as much as before. So while the initial expendiute is higher because of the government the slope of the E curve has changed to show that while Income increases Expendiute does not increase as much as before.

10 mpc = 4/5 1-mpc = 0.2 1/0.2 = 5 Multiplier = 5. An increase in 1 mill would make it 5 mill which would change 20 to 25, thereby closing the gap.

11 A and B would help improve the recession. D would aswell. The only real option left is C. Maintaining a constant ratio of stocks to sales means that firms do not account for the change in demand and prices are unlikely to change or go lower.

 

[mimiswift]

1 MRPL = MPP * MR
MPP falls as more of a factor is employed it usually gets subject to diminishing factor returns. Similiarly MR falls as supply is generally being increased or you could try it picture it on a diagram.

2 The firm will charge the customers the maximum price allowed. Productive efficiency does not really have any bearing on this. An increase in Prod efficiency would mean that they now product at an output where average costs are lower then before. That serves no benifit to customers as the price is still charged at the maximum. Shareholders how benifit from increased profits/lower costs.

3 mpc = 0.8 Multiplier = 1/(1-0.8) = 5 Increase in 100 would cause a total of 500.

4 D because the consumer can now buy more of one good without sacrificing any of the other. In real terms, his income has increased. Option C would imply that the consumer now earns more. You cant be sure of that, the price might have fallen for example. All you can be sure of is D.

5 Before the negoitated wage rate OW, firms would have been able to employ the workers at a much lower rate. Basically in the diagram see where MCL and MRPL intersect, now keep going down untill you see the same point on the supply of labour curve. They would be able to employ people at that wage rate. The negotiated wage rate however increases the wage rate and also intersects the supply curve at a further interval. More people are willing to work at this wage rate, so the number employed increase.

6 E1 to E2 implys that Demand has increased aswell as supply. You thought it was A, but an increase in propensity to save would only increase supply, it would not touch demand. Bank lending is also supply. Discovery of oil reserves assumes that people will be looking to invest in it and so demand will increase. Answer B.

7 It's actually called pareto efficiency but has the same meaning in economic terms as allocate efficiency. Productive efficiency implys a point on the PPC curve. Keep in mind that there are different points, more of one good can be substituted for less of another good. One can be made worse off in this case. The only real thing it means is that resources are allocated to the full extent, which by what the person above me said means that costs are kept lower.

8 Not sure what the problem is here, its a textbook definition.

9 Expenditure increased so it would naturally be one of the E's above the initial E. As the standard rate of income tax is higher, consumers are more likely to spend as much as before. So while the initial expendiute is higher because of the government the slope of the E curve has changed to show that while Income increases Expendiute does not increase as much as before.

10 mpc = 4/5 1-mpc = 0.2 1/0.2 = 5 Multiplier = 5. An increase in 1 mill would make it 5 mill which would change 20 to 25, thereby closing the gap.

11 A and B would help improve the recession. D would aswell. The only real option left is C. Maintaining a constant ratio of stocks to sales means that firms do not account for the change in demand and prices are unlikely to change or go lower.

Thanks alot