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

[Anusuya]

How can diminishing marginal utility be used to derive the demand curve??

And can the production along the PPC curve be referred as pareto optimal?? Our normal economics text book says..Allocative efficiency cannot be depicted by a PPC...bt again i found it in many other books that production in PPC is allocatively efficient.

 

[Anusuya]

How can diminishing marginal utility be used to derive the demand curve??
And can the production along the PPC curve be referred as pareto optimal??

 

[youzair]

How can diminishing marginal utility be used to derive the demand curve??
And can the production along the PPC curve be referred as pareto optimal??

Marginal Utility show us the satisfaction an individual will derive from the consumption of an extra unit.
The $ spend on 1 unit will give more utility than the last unit where utility is zero..
This trend follow the downward slope of an individual..
and demand curve is derive from the summation of individual demand curve so that's why Diminishing Marginal Utility tell us the reason why Demand Curve is downward sloping.

Pareto Optimal efficiency consist of both Allocative and Productive.
Allocative Efficiency deals with the optimum use of resources where maximum utility is gained.
Productive Efficiency is the concept of producing at the lowest of AC curve to produce output at minimum possible cost, it will be when the resources are fully employed because additional input produce more output so AP falls so as costs.

PPC shows the maximum allocation of resources an economy can make, so as the Productive Efficiency says.

 

[Anusuya]

As we can show the Productive efficiency using a PPC. can we do the same in case of alloative efficiency?? Does the production in the PPC curve mean it is allocatively efficient also??

 

[mimiswift]

As we can show the Productive efficiency using a PPC. can we do the same in case of alloative efficiency?? Does the production in the PPC curve mean it is allocatively efficient also??

Don't take the risk!

 

[Anusuya]

Don't take the risk!

Hahaha...I also think its better to remain on the safe side.
bt i had read it in Anderton's Economics third edition. (its one of the reference books). Bt our course book doesn't agree with it.

 

[youzair]

Hahaha...I also think its better to remain on the safe side.
bt i had read it in Anderton's Economics third edition. (its one of the reference books). Bt our course book doesn't agree with it.

Try to understand PPC can never show ALLOCATIVE EFFICIENCY!
what if say economy is producing more Cap goods than Con goods? is Allocative Efficiency there?
Productive Efficiency show us the full employment of resources thats why we link it to the PPC!!!

 

[mimiswift]

Hahaha...I also think its better to remain on the safe side.
bt i had read it in Anderton's Economics third edition. (its one of the reference books). Bt our course book doesn't agree with it.

Yes
It's better to be on the safer side

 

[mimiswift]

Ok....serious accounting doubts
P4-
O/N 2008- qns 1 part c- ok how did we get a goodwill of 1500

P43-M/J 2010-qns 3- part (a)1) how do we get the denominators 2800 and 3000
part (b) the MS shows labour rate is calculated like this= 1.8 X $10
how did we get 1.8???
part(d)5) how do we get 2000 (F) ??? i got 1000 (A)



ok these are my doubts
pls pls help
We have our exam tomorrow!

 

[Echelon94]

Ok....serious accounting doubts
P4-
O/N 2008- qns 1 part c- ok how did we get a goodwill of 1500

P43-M/J 2010-qns 3- part (a)1) how do we get the denominators 2800 and 3000
part (b) the MS shows labour rate is calculated like this= 1.8 X $10
how did we get 1.8???
part(d)5) how do we get 2000 (F) ??? i got 1000 (A)

ok these are my doubts
pls pls help
We have our exam tomorrow!

N08/1 (c): here

J10/3 (a) i): They are the machine hours used. Product B uses 3500kg, while 1 unit of it requires 3.5kg, so average units will be 3500/3.5 = 1000. Each unit uses 3 machine hours, hence the 3(1000) = 3000 machine hours. Same logic for Product A (4200 x 2/3).
(b): You know from part a that ave. units are 1000. 12 workers work 150 hours each in a month, that means for 1000units, they work (12 x 150)/1000 = 1.8hrs per unit.
(d) v): Just like in part b, now calculate hours per unit of Product A. It'll be (14 x 150)/1400 = 1.5hrs/unit. Multiply it by actual units to get 1.5(1600) = 2400hrs, which is your Standard Quantity for the variance formula. LEV will therefore be (2400hrs - 2200hrs) x $10 = $2000 favorable (because we worked in less hours)

 

[mimiswift]

N08/1 (c): here

J10/3 (a) i): They are the machine hours used. Product B uses 3500kg, while 1 unit of it requires 3.5kg, so average units will be 3500/3.5 = 1000. Each unit uses 3 machine hours, hence the 3(1000) = 3000 machine hours. Same logic for Product A (4200 x 2/3).
(b): You know from part a that ave. units are 1000. 12 workers work 150 hours each in a month, that means for 1000units, they work (12 x 150)/1000 = 1.8hrs per unit.
(d) v): Just like in part b, now calculate hours per unit of Product A. It'll be (14 x 150)/1400 = 1.5hrs/unit. Multiply it by actual units to get 1.5(1600) = 2400hrs, which is your Standard Quantity for the variance formula. LEV will therefore be (2400hrs - 2200hrs) x $10 = $2000 favorable (because we worked in less hours)

OMG
Thank you so much
that was great explanation btw!

 

[Echelon94]

OMG
Thank you so much
that was great explanation btw!

thanks Taylor

 

[youzair]

GOOD LUCK​

ya all ​

​

 

[youzair]

As we can show the Productive efficiency using a PPC. can we do the same in case of alloative efficiency?? Does the production in the PPC curve mean it is allocatively efficient also??

Below is the link of notes, for your revision on this topic!
LINK

 

[amirdeanz]

hey Mcqs time yet for anyone? check them when it is time.
View attachment 12317
Thanks

For no 1, you got $57 500?

 

[mimiswift]

i have accounting P3 doubts
P33-M/J 2011- qns 11- i don't understand why is it B? i chose A?
14-i understand how we got C....but what about the average stock.....how did we get it coz we have no opening stock! just closing stock!
18-how does cost per unit decrease here!?

 

[mimiswift]

P32-M/j 2010-qns 28- i used the formula here......but i got D....the MS says C!

ARR=(64-14-35)/((160-20)/2) x 100=21.43%
however this answer according to mark scheme is wrong

 

[youzair]

Economics MCQs doubts:
June 2003

Question Paper Mark Scheme​

Question:

• 2
• 16
• 20
• 21
• 22
• 25

November 2003

Question Paper Mark Scheme​

Question:

• 9
• 12
• 15
• 17
• 20
• 24
• 25
• 26

 

[mimiswift]

Economics MCQs doubts:
June 2003

Question Paper Mark Scheme​

Question:

• 2
• 16
• 20
• 21
• 22
• 25

November 2003

Question Paper Mark Scheme​

Question:

• 9
• 12
• 15
• 17
• 20
• 24
• 25
• 26

WOW REALLY COLORFUL
The qns were so hard.....i just realized i'm gonna fail my mcq eco for sure!
june 2003-22-low UE benefit payment will reduce consumption....A has nothing to do with consumption B and D will increase consumption!
25-Developing country has low capital to labour ratio
they don't have low labour ratio so D doens't count....B and C are wrong as they don't have high capital ratio!


that's all i've got for now!

 

[youzair]

WOW REALLY COLORFUL
The qns were so hard.....i just realized i'm gonna fail my mcq eco for sure!
june 2003-22-low UE benefit payment will reduce consumption....A has nothing to do with consumption B and D will increase consumption!
25-Developing country has low capital to labour ratio
they don't have low labour ratio so D doens't count....B and C are wrong as they don't have high capital ratio!


that's all i've got for now!

yeah i also think em gonna make worse of eco p3...
very low score...dont know how to increase the num of correct mcqs...
22----i got it now... Jazka'ALLAH Khair....
25---why D is not the ans? productivity is low in developing eco?