• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

A2 ECONOMICS: Guess Paper-4

Status
Not open for further replies.
Messages
1,260
Reaction score
676
Points
123
7B. MC at 1st unit of output shows that we have some cost at zero level of output as well. As Mc is the difference of cost at different level of output, so we can easily find out the cost at zero level of output and that will be the fixed cost. As the difference between 200 and fixed cost is 20, it means fixed cost will be 180. Now if we divide FC with 6 then we will get 30. So, AFC is $ 30.
 
Messages
111
Reaction score
5
Points
28
1.oct nov 05 question 2 pls help how to find this..
2. anyone knows what is income velocity of circulation of money ?
 
Messages
1,260
Reaction score
676
Points
123
I am going to offer prayer. keep on discussing with each other. I will be back soon inshaAllah.
 
Messages
1,260
Reaction score
676
Points
123
May/june 2004 Question 13 please..
I dont get the question..
i will explain it to you after offering my prayer. if anyone can help then plz come forward. its very simple situation. I wish you should have studied my books!
 
Messages
1,260
Reaction score
676
Points
123
Messages
71
Reaction score
10
Points
8
Can someone please tell me how a rise in the volume of output will cause the interest rates to rise?? it is in one of the mcq.. i dont understand..
Qamar Baloch
 
Messages
138
Reaction score
16
Points
28
rise in productivity shifts the curve toward right.
see below correct
5B Interest rate is cost of capital. So, increase in cost of capital will lead the people to use more labour and less capital (machinery), given that capital and labour are substitutes of each other.

Oh i get it, JazakAllah! :)

When u get back from prayers, please answer Q17 same paper too. I don't get the how liquidity trap affects output? It was related to interest rate not falling anymore, wasnt it
 
Status
Not open for further replies.
Top