A2 ECONOMICS: Guess Paper-4

[naheelnisar]

oct nov 05 question 22 pls help

 

[Ratokursi]

27) what would be most likely in the short run to cause an increase in a country's unemployment rate?

ans: a) an increase in its potential output.

Why is this so?

For increase in potential output, Investment has to increase, for which people will have to increase Savings instead of Consumption (Since increased savings would reduce interest rate, thus encouraging investors to borrow). This might cause decline in AD and thus decrease in output/ increase in unemployment in the short run.

 

[Anusuya]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s08_qp_3.pdf
ques 9 - both C and are possible right??

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s07_qp_3.pdf
q3 why D?? why nt B

 

[naheelnisar]

http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_s11_qp_32.pdf
question 7 pls help

 

[Qamar Baloch]

dear continue you maximum effort till tomorrow. I wish all of you very best of luck!
It was very nice to have a session with you all. I will continue the same work next year as well and this activity will continue for the whole year. You may let your friends and relatives know to join me. It was very short session and I have tries my best to facilitate as many people as was possible for an ordinary person. I will join you 12 at night. If you would not be available then kindly let me know by tomorrow how did you do in the exam. I wish you again a very best of luck! Allah Hafiz

 

[Qamar Baloch]

oct nov 05 question 22 pls help

its solution has already been provided. See a few gages back.

 

[AGEG]

Can someone please explain in summary keynes vs. monetarist?

 

[naheelnisar]

Can someone please explain in summary keynes vs. monetarist?

Keynesians believe that:
- Markets do not clear and are slow to adjust, eg. labour market. This means the economy can settle in equilibrium below full employment, so cyclical or involuntary unemployment exists.
- the Government should intervene to stabilise the economy
-fiscal policy is more effective than monetary policy
- inflation is often cause by cost push factors

Monetarists believe that:
- that inflations is due to the money supply growing faster than output growth. Reducing the rate of growth of the money supply will lead to less inflation without more unemployment (in the long run)
- prices and wages change quite quickly. so the economy tends to move towards full employment
- inflation makes firms incompetitive, discourages investment, and so governments must control inflation. To do this they must control the money supply. Apart from this, the government should intervene very little.
- Markets adjust fairly quickly. An increase in the money supply amd therefore demand will lead to some fall in unemployment in the short run. Similarly, a sharp reduction in the money supply may cause unemployment in the short run.

 

[Anusuya]

why isnt any one answering my ques.??

O/n 09 32 ques 9
M/j 07 q3

 

[queensunflower]

I have a doubt in question 4 and 7.

 

[naheelnisar]

pls any1 tell me total cost - marginal cost= average fixed costs ? :s

 

[Fazila]

Do they repeat any questions from the previos years ?

 

[memyself]

Do they repeat any questions from the previos years ?

sure they can

 

[queensunflower]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s11_qp_32.pdf
question 7 pls help

the price elasticity of demend is already given and it is 1.5. now if price rises by 10 percent as a result of tax being imposed ,we will need to find out what is the percentage decrease in demand. so u form an equation x/10=1.5. x will be equal to 15. thus sales will decrease by 15% from 1000 units to 850 units. the government revenue will therefore be $1 times 850 times 10%. the answer is 85 B.

 

[naheelnisar]

the price elasticity of demend is already given and it is 1.5. now if price rises by 10 percent as a result of tax being imposed ,we will need to find out what is the percentage decrease in demand. so u form an equation x/10=1.5. x will be equal to 15. thus sales will decrease by 15% from 1000 units to 850 units. the government revenue will therefore be $1 times 850 times 10%. the answer is 85 B.

tnx

 

[naheelnisar]

m/j 06 question 29..​

 

[patricia8686]

how to calculate m/j/08, no 23???

 

[Fazila]

In a closed economy with no government
the full employment level of income = $400 billion
and the equilibrium level of income = $380 billion.
If the deflationary gap is $4 billion, what is the marginal propensity to consume?
A- 1/5 or 1/4 or 3/4 and 4/5 ?
Answeris 4/5 ! Can some one tell me howwwwwwwww ?

 

[Qamar Baloch]

In a closed economy with no government
the full employment level of income = $400 billion
and the equilibrium level of income = $380 billion.
If the deflationary gap is $4 billion, what is the marginal propensity to consume?
A- 1/5 or 1/4 or 3/4 and 4/5 ?
Answeris 4/5 ! Can some one tell me howwwwwwwww ?

http://www.xtremepapers.com/communi...3/?temp_hash=e5ec819dc76fb49e18b93c090729ccda

 

[Fazila]

Thankyouu soo much sir