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A2 ECONOMICS: Guess Paper-4

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queensunflower

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AGEG

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naheelnisar said:
i dunt get this may not be economically efficient wala part in the option D:s
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economically efficient means both productively and allocatively efficient, since the point is on the ppc it must be productively efficient but is not necessarily allocatively efficient, therefore the point is not necessarily economically efficient. :)
 
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AGEG

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queensunflower said:
the new income is 120. so we try to use all the options given to find out the new prices. when u use option B u will get for product x 6 times 20 which is 120 and for product y 10 times 12 which is 120. if u try other options, u wont get 120. therefore B is the answer.
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Thank you! :)

Jazak Allah khair.
 
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naheelnisar

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AGEG said:
economically efficient means both productively and allocatively efficient, since the point is on the ppc it must be productively efficient but is not necessarily allocatively efficient, therefore the point is not necessarily economically efficient. :)
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oooooooooh thankyou sooo much :)
 
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naheelnisar

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queensunflower said:
the new income is 120. so we try to use all the options given to find out the new prices. when u use option B u will get for product x 6 times 20 which is 120 and for product y 10 times 12 which is 120. if u try other options, u wont get 120. therefore B is the answer.
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i still dont get this one
 
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naheelnisar

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queensunflower said:
government macroeconomics aims include low level of unemployment, economic growth and low rate of inflation. 1980 to 1990 was the only period that the government was able to achieve all these aims. therefore D is the answer.
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oh okay nw i get it.. thankyou :)
 
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queensunflower

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naheelnisar said:
i still dont get this one
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See at point S, the consumer will purcahse zero units of Y and 20 units of X. this means that the consumer will spend his whole 120 income on X. thus to find the price of good X, it will be 120 divide by 20 which is 6. now at point R, consumer will purhase zero units of X and 12 units of Y. therefore at this point, consumer will spend all his 120 income on Y. so to find the price of Y, it will be 120 divide by 12 which is 10.
 
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Bint

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naheelnisar said:
i still dont get this one
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Ok so listen you pay 120 to get 20 units of product X so how much wud the price of this probuct will be? so to know the price of product x you divide 120 by 20 120/20 = 6 which equals to 6 and then you do the same for the product Y to get the new price
 
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