Discuss doubts: P1 and P2 Economics AS

[rfuzzy]

what was the answer for question about tariff and quota

 

[Qamar Baloch]

I make it more clear 2 u. Aggassi.

 

[Devlol]

Shouldnt 3) be financial and income??
Also 2) There was an awnser that said "decrease in other countries interest rates" can it be correct? fall in interest rates mean more money will come into the country.

 

[Agassi Cazaubon]

Guys I just realised no point in querying things you already put on the exam.. it won't change anything focus on paper 2

 

[rfuzzy]

please tell me the answer for tariff and quota question .Thank You!

 

[Qamar Baloch]

So, u may use elimination method. Aggasi. If u take higher unemployment then it means resources are there but they not used. So, there will be a point inside the PPC and there will be no shift. An increase in price of energy will also lead to unemployment of some of the resources and again there will be no shift. And fall in innovation mean that innovation is there but its intensity has decreases. again there be no shift. Further more decrease in innovation may shift it to the left in future but not today if there is really a negative change in innovtion. Dear you must also keep in mind that production of agricultural and manufactured goods is physical demanding work due to which older workers will be less productive. I mean to say Retirement age is 100% confirm.

 

[rfuzzy]

Also how can it be financial account and current transfers?

 

[Agassi Cazaubon]

So, u may use elimination method. Aggasi. If u take higher unemployment then it means resources are there but they not used. So, there will be a point inside the PPC and there will be no shift. An increase in price of energy will also lead to unemployment of some of the resources and again there will be no shift. And fall in innovation mean that innovation is there but its intensity has decreases. again there be no shift. Further more decrease in innovation may shift it to the left in future but not today if there is really a negative change in innovtion. Dear you must also keep in mind that production of agricultural and manufactured goods is physical demanding work due to which older workers will be less productive. I mean to say Retirement age is 100% confirm.

confirmed by who ?
lol.. haven't you ever heard of automation? anyway my friend you are wrong
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s08_qp_1.pdf

look at question 1 in this past paper

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s08_ms_1.pdf

look at the answer C not B.. it is not an increase in retirement age..

 

[Qamar Baloch]

Its for you rfuzzy: tariff increases government revenue and it benefits the sellers of imports because tariff is a source of government income and due to qouta there will less quantity of imported goods available in the country so importers can easily exploit the people by charging high prices as demand would be higher than the supply.

 

[Qamar Baloch]

rfuzzy its for you: Borrowing and long term investment are recorded in capital account. While financial account mainly consists of figures of capital account. On the other hand interest paid on loans is recorded in income flows.

 

[Devlol]

http://faculty.washington.edu/danby/bls324/macro/categories.html

says interest payments is on income account?

 

[Qamar Baloch]

Aggasi its for you.
1-C Increase in net emigration means more people are leaving the country. It reduces human resource in the country. Fall in resources shift the PPC towards left. It clear cut shifts the PPC to the left. And this is better option than the retirement age in this question. It reduces the workforce. In the recent question productivity of workforce is decreasing.

 

[Agassi Cazaubon]

Okay Qamar thanks for the help I won't ask anything about the multiple choice anymore as there is no use I will focus on p2 because what's done is done in the multiple choice

 

[Qamar Baloch]

Ok dear Good luck.

 

[Qamar Baloch]

Guess Paper for AS level Economics Paper-2
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Note: The word Guess means something predicted based on experience. So, all the students are advised to keep this point in their mind before going to prepare for the exams. Examiner might not use the same statements, however the material covered in these questions is expected to be asked by the examiner in the examination June 2011.
For Solution to these questions and important data responses contact at 03217555550.
V.V.V.V.Important questions (1 and 3)

Q.1 (a) Discuss whether it is the behavior of producers, consumers or governments that is most likely to cause inflation. [8-12]
(b) Discuss the methods and problems involved in constructing an accurate measure of the rate of inflation. [8-12]
c) Discuss whether inflation is necessarily harmful? [12]
Q. 2(a) Explain the differences in the features of a market economy and a
planned economy. [8]
(b) Explain the link between the basic economic problem of scarcity and opportunity cost. [8]
(c) Discuss whether increased division of labour among workers and nations brings only benefits. [12]
Q.3 (a) Explain, with examples, the significance of the value of a good’s cross-elasticity of demand in relation to its substitutes and complements. [8]
(b) Discuss whether a firm’s revenue would increase, in response to price and income changes, if the price elasticity and income elasticity of demand for its product became highly elastic. [12]
(c) Explain the meaning of the ‘equilibrium price’ of a good and how it is set in a free market. [8]
(d) Explain what influences the price elasticity of supply of a product? [8]
Q.4 (a) explain with the aid of a diagram, how consumer surplus will be affected by the introduction of an indirect tax. [8]
(b) Discuss the advantages and disadvantages of using indirect taxes to deal with the negative externalities associated with some products. [12]
(c) Explain the meaning of ‘public good’ and ‘private good’. [8]
Q.5(a) Explain how a country’s balance of payments is organized to account for all its international transactions. [8]
(b) Explain how the determination of a floating exchange rate differs from that of a fixed exchange rate. [8]
(c) Discuss the circumstances in which reducing the exchange rate and introducing quotas are effective policies to tackle a trade deficit. [12]

 

[Qamar Baloch]

Hi dear students of A level Economics. I hope you have prepared your paper-2. So, if you want to discuss any doubts regarding the paper then you may clear your concepts in discussion with me.

 

[fatima 007]

Should i practice macro or micro for data response?

 

[Qamar Baloch]

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[Qamar Baloch]

fatima check your email. I hv sent you everything you need to revise.

 

[ibadsiddiqi]

Its for you rfuzzy: tariff increases government revenue and it benefits the sellers of imports because tariff is a source of government income and due to qouta there will less quantity of imported goods available in the country so importers can easily exploit the people by charging high prices as demand would be higher than the supply.

But what if the demand for the imported goods is price elastic?..Then it would not benefit the importer because at higher prices the quantity demanded will decrease by a greater extent?