Economics, Accounting & Business: Post your doubts here!

[00mfr]

sorry i apologize i dint read the last option correctly, every1 definitely does not have an equal say.
sorry again
answer is C

 

[youzair]

The answer is C. i understood that the market makes quick decisions but why cant it be B. ?
View attachment 9057

Yeah the answer will be "C".
Why?
It is because one of the greatest advantage of free market over command is that they dont waste time and resources in conducting researches about the consumer need they respond through price mechanism as they want to maximise profit. The decision in market economy are quicker or else firm will be out of the market.

 

[youzair]

I'm not sure but I'd say it can't be B because a lot of the time market economies produce luxuries instead of essential goods. This is because people with higher incomes will be demanding these goods. So, even if people of lower incomes need a particular good to be produced their demand won't be registered by the market since it might not be effective demand.

And maybe something to do with merit goods? I'm not sure.

What I've written is a little confusing so you might not understand what I'm trying to say. Hope it helps you a little anyway.

And if I'm incorrect, please feel free to correct me.

Your description is also right but if you search in books that how COMMAND ECONOMIES answer the que WHAT TO PRODUCE so you will understand why the option C is correct. Planned Economic system makes rational decision for this they conduct lot of research that can fulfill the need of most of population so as research take times, decision making is quite delay in Planned Economics and in Free Market its opposite.

 

[student92]

The answer is C. i understood that the market makes quick decisions but why cant it be B. ?
View attachment 9057

in price mechanism, resources are allocated in accordance with price,
i think, i am not sure about this, but command economy chooses resources to be used to make good which fulfill needs of population, so option b is totally out as correct asnwer for me, and c is clearly the correct answer as it is one of the main advantage of market economy, they are fast to react to changing consumer wants, not needs,

 

[shanky631]

can anyone help me in economics mutiple choice.


this question is from 9708_w10_qp_11. And the correct answer is c

 

[shanky631]

One more question. This one is from May/june 2009 paper 1. The correct answer is C. Can anyone show me a detailed calculation as to how to derive the numerical value 3.

 

[Aarjit]

can anyone help me in economics mutiple choice.
View attachment 9062

this question is from 9708_w10_qp_11. And the correct answer is c

Country | X | Y |
rice | 9 : 1 |
wheat | 6 : 1 |

ideal trade (w.r.t wheat) = (9+6)/6 = 2.5 rice
Ans: C. 1 wheat = 2.5 rice

 

[shanky631]

hey thanks. i got it now. so u are also appearing for economics as level.

 

[youzair]

One more question. This one is from May/june 2009 paper 1. The correct answer is C. Can anyone show me a detailed calculation as to how to derive the numerical value 3.

View attachment 9063

Bro first see that demand is price inelastic at each price. Now find an equilibrium price before tax, means the price where Quantity demanded is equals to Quantity supplied i.e 340 and at $16. Now you have to find out what is the new equilibrium price as Supply curve shift to left due to imposition of tax and demand is inelastic so the quantity traded will remain 340, after tax it will be supplied at $19 per unit i.e price after imposition if tax so $19(new price including tax) - $16(price b4 tax)= $3 tax per unit

Illustrated by a graph:

 

[shanky631]

yes thanks bro. i understood the concept. really grateful for ur help

 

[youzair]

yes thanks bro. i understood the concept. really grateful for ur help

Any time bro

 

[shanky631]

Any time bro

hey friend, so are u appearing for as level economics this may??

 

[youzair]

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hey friend, so are u appearing for as level economics this may??

Yeah dude.... ​

 

[shanky631]

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Yeah dude.... ​

Okay nice. Best Of Luck

 

[youzair]

Okay nice. Best Of Luck

to u too bro

 

[mimiswift]

Ugh, I'm really starting to stress out about the economics exams now. I've had to self-teach the whole A Level in one year and I really don't think my preparation is good enough. I really need an A and it doesn't look like that will be happening now.

tell me about it
i had a really good teacher and am repeating AS and doing A2(hence full A level this may/june) and im so worried!
best of luck to you
and may the odds be ever in your favour<3

 

[mimiswift]

The answer is C. i understood that the market makes quick decisions but why cant it be B. ?
View attachment 9057

A. is wrong....take the case of imperfect markets such as monopolies where resources aren't allocated efficiently!
B. is wrong because in a market economy the look at notional and effective demand rather than need!
C is right as prices quickly signal to producers whhat should be produced!
D. is wrong as not everyone gets an equal say.....only those who have the willingness and ability to pay chooses what to be produced!

 

[mimiswift]

Can some help with my doubts! plzzz

 

[youzair]

Can some help with my doubts! plzzz

which one???

 

[Esme]

Yeah the answer will be "C".
Why?
It is because one of the greatest advantage of free market over command is that they dont waste time and resources in conducting researches about the consumer need they respond through price mechanism as they want to maximise profit. The decision in market economy are quicker or else firm will be out of the market.

Thank you.
Can you please eplain trade diversion ??