Economics, Accounting & Business: Post your doubts here!

[mimiswift]

Thank you.
Can you please eplain trade diversion ??

when countries join trading blocs......internal tariffs are removed!......so a firm that previously imported raw materials from like Country V at say 10% tariff will now import from country X as it will become cheaper for them......thus trade from outside is diverted from trade within the trading bloc!
hope this helps

 

[youzair]

i have doubts in Economics A2-P3
O/N'07- qns 10,2027,29
QP-http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w07_qp_3.pdf
MS-http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w07_ms_3.pdf

p31 O/N '11-2,3,9,24,29 & 30
QP-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_31.pdf
MS-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_ms_31.pdf

p3 O/N '08-25 What would increase an economy’s actual output but not its potential output?
A an increase in the capital available to the labour force
B an increase in the labour force’s skill level
C an increase in the number in the labour force
D an increase in the proportion of the labour force employed

ANSWER IS "D"

P31-O/N'09- 5,6,8,9,10,13,18,21,24,26,27 & 29
QP-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w09_qp_31.pdf
MS-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w09_ms_31.pdf

P31 O/N 2010- 20,27,28 & 30
QP-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w10_qp_31.pdf
MS-http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w10_ms_31.pdf

P3 O/N 2006- 4,16,18,21 & 23
QP-http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w06_qp_3.pdf
MS-http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w06_ms_3.pdf

PLEASE HELP ME OUT!!!

Sister i will surely help you in this paper but after giving my As levels paper a2 eco paper is on 15june so we have time to discuss threads later ryt now em much tensed about AS...
Sorry for not answering ur queries

 

[Esme]

Guys listen the commodity here is RICE its an agricluture product and is necessity so govert usually subsidise such gooods because to make it available to large numb of consumers govt usually never put high or no taxes its an assumption state generate revenue from luxuries category good

hmmmm...... alright.

 

[mimiswift]

Sister i will surely help you in this paper but after giving my As levels paper a2 eco paper is on 15june so we have time to discuss threads later ryt now em much tensed about AS...
Sorry for not answering ur queries

It's Ok.....Im tensed aswell for my AS paper!
It's fine take your time!
and best of luck aswell

 

[Esme]

anyone has the examiner's report for oct/nov 2011 ?? please share.

 

[Esme]

Please xplain why the ans is A n not D ?

 

[youzair]

Please xplain why the ans is A n not D ?View attachment 9156

As per my knowledge bridges are public goods, not pure piblic good. So private firm will build and operted and charge for it so it will now be private good no more public good. Consumers surpluse relates to consimer willingness that what is the maximum he can pay...but conumer might use other routes or for public good free rider problem exist if it starts to charge for the bridge net benifits to society like to decline...
Tell me the year and session

 

[student92]

anyone has the examiner's report for oct/nov 2011 ?? please share.

the question clearly states, private company would charge the public to use the bridge, so the public would have to pay, before it can benefit from the new bridge, that is, they can be easily excluded,
imagine it like a toll booth, only who pay can use the road,
rest b and c dont make sense, so must be a , although i am not sure why consumer surplus cannot be obtained, maybe the government set the price
hope this helps

 

[student92]

As per my knowledge bridges are public goods, not pure piblic good. So private firm will build and operted and charge for it so it will now be private good no more public good. Consumers surpluse relates to consimer willingness that what is the maximum he can pay...but conumer might use other routes or for public good free rider problem exist if it starts to charge for the bridge net benifits to society like to decline...
Tell me the year and session

http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_w11_qp_12.pdf

 

[student92]

6 It was estimated in 2010 that milk had an income elasticity of demand of –0.6.
What can be concluded about milk from this information?
A It accounts for only a small proportion of household expenditure.
B It has very few substitutes.
C Household expenditure on milk will decrease if the price of milk increases.
D It is an inferior good.
why is d the correc asnwer, why not a

 

[Mad Gal]

6 It was estimated in 2010 that milk had an income elasticity of demand of –0.6.
What can be concluded about milk from this information?
A It accounts for only a small proportion of household expenditure.
B It has very few substitutes.
C Household expenditure on milk will decrease if the price of milk increases.
D It is an inferior good.
why is d the correc asnwer, why not a

Hi,
The question talks about income elasticity of demand and NOT PED. Option A talks about PED. And as you know according to YED a negative result would mean that its an inferior good. Hence, the answer should be D.

 

[Mad Gal]

Hi,
i have a doubt in the following paper, question no : 4. The answer is B buh am getting D. Can someone please help me out???
http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s05_qp_1.pdf

 

[Mad Gal]

A company has revalued its fixed assets upwards during the most recent accounting period.
What will be the effect of this?
A. to increase capital employed and increase profits
B. " " " " " reduce profits.
C. to reduce capital employed and reduce profits.
D.to reduce capital employed and no effect on profits.

Well, i thought the answer was either A or B buh the correct one is B. Someone help me out? Please!!!

 

[shanky631]

Hi,
i have a doubt in the following paper, question no : 4. The answer is B buh am getting D. Can someone please help me out???
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s05_qp_1.pdf

hey, Net debtors at 31 march 2003 were 17100 so first divide it by 0.95 to get the original debtors amount (18000) at 31 march 2003.
Then u subtract 17100 from 18000 to get ur provision for doubtful debts at 31 march 2003. (900)

then we ignore the bad debt effect because we have got the balance of sales ledger control account which includes it. So we calculate 5% of 19000 which is
950. so the increase in provision (expense) is 950-900 =50

 

[Mad Gal]

hey, Net debtors at 31 march 2003 were 17100 so first divide it by 0.95 to get the original debtors amount (18000) at 31 march 2003.
Then u subtract 17100 from 18000 to get ur provision for doubtful debts at 31 march 2003. (900)

then we ignore the bad debt effect because we have got the balance of sales ledger control account which includes it. So we calculate 5% of 19000 which is
950. so the increase in provision (expense) is 950-900 =50

Thank you so much!

 

[shanky631]

Thank you so much!

Mention not friend, glad to help

 

[Mad Gal]

25 A non-interest bearing asset is index-linked.
During a period of inflation, how will its money value and its real value change?
money value real value
A rises rises
B rises stays constant
C stays constant falls
D stays constant stays constant

the answer is B. I sort of get the concept there, buh could someone explain it for me??

PLEASE!

 

[Echelon94]

Can anyone explain why the ans to this question is C?View attachment 4166

There is no opening stock, which means that the Selling Price of the goods Purchased will be $500,000+$50,000. Their cost is $450,000. This means Cost/Selling Price=450000/550000. The COST of Closing stock will hence be $50,000 x (450/550) = $40,909.
Therefore Gross Profit = $500,000 - ($450,000-$40,909) = $90,909

 

[Esme]

25 A non-interest bearing asset is index-linked.
During a period of inflation, how will its money value and its real value change?
money value real value
A rises rises
B rises stays constant
C stays constant falls
D stays constant stays constant

the answer is B. I sort of get the concept there, buh could someone explain it for me??

PLEASE!

when it is index linked it means that the price of the asset or the money value rises in line witht the rate of inflation. therfore the money value risrs.now as you knw real value is the value after inflation hs been deducted from the money value . hence the REAL value remains the same. hope i helped .

 

[Esme]

6 It was estimated in 2010 that milk had an income elasticity of demand of –0.6.
What can be concluded about milk from this information?
A It accounts for only a small proportion of household expenditure.
B It has very few substitutes.
C Household expenditure on milk will decrease if the price of milk increases.
D It is an inferior good.
why is d the correc asnwer, why not a

Hi,
The question talks about income elasticity of demand and NOT PED. Option A talks about PED. And as you know according to YED a negative result would mean that its an inferior good. Hence, the answer should be D.

thats rght. they'r referring to YED not PED.