Economics, Accounting & Business: Post your doubts here!

[sharfa riyaz]

SORRY BUT I FIGURED IT OUT!

 

[2pac]

SORRY BUT I FIGURED IT OUT!

mind explaining how u got it?

 

[Saiyan]

Saiyan bro,could you help me with q19 and q22 of May 2005.Sorry no link for the questions.

19. Observe that the savings curve is lying below the origin. This implies dissaving. So when it gets skewed backwards it means that dissavings has decreased and so savings increase. Ans-B

22. Just remember MV=PT=NI which means that if one of the components increase without increasing or decreasing other component then it will also increase national income by same proportion. Ans-A

 

[2pac]

19. Observe that the savings curve is lying below the origin. This implies dissaving. So when it gets skewed backwards it means that dissavings has decreased and so savings increase. Ans-B

22. Just remember MV=PT=NI which means that if one of the components increase without increasing or decreasing other component then it will also increase national income by same proportion. Ans-A

thanks a lot mate,have loads of other questions as well.You don;t mind if i ask u them right?

 

[Echelon94]

i m very bad in eco p3 , hope will get answers here, pls do bear my stupid questiosn, my first mcq, got tonnes of those:
paper: http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s04_qp_3.pdf
question 14, C is the answer but how?

well as a general rule, Monopolists always charge higher prices & produce lower outputs compared to Perfect Competition....
Marginal Cost Pricing means keeping P=MC (property of a Perfect Competition), & incase of Perfect Competition P=AR=MR, so now the AR curve will change & become a horizontal straight line...
P.S.: as far as I have seen, you are good in all the subjects man....

 

[Saiyan]

i m very bad in eco p3 , hope will get answers here, pls do bear my stupid questiosn, my first mcq, got tonnes of those:

paper: http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s04_qp_3.pdf

question 14, C is the answer but how?

Good to see you wajiman. Brother this not an easy question so don't feel ashamed and degrade yourself. If the firm is adopting marginal cost pricing it means it is operating at an allocative efficient level as all kind of cost including normal profit is included in the price so consumers are better off without worsening others. Note that external cost are also included there so resource allocation is improved as monopolist charge at MC=MR.

 

[MnMz]

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w03_qp_3.pdf

Q 22.

 

[sharfa riyaz]

mind explaining how u got it?

you use the PED formula! n get the % change in quantity demanded! then u adjust 1ooo with the change in the quantity demanded! n multiply it by 0.1!! hope u understood!

 

[2pac]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w03_qp_3.pdf

Q 22.

add all of the leakages,it comes up to 0.5.|Multiplier formula is 1/mps so in this case since it will be 1/0.5 which is 2

 

[youzair]

mind explaining how u got it?

If u tawkin about June11 32 Q#7 so here it's explanation!

Qty was 1000 with PED of 1.5, so 10% increase in P cause 15% fall in Q, so new Q will be 1000*85%=850 or 1000*15%=150, 1000-150=850, price is $1. Now apply 10% on new Q to know the TAX revenue i.e 85!
or New qty is 850 and tax per unit is $0.1 so the tax rev will be 85

 

[memyself]

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q19 anyone?

 

[youzair]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q19 anyone?

NY=C=30+.7(300)
300=240+S
S=60
the amount which is saved is not in circulation its a leakage so an Investment of 60 will equate the quilibrium level of income!

 

[2pac]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q19 anyone?

ok this will be kind of vague for you but Ill hope youll get it.
Remember that C=I+Y where i is investement and y is income and c is consumption.
given that C=30+0.7Y and that Y is 300.
so 0.7x300 is 210,add that with 30 and ull get 240.
Now to find investemnt subtract 240 from 300 and youll get 60.

 

[memyself]

ok this will be kind of vague for you but Ill hope youll get it.
Remember that C=I+Y where i is investement and y is income and c is consumption.
given that C=30+0.7Y and that Y is 300.
so 0.7x300 is 210,add that with 30 and ull get 240.
Now to find investemnt subtract 240 from 300 and youll get 60.

NY=C=30+.7(300)
300=240+S
S=60
the amount which is saved is not in circulation its a leakage so an Investment of 60 will equate the quilibrium level of income!

Yes gotcha. Thank you, u two!

 

[memyself]

A closed economy is in equilibrium with national income 100m and capital stock 25m. AD increases by 10m. according to accelerator theory, by how much will net investment increase?

A. 10m
B. 5m
C. 2.5m
D. 2m


What accelerator formulae to use?

 

[memyself]

^^^ the ans is 2.5m

 

[Saiyan]

Guys now I have a shoulder ache. I can't help you all anymore.

 

[memyself]

Guys now I have a shoulder ache. I can't help you all anymore.

Get well soon

 

[youzair]

Saiyan, 2pac, memyself, Echelon94
wajiman MnMz
guys can u explain these que to me?
November 2002
Question# 16

Question# 21

Question# 29


answers are C, C andB-respectively!

 

[MnMz]

youzair: 1st question is easy:
Well they said that expenditure increased that means the curve will shift upwards to E1, But then they said that the tax rate also increased...so this income to the government so the curve will MOVE downwards to E3. =)