Economics, Accounting & Business: Post your doubts here!

[Mad Gal]

i have a problem in M/J 2002 P1 economics
http://www.xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_s02_qp_1.pdf
Qns 13- no idea how the answer is B? pls explain?
Qns 29- i get that since price of oil increases and its demand is inelastic then demand pull inflation's effect will reduce as people will have less money to spend on other goods.....but what i dont get is how cost push inflation's effect increases....how is it even related?
Qns 30- why D?

Thanks for the Hat question i got it!
the 13th question, well it seems alil confusing. I'd have marked B using the elimination method Am not sure if my explanation's gonna help you much, buh i'll try
using the elimination method you can rule out option A C n D. It doesn't really give a proper shape. I know am getting lame. Buh sometimes elimination method can be useful. Market clearing price would normally be the equlibrium price, buh we are not given any here clearly, so i'd end up choosing opt B.
Sorry for the lameness

 

[Mad Gal]

yup! u were 100% clear, thank u very much I appreciate that

welcome very much

 

[Mohammed Hassan]

welcome very much

I know that I'm may be annoying u
I have problem in this question too :S
the answer is A...

 

[parthrocks]

T

I know that I'm may be annoying u
I have problem in this question too :S
the answer is A...

The answer should be A

 

[Mad Gal]

View attachment 9378View attachment 9379View attachment 9380View attachment 9381View attachment 9382View attachment 9377 hEY CAN SOMEBODY PLZZZZ CLEAR OUT MY DOUBTS....GOD BLESS U...SPECIALLY MAD GAL AND YOUZAIRE IF U CAN...PLZZZZZ

Que 29 is it D?
Que 18 is it B?
Que 19 is it B?
Que 23 is it B?
Que 28 is it C? (this was already discussed here i guess?)
Que 13 is it B?

Do not post too many questions like this.

 

[Mohammed Hassan]

T
The answer should be A

yeah, but how u got that?

 

[Mad Gal]

I know that I'm may be annoying u
I have problem in this question too :S
the answer is A...

You have to compare cost and NRV.
So item 1 cost = 2160 and NRV = 2260.
Item 2 cost = 3190 and NRV = 2740.
IAS standard says, you record stocks based on cost or NRV whichever is lower. So Item 1 cost is lower and item2 NRV is lower. Add the 2 and you get 4900.

 

[Mad Gal]

@Pathrock
Let me know if the answers i gave are right, i can explain then how i got them

 

[Mohammed Hassan]

You have to compare cost and NRV.
So item 1 cost = 2160 and NRV = 2260.
Item 2 cost = 3190 and NRV = 2740.
IAS standard says, you record costs based on cost or NRV whichever is lower. So Item 1 cost is lower and item2 NRV is lower. Add the 2 and you get 4900.

Understood Thnx appreciate that

 

[parthrocks]

Que 29 is it D?
Que 18 is it B?
Que 19 is it B?
Que 23 is it B?
Que 28 is it C? (this was already discussed here i guess?)
Que 13 is it B?

Do not post too many questions like this.

Question no 29 its D----how did u get it...reason....why cant it be A
Question 18 the answer is A--------
Question no 19 its B......
Question no 23 its C.....
Question no 28 its C ya.....i didnt understand can u explain me.....
Question no 13 its B---didnt get it.....

Please reply asap....thankssss

 

[parthrocks]

sorrry i couldnt answer as was busy checking the answers...soryyy.....bt this is the method...

 

[Mad Gal]

sorrry i couldnt answer as was busy checking the answers...soryyy.....bt this is the method...

well 18 i dont know!

23 C coz labour force = unemployed + emp. So unemp rate = 5/50 *100
and participation rate is, out of the entire population, how many are employed. so its 45/100 * 100 okay?

Que 29 - Pound has depreciated right. You get that?? B4 it was = to 1.5 dollar and now its only = to 1 dollar. So yea.

Que 19..lol you need to do the working here.. :/ Find the opportunity costs for Country 1 of producing X n then Y. so you should get 0.42.. and 2.3 respectively.
Do the same for Country 2 and you should get X - 0.5 and Y 2.
So this shows, Country 1 is better off in making X and Country2 in making Y.
(basically you compare the opportu.cost for one product between the 2 countries, and thats how you get that). Now answers A C D can be eliminated. Hope you got it :/

Que 13, Price and qty both rose. which means a shift should've occured. So for price to rise Supply should shift to the left or demand to the right. However, in this case both price and Qty needs to rise. So only a rightward shift by Demand will make it happen. So given all the options, only option B will result with that.

Got it??? and the 28th, i find that really annoying and i'd mess your brain if i explained it. Sorry!!!

 

[Mad Gal]

I have some doubts in
http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w07_qp_1.pdf Que - 20 am confused with B n C. The answer is C and
Que 25 - dont get it! i marked A. Ans is B

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s07_qp_1.pdf
Que 12 Explain please! The answer is D
24 Explain please! The answer is D
25 - why does the balance of trade worsen?? Explain please?! The ans is A.
Please! RASAP

 

[parthrocks]

than

well 18 i dont know!

23 C coz labour force = unemployed + emp. So unemp rate = 5/50 *100
and participation rate is, out of the entire population, how many are employed. so its 45/100 * 100 okay?

Que 29 - Pound has depreciated right. You get that?? B4 it was = to 1.5 dollar and now its only = to 1 dollar. So yea.

Que 19..lol you need to do the working here.. :/ Find the opportunity costs for Country 1 of producing X n then Y. so you should get 0.42.. and 2.3 respectively.
Do the same for Country 2 and you should get X - 0.5 and Y 2.
So this shows, Country 1 is better off in making X and Country2 in making Y.
(basically you compare the opportu.cost for one product between the 2 countries, and thats how you get that). Now answers A C D can be eliminated. Hope you got it :/

Que 13, Price and qty both rose. which means a shift should've occured. So for price to rise Supply should shift to the left or demand to the right. However, in this case both price and Qty needs to rise. So only a rightward shift by Demand will make it happen. So given all the options, only option B will result with that.

Got it??? and the 28th, i find that really annoying and i'd mess your brain if i explained it. Sorry!!!

ks a lot once again and so prepared for the mcq paper...or stilll doing??

 

[mimiswift]

Thanks for the Hat question i got it!
the 13th question, well it seems alil confusing. I'd have marked B using the elimination method Am not sure if my explanation's gonna help you much, buh i'll try
using the elimination method you can rule out option A C n D. It doesn't really give a proper shape. I know am getting lame. Buh sometimes elimination method can be useful. Market clearing price would normally be the equlibrium price, buh we are not given any here clearly, so i'd end up choosing opt B.
Sorry for the lameness

your welcome
i use elimination method alot too!
they are asking the cost of this scheme to the gov so the amount of subsidy times the quantity they will buy so shouldn't it be C!

 

[mimiswift]

q29 cost push inflation because oil is used in almost all industries. it is used for transport n for generating energy . also as the demand is inelastic oil will be purchased at higher prices and the firm's costs will increase. its imported cost push inflation.
q30- first of all demand for exports increase causing demand pull inflation. imports become expensive which increases raw material costs ( those that are imported) leading to cost push inflation.

sorry i dunno q13 myself.

Thanks alot i get 29 and 30 now!

 

[mimiswift]

Okay let me give u an example. Suppose if a goods price is 400 rupees and the exchange rate is 1 dollar = 40 rupees. That means its value in terms of dollars is 10 but now if dollar has appreciated and now 1 dollar=50 rupees. The value of good in terms of dollars would become 8. So hasn't the value in terms of dollars decreased. I hope it helps u to understand the concept.

Thanks alot!
finally i understood this!
I just hope i can think this way in exams too!

 

[shanky631]

Thanks alot!
finally i understood this!
I just hope i can think this way in exams too!

just think of examples in solving this type of questions.

 

[shahz_h]

Could any1 solve my following doubts?
http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_s10_qp_11.pdf
Q.8 Ans. is A
Q.12 Ans. is C
Q. 19 Ans. is D
Q. 24 Ans. is B
Q. 29 Ans. is D
Please Explain!!ASAP!!
Thanx in Advance!!

 

[Esme]

Could any1 solve my following doubts?
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s10_qp_11.pdf
Q.8 Ans. is A
Q.12 Ans. is C
Q. 19 Ans. is D
Q. 24 Ans. is B
Q. 29 Ans. is D
Please Explain!!ASAP!!
Thanx in Advance!!

q8- when the demand is unitary so the expenditure on thaat good is always the same. no matter what the price. so the ans is A, which shows that expenditure on that good remains constant at al prices.
q12- At the price of three the additional units purchased are (2000-1000)=1000. so the increase in consumer surplus is 1000 x 3= 3000.
q19- trade will not take place because the PPCs are paraell for both the countries indicating that their opportunity cost ratos are the same. when the opp cost ratios ae same trade does not take place because both countries cannot benefit from trade at the sme time.