- Messages
- 166
- Reaction score
- 72
- Points
- 38
qns 29. STERLING has depreciated against dollar so dollar against sterling appreciated!
this means US imports from Uk will become cheaper and UK imports from US will be expensive so option B and C are cancelled out! i don't think A is applicable i feel check the defination in google!
and D is right since dollar appreciated aginst sterling so $ became more expensive in terms of pound!
qns 18-its A because since demand is unitary farmers income won't be affected with increase or fall in supply
qns 19- u have to calculate opportunity cost
for country 1- 1X=0.43Y 1Y=2.33X
for country 2- 1X=0.5Y 1Y=2X
so country 1 has comparative advantage in X and country 2 in Y!
now look at the options :- option A out
C is not right either as they have comparative advantage in Y and D is wrong too!
B is right as country 1 has absolute adv in production of Y (they can produce more Y than country 2) and comparative adv in X!
qns 23- unemployment rate= total unemployed/total labour force(unemployed+employed) * 100
so unemployment rate is 5/(45+5)*100=10% therefore option A and D eliminated!
participation rate is total labour force/total adult population*100 so answer is 50/100*100=50% so your answer is B
qns 28-as Yen depreciates against dollar value of imports in Yen becomes expensive so it increases and as for value measured in dollar:
(this is not my explanation but shanky631 coz i dont want to take credit for others work......i had the same doubt btw)
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.
hope you understand!
qns 13- use elimination method here!
option : A-an increase in price of complement will lead to fall in quantity traded so A is wrong!
B- an increase in price of substitute will mean their demand can fall and our rise! maybe the price increase of 10 cents was much lower than the substitute so this is a more likely correct option!
C- imposition of tax means supply will reduce so quantity traded falls too!
there you go!
hope you understand!
D-if you draw the diagram the imposition of minimum price will lead to fall in quantity demanded and rise in supply so it's unlikely that this is right!
