Economics, Accounting & Business: Post your doubts here!

[David Hussey]

hi guys i have some doubts in this paper
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_w08_qp_3.pdf
q2,3,13,17,19,20,22,23,24,25,27,28
ill really appreciate it if can atleast explain one question
m screwed in econ

 

[AlphaBeta]

hi guys i have some doubts in this paper
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w08_qp_3.pdf
q2,3,13,17,19,20,22,23,24,25,27,28
ill really appreciate it if can atleast explain one question
m screwed in econ

question 2 -pareto efficiency means making some1 better off, while making something else worse off
question 3 - i ncrease in REAL income shifs the budget curve outwards
q 13 - am not so sure but i read da redspot answer ..... better ask dat seperately
q 17-increased spending increases AD while decrease in wage rates reduce costs hence fallin AS
q 19 - sale of security ppl will buy from their income hence MS falls and IR and security inverse relationship
q 20- mo credi shifs MS right ,less holdin money will mean less LP demand
q22,23,24,27 - easy ... read da notes
q 28 quota means limit ...so higher valued stuff means higher revenue

 

[David Hussey]

u have the redspot book for econ?
q-17 if u apply what u said the answer should be C, but ms says its A
do u have any notes for q-19 i need help in this area
what notes are you talking about?

 

[AlphaBeta]

u have the redspot book for econ?
q-17 if u apply what u said the answer should be C, but ms says its A
do u have any notes for q-19 i need help in this area
what notes are you talking about?

q 17no dude increase in supply means shifting right so it is A

 

[AlphaBeta]

u have the redspot book for econ?
q-17 if u apply what u said the answer should be C, but ms says its A
do u have any notes for q-19 i need help in this area
what notes are you talking about?

even i need to check notes ....google and notes appear datz hw i get notes

 

[David Hussey]

q 17no dude increase in supply means shifting right so it is A

increase in supply??? it says decrease in wage rates which means it should shift to the left right?

 

[:: A^]

increase in supply??? it says decrease in wage rates which means it should shift to the left right?

decrease in wage rates - reduction in production costs - increase supply - shift to the right =D

 

[David Hussey]

decrease in wage rates - reduction in production costs - increase supply - shift to the right =D

ohh yeaa,,,thnx bro!
could try the questions which alphhabeta didnt answer?

 

[David Hussey]

could you*

 

[AlphaBeta]

how to get D

 

[:: A^]

how to get D
View attachment 37506

Price inelastic? Changes in price will not have a huge effect on imports?

 

[AlphaBeta]

Price inelastic? Changes in price will not have a huge effect on imports?

its charging market clearing price

 

[AlphaBeta]

how to get B ?

 

[AlphaBeta]

how to get B

 

[:: A^]

its charging market clearing price

yea but we have to assume that once the quota is used up, prices increase. otherwise no other way to get!

 

[David Hussey]

how to get D
View attachment 37506

balance of trade will worsen cos price will be higher because there is only a few goods and even higher because its inelastic
temrs of trade will worsen i GUESS because of the martial learners condition

 

[TheZodiac]

how to get B ?

MPC of unemployed is higher, let say 0.7.
MPC of tax payers is lower than that of unemployed, let say 0.5

Government is increasing the expenditure on unemployment benefits by $10 million, this means that now, the unemployed individuals would have more money to consume. However, at the same time, taxation should rise by greater amount than $10 million if government wants to keep the A.E unchanged. Because suppose that first, the taxpayers were paying 0.2 of their income as taxes (MPT = o.2) Now, if the taxes are increased by greater proportion, the MPC of taxpayers would fall, means that they would now consume less. The fall in consumption of the tax payers should be equal to an increase in consumption by unemployed individuals. However, the MPC of both are different and therefore the taxes should be increased by MORE than $10 million if the A.E is to be kept constant.

 

[AlphaBeta]

MPC of unemployed is higher, let say 0.7.
MPC of tax payers is lower than that of unemployed, let say 0.5

Government is increasing the expenditure on unemployment benefits by $10 million, this means that now, the unemployed individuals would have more money to consume. However, at the same time, taxation should rise by greater amount than $10 million if government wants to keep the A.E unchanged. Because suppose that first, the taxpayers were paying 0.2 of their income as taxes (MPT = o.2) Now, if the taxes are increased by greater proportion, the MPC of taxpayers would fall, means that they would now consume less. The fall in consumption of the tax payers should be equal to an increase in consumption by unemployed individuals. However, the MPC of both are different and therefore the taxes should be increased by MORE than $10 million if the A.E is to be kept constant.

jazakallah got it

 

[Sarah Paul]

How does depreciatiomn lead to a deflationary problem?

 

[Sarah Paul]

Im facing a huge problem can anyone help me pls
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_s07_qp_2.pdf
Can ull give me the answer of B where the break even point shud be calculated in dollars
My answer is correct for household but not for Buisiness and factory