• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Economics, Accounting & Business: Post your doubts here!

Messages
553
Reaction score
1,080
Points
73
During a slump spending is more and taxes are less. (G>T) so if they increase tax in this situation, it will help the government maintain their budget. (Moving towards G=T)
Further, during a boom, spending is less and taxes are more. (G<T) so if the reduce tax in this situation, it will help balance. (Moving towards G = T) again.

Hence, answer = C
 
Messages
886
Reaction score
1,252
Points
153
upload_2014-4-11_15-4-26.png
whats the answer ???? the mark scheme says B and Examiners Report also says B but it also says this o_O
upload_2014-4-11_15-6-5.png
 
Messages
347
Reaction score
520
Points
73
View attachment 38786
whats the answer ???? the mark scheme says B and Examiners Report also says B but it also says this o_O
View attachment 38787
Answer is B.
This is because it's clear, isn't it? What happens during productive efficiency? The firm produces at minimum of Average cost. At point X, the firm is not productively efficient and therefore is producing before the cost-minimizing level of output.
 
Messages
347
Reaction score
520
Points
73
Any one has notes on expenditure switching and expenditure dampening policies?
I'll explain it here.
Expenditure dampening policy, as the name suggest are the ways in which the government cuts off its expenditures in order to reduce the aggregate demand in an economy. This can be done in the following ways:
1) Contractionary Fiscal policy: Includes taxes and government expenditure (Increases taxes and reduces government expenditure)
2) Contractionary Monetary policy: Money supply and interest rate (reduces money supply and increases interest rate)

Whereas in expenditure switching policy, the government tries to switch the consumer's expenditure from imports to locally manufactured products. For this to be successful, government must undertake capital good imports as to provide quality products.

http://www.s-cool.co.uk/a-level/eco...-does-a-government-reduce-a-current-account-d
 
Messages
1,328
Reaction score
3,317
Points
273
I'll explain it here.
Expenditure dampening policy, as the name suggest are the ways in which the government cuts off its expenditures in order to reduce the aggregate demand in an economy. This can be done in the following ways:
1) Contractionary Fiscal policy: Includes taxes and government expenditure (Increases taxes and reduces government expenditure)
2) Contractionary Monetary policy: Money supply and interest rate (reduces money supply and increases interest rate)

Whereas in expenditure switching policy, the government tries to switch the consumer's expenditure from imports to locally manufactured products. For this to be successful, government must undertake capital good imports as to provide quality products.

http://www.s-cool.co.uk/a-level/eco...-does-a-government-reduce-a-current-account-d

thanks :)
 
Messages
45
Reaction score
63
Points
8
hey how do we treat fixed overheads in process accounts when a work in progress arises, i mean do we allocate it over all units entering the process (normal activity) or just the completed units. urgent help needed on this!!!!!
 
Messages
45
Reaction score
63
Points
8
hey how do we treat fixed overheads in process accounts when a work in progress arises, i mean do we allocate it over all units entering the process (normal activity) or just the completed units. urgent help needed on this!!!!!
 
Messages
886
Reaction score
1,252
Points
153
hey how do we treat fixed overheads in process accounts when a work in progress arises, i mean do we allocate it over all units entering the process (normal activity) or just the completed units. urgent help needed on this!!!!!
we have to allocate only if fixed OH is given as per hour
we dont allocate if per unit
 
Top