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Economics, Accounting & Business: Post your doubts here!

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D says that now US doesn't need to M goods from UK so doesn't need £ any more so demand for £ will fall.
You misinterpret the graph.
ok i get D!
the graph shows a depreciation of £ against $ so UK imports from US will be expensive so increase in price !isn't it?
 
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ok i get D!
the graph shows a depreciation of £ against $ so UK imports from US will be expensive so increase in price !isn't it?
No no u taking it wrong..
B states that US has increase the prices of good, here it doesnt mean realtive M price has risen. It says INCREASE IN THE PRICE OF GOODS but here US doesnt touch its prices rather they are relatively EXPENSIVE in UK markets...
 
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No no u taking it wrong..
B states that US has increase the prices of good, here it doesnt mean realtive M price has risen. It says INCREASE IN THE PRICE OF GOODS but here US doesnt touch its prices rather they are relatively EXPENSIVE in UK markets...
ohhh!
so tricky!
=.= im gonna fail this way
anyways thanks alot for yer help!:)
 
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Dude see increase in international competition means prices must be declining as the benefit of competition is lower prices...
here que states tha current a/c is worsening it worsens coz M are > than X this means imported goods are relatively cheaper...
when u M more you pay trading country in their currency so u will exchange your curr with international one..
your supply for curr will rise means right ward supply shift and means currency has depreciated.
now look at the table..
when you demand for M than X so domestic producer face a fall in demand causing leftward shift and price or we can say domestic inf will fall in domestic market..
so you can see ER and INF both has faced a decrease....


=> simple mathematical calc needed here... TOT=(Avg X prices/Avg M prices) x 100, here TOT and Avg M prices are given. so we need to calculate Avg X prices hea. put the figures u know.... 120=(Avg X price/125) x 100 and now make Avg X prices a subj = (125 x 120)/100 = 150 i.e Avg X prices have risen up by +50%
Note: we take BASE year as 100 in TOT so 25% increase in M means 100 + 25.

=> i am weak in BOP calc...

=> remember currency APPRECIATES when X increases or M decreases..
whenever someone invest in another country it invest not in his domestic currency but in the currency where he is investing... a large capital inflow into the UK means Investment people will demand our currency in forex so D for our currency rises.

=> apply J-Curve(Marshall-Lerner Condition), it says country should devalue its currency to overcome the BOP deficit when demand for X is relatively ELASTIC. this que is just based on this... this is so because it is beneficial as per theory of Demand Elasticity that reduce price when its PED is >1 because it will bring more revenue..
 
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Nope, the answer is A, mark scheme is wrong...
ordinary shareholders fund are for the ordinary only, which means that it doesnt include the preferrence shareholders....
shareholders fund are alllll,, share capital + all the reserves

Hope that helped....
so n ordinary shareholders fund its Sharecapital + P/L + share premium (dnt add any other reserves)
nd r yu sure the marking scheme is wrong :p
thanks :D
 
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answer here is D!
so they have to buy q1 to q2 quantity at a price of p2 and it doesn't explain why we choose B in qns 13 of may 2002
Okay this is how i understood. I presumed that the current level of Qty being consumed is Z and the govt now sets a min price of OP1 and you can see that it created a difference of UVWXY. The que says that this difference is being paid by the govt....so hence i think that area will become the cost to the govt.
However, in the other que i gave, the market was at equilibrium and the min price led to excess supply. So to maintain that the govt has to buy the surplus amount and hence the ans is D.
Its a trick played with the diagram. Am not sure if my way of understanding is right, buh i got it.

i didnt get it coz market clearing price is equilibrium price so how to ans que 13 :/
 
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Mind explaining it then?

See brother govt is giving subsidy of 10c per kg.. That means the thing which cost producer 30 will be sell in market at 20...
Initially its at 15c where QD=QS
Now see from top
Price| QD | QS | QS1 |
---30| 11 | 22 | --
---25| 12 | 19 | --
---20| 13 | 17 | 22
---15| 15 | 15 | 19
---10| 17 | 13 | 17

So after subsidy demand and supply will intersect at 10c with QD=17 and QS=17
 
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Accounting AS
Paper 12- Oct/Nov 2011
Q14
thanks in advance! :D
The answer is C,
Receipts and payments is 2400 cuz all the money received at 2009 was 2400
I/E = u received 2400 of which 100 belongs to year 2008, so remove the 2008 amount, now 2300 left, of which 200 is for year 2010, and we again remove that from 2300, leaving 2100
Add to 2100 everything that belongs to the year 2009 whether accrued in 2010 or prepaid in 2008, giving $2800

Hope that was helpful :/
 
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i didnt get it coz market clearing price is equilibrium price so how to ans que 13 :/
thats the issue with the diagram. We havent been specifically given the equilibrium price, so i "presumed" that Qty Z was what was being initially consumed!
I said i wasn't sure anyways :/

Oh and inflation questions, yea not rocket science :p i just hate that topic! Buh i tried the que now, it dint seem that annoying :D Thanks :)
 
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