Economics, Accounting & Business: Post your doubts here!

[parthrocks]

I think
I think that the formula for terms of trade talks about the index of export and import prices...Hence,,,its the prices not the value......the prices here means the total % increase or decrease......
if i m wrong plzzz let me know///

ToT = 100 x Average export price index / Average import price index
If export prices are rising faster than import prices, the terms of trade index will rise. This means that fewer exports have to be given up in exchange for a given volume of imports.
If import prices rise faster than export prices, the terms of trade have deteriorated. A greater volume of exports has to be sold to finance a given amount of imported goods and services.

 

[parthrocks]

View attachment 9509
plz someone solve this.

hey m getting 1x=1.6666666666666666666666666666666666

 

[parthrocks]

hey m getting 1x=1.6666666666666666666666666666666666

what about you.....did u get something like this....and hey plzzz solve some of my doubts i posted...

 

[mimiswift]

Que 1 - the question mentions that the economy is currently fully employed, on the PPF. If it chooses to concentrate on the production of capital goods, what it has to sacrifice in the moment is consumption of the consumer goods. Did you get it??

Que 26 - B because, the economy is moving towards the full employment level. Opt D could've been right, if more information had been given?! What if the goods being imported are actually alot cheaper? Then it wouldn't really contribute to inflation. Yea?

Que 28 - its like this, when you import more, supply of Yen will deffa rise. In this case, JApan has reduced its spending on imports leading to lesser supply of Yen. Did u get it? :/

i get qns 1
qns 26- when a country reaches its ppc and employment rises will lead to inflation?
qns 28-what about option A?
thanks alot

 

[mimiswift]

u have asked very stupid que...anyway i will ans in few mins...
hope u wont mind ma language FRIEND

yes yes.....i dont mind as long as my stupid doubts are cleared

 

[Mad Gal]

i get qns 1
qns 26- when a country reaches its ppc and employment rises will lead to inflation?
qns 28-what about option A?
thanks alot

Que 28 - Opt A will reduce demand for Yen, it will then shift to the left. Yea?
Que 26 - think of the LRAS curves, when moving towards full emp level, it will contribute to inflation. Got it?

 

[Mad Gal]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s11_qp_12.pdf
Que 1 - i dont understand Opt B. The ans is B, i chose C. Explain?
Que 21 - ans = c. Why wouldn't A be correct??

MY DOUBTS!!!!

 

[parthrocks]

hey anyone plzz clear my dobts new one's

 

[Muhammad Bin Anis]

Accounts P2, Jun 2005, Q3 last two parts ... anyone please explain what is the limiting factor.. and what do we do next!

 

[mimiswift]

Que 28 - Opt A will reduce demand for Yen, it will then shift to the left. Yea?
Que 26 - think of the LRAS curves, when moving towards full emp level, it will contribute to inflation. Got it?

q.26-yeah
q.28-i get it thanks

 

[parthrocks]

q.26-yeah
q.28-i get it thanks

hey help me with my doubts..plzzz

 

[parthrocks]

HELP NEEDED....

 

[Mad Gal]

q.26-yeah
q.28-i get it thanks

welcome

 

[mimiswift]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s11_qp_12.pdf
Que 1 - i dont understand Opt B. The ans is B, i chose C. Explain?
Que 21 - ans = c. Why wouldn't A be correct??

MY DOUBTS!!!!

qns 1-A and D are definately wrong
C is wrong too as their rewards aren't uncertain!......they calculate it using interest rates! and B might mean that Capital will operate only when there is land, labour(to handle to capital) and enterprise who will but in the capital!
qns 21-It is actually something that you should know!I f you have the eco text book check international trade chapter in BOP section read under the intro of BOP in the last paragraph its said since in practice the 3 accounts won't balance a section of the account is entitled net errors and omissions to allow for discrepancies in the calculations!

 

[mimiswift]

hey help me with my doubts..plzzz

ok!

 

[mimiswift]

HELP NEEDED....

qns 28-Option A and C are wrong(i feel)
i think it's D as a persistent rise in currency reserve means that there are more surpluses year by year so that means disequilibrium......B is wrong as balancing items means equilibrium!

qns 13- its D because they both start from the origin!

qns-5‘a change in the quantity demanded’ also represent movements along the curve this could also be applied to supply!
change in demand means shifts! so answer is D
qns 22- rice : wheat
country X 900:300 ----->3:1
country Y 100:50 ------>2:1
so for these type of qns you do it this was (3+2)/2= 2.5 of rice
(1+1)/2=1 of wheat
so 1 wheat for 2.5 rice so answer is C
qns 19-same way
cloth:food
A 1:2.5
B 1:1
C 1:1.5
D 1.5:1
the qns say 1C for 1.5F
so anwer here is C
qns7- Interest elasticity of demand= (5000-4000)/5000*100) / (8-10/8*100)
=-0.80 so answer is C
hope you understand

 

[mimiswift]

http://www.xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_w02_qp_1.pdf
qns 28- pls explain?

 

[Esme]

http://www.xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_w02_qp_1.pdf
qns 28- pls explain?

Ans should be B becuz in the trade weighted exchange rate we calculate the exchange rate agaisnt a basket of other countries' currencies and so we have to give weightage to each currecy according to how much we trade with them.

 

[Esme]

i dont understand why ppl still get confused in rice and wheat question. i think this is like the third time sumone has asked the question. its pretty simple calculating the ratios.

*no offence* guys

 

[Esme]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s11_qp_12.pdf
Que 1 - i dont understand Opt B. The ans is B, i chose C. Explain?
Que 21 - ans = c. Why wouldn't A be correct??

MY DOUBTS!!!!

why will the rewards earned be uncertain ?? capital earns interest jus like land earns rent. so we'r certain that we'l ean the inteest on our capital. now if yu se B... capital such as equipment and machinery are the result of other factors of poduction i.e. they hav to be produced.

changes in reserves are not part of the balance of payments. however net errors and omssions are needed to balance the BOP.