Economics, Accounting & Business: Post your doubts here!

[2pac]

ECO DOUBT:
Please help me with q2,q16 and q23 of http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_s11_qp_32.pdf
answers are-A,D and B respectively.
q23 the curve shifting to the left will mean a lower natural unemplyement rate right?

 

[WaleedUQ]

if a firm employs workers from 50 51 and have to pay wages from 600 610 what is the marginal cost of labour ? :S

 

[reina81]

if a firm employs workers from 50 51 and have to pay wages from 600 610 what is the marginal cost of labour ? :S

(610*51) - (600*50) = 1110

 

[reina81]

Q19, Q21, Both are B how?

http://www.xtremepapers.com/papers/... and AS Level/Economics (9708)/9708_03_RP.pdf​

 

[youzair]

may be u r correct...bt business you don't have a definite ans. Bt i dnt think my analysis is wrong either though not upto the mark. I supported the idea of increasing dividend by closing the loss making dpt. and using it as dividend payout. 3-4years mai toh long term investment ka asar bhi hoga....aur profit badh jaega. hahha...i dnt know wether my ans makes sense or nt

the director try to negotiate with the sharehloders but at the end they decided to increse it next year
i know u have done well because despite of knowing everything i wrote worse ans because of headeche! ;/

 

[youzair]

if a firm employs workers from 50 51 and have to pay wages from 600 610 what is the marginal cost of labour ? :S

610*51 - 600*50

first cost of the labour was 30k
to employe extra lab firm should increase the wage of the new as well as the old employee
so the firm is paying now 31,110
so marginal increase in cost is 1,110 i.e the extra cost of employing a marginal emp!

 

[youzair]

Q19, Q21, Both are B how?
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w03_qp_3.pdf

21..
The marginal increase in consumption is 1
12-11=1
13-12=1
14-13=1
15-14=1
16-15=1

while mpc was 1 but NI was increasing with 2m
APC
11/10=1.1
12/12=1
13/14=.92
14/16=.875
15/18=.833
16/20=.8

 

[reina81]

21..
The marginal increase in consumption is 1
12-11=1
13-12=1
14-13=1
15-14=1
16-15=1

while mpc was 1 but NI was increasing with 2m
APC
10/11=
12/12=
14/13=
16/14=
18/15=
20/16=

Dude really sorry!! That was the wrong link
here's the right one :

http://www.xtremepapers.com/papers/... and AS Level/Economics (9708)/9708_03_RP.pdf​

 

[Echelon94]

Q19, Q21, Both are B how?
http://www.xtremepapers.com/papers/... and AS Level/Economics (9708)/9708_03_RP.pdf

​

19: I answered here
21: discovery of oil reserves will lead to demand for investments in the oil industry so that more oil drilling can be carried out, so demand curve shifts to the right. increased propensity to save means people save more proportion of their incomes, which they either invest themselves in business/industries etc., or put in a bank which then grants loans, shifting the supply curve to right...

 

[youzair]

Dude really sorry!! That was the wrong link
here's the right one :

http://www.xtremepapers.com/papers/... and AS Level/Economics (9708)/9708_03_RP.pdf​

n.p

19-----if u see at Y1 the saving is increased!
so mps has increased! :/
21-----supply of loanable funds increase when households start savings more because bank now have more money to give loans. and discovery in natural resource will cause the consumption to rise so D for loanable funds will rise

 

[WaleedUQ]

guys tell me about contestable markets yaar !

 

[memyself]

guys tell me about contestable markets yaar !

Like perfect competition contestable markets are characterised by
-perfect information
-freedom of entry
-no sunk costs (freedom of exit)

But unlike the former, these markets can be dominated by one firm who can be a price maker and firms here may produce differentiated products.

 

[memyself]

Q25 & 27 please?
http://www.xtremepapers.com/papers/... AS Level/Economics (9708)/9708_s10_qp_32.pdf

 

[Bint]

The average consumer divides his expenditure between food, accommodation and clothing in the
ratio 5:3:2.
During the course of a year, the price of food rises by 10 %, the price of accommodation remains
constant and the price of clothing falls by 5 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what
is the increase in the index over the year?
A

2.5 % B 4 % C 5 % D 6 %



CAN SOMEONE PLEASE EXPLAIN TO ME HOW SHUD THIS BE DONE? PLEASE... THE ANSWER IS B

 

[youzair]

The average consumer divides his expenditure between food, accommodation and clothing in the
ratio 5:3:2.
During the course of a year, the price of food rises by 10 %, the price of accommodation remains
constant and the price of clothing falls by 5 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what
is the increase in the index over the year?
A

2.5 % B 4 % C 5 % D 6 %



CAN SOMEONE PLEASE EXPLAIN TO ME HOW SHUD THIS BE DONE? PLEASE... THE ANSWER IS B

year?

 

[WaleedUQ]

The average consumer divides his expenditure between food, accommodation and clothing in the
ratio 5:3:2.
During the course of a year, the price of food rises by 10 %, the price of accommodation remains
constant and the price of clothing falls by 5 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what
is the increase in the index over the year?
A

2.5 % B 4 % C 5 % D 6 %



CAN SOMEONE PLEASE EXPLAIN TO ME HOW SHUD THIS BE DONE? PLEASE... THE ANSWER IS B

Listen
the tottal is 5:3:2 = 10
revised total 5.5 + 3 +1.9 = 10.4
0.4/10 *100 = 4%

 

[youzair]

The average consumer divides his expenditure between food, accommodation and clothing in the
ratio 5:3:2.
During the course of a year, the price of food rises by 10 %, the price of accommodation remains
constant and the price of clothing falls by 5 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what
is the increase in the index over the year?
A

2.5 % B 4 % C 5 % D 6 %



CAN SOMEONE PLEASE EXPLAIN TO ME HOW SHUD THIS BE DONE? PLEASE... THE ANSWER IS B

btw answer is B..4%

 

[naheelnisar]

please ans me.. guys i dint write the name of specific strategy but i have explained it thoroughly.. will i gte marks?

 

[youzair]

The average consumer divides his expenditure between food, accommodation and clothing in the
ratio 5:3:2.
During the course of a year, the price of food rises by 10 %, the price of accommodation remains
constant and the price of clothing falls by 5 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what
is the increase in the index over the year?
A

2.5 % B 4 % C 5 % D 6 %



CAN SOMEONE PLEASE EXPLAIN TO ME HOW SHUD THIS BE DONE? PLEASE... THE ANSWER IS B

as we measure the weighted price index do same calculation
as WaleedUQ did!

 

[Bint]

Listen
the tottal is 5:3:2 = 10
revised total 5.5 + 3 +1.9 = 10.4
0.4/10 *100 = 4%

Thanks alot!