Economics doubt. Please help.

[bilal khan ksa]

I too have a doubt.

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Economics (0455)/0455_s13_qp_11.pdf

Q23 please. I have a general problem when it comes to the charts. Although I get them right sometimes.

 

[m10cr7]

I too have a doubt.

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Economics (0455)/0455_s13_qp_11.pdf

Q23 please. I have a general problem when it comes to the charts. Although I get them right sometimes.

I've replied to ur question here : https://www.xtremepapers.com/community/threads/economics-mcqs.34016/#post-802494

 

[Zubair Junjunia]

Why is the answer D? why will external economies of scale reduce? There are less competitors and risks of beating it out of business is reduced. Their confidence could increase or decrease cause but why does economies of scale decrease?

Firstly, the competition would reduce because a large competitor went out of business
Secondly, the confidence would decreases because people would be unsure as such a large and well known company had collpased
Thirdly, when XL was operating, the company was creating external economies of scale because it is a large company and it helps businesses around it. Therefore when the company collapsed, the external economies decreased.

All things were reduced therefore answer = D

 

[abdulhafeez]

how was your paper ???? ahmed

 

[Wali Faisal]

What happens if we answer more than 3 questions in the 2nd paper of economics (structured questions) for olevel, how will they mark it?

 

[Layla..]

What happens if we answer more than 3 questions in the 2nd paper of economics (structured questions) for olevel, how will they mark it?

Nope! Lol, you won't even get that much time! They will be simply ignored

 

[abdulhafeez]

What happens if we answer more than 3 questions in the 2nd paper of economics (structured questions) for olevel, how will they mark it?

It's of no use, you'll waste your time and they won't mark the one you got right. They'll just mark in order..

 

[Andrew Nabil]

I have a question , you can say it maybe a silly question ?
But I need the answer urgently ! plz
In Paper 2 Economics 0455 ( Structured Questions ) , How should the answers look like : Answer in points or answer should be in paragraphs
please answer in advance

 

[Layla..]

I have a question , you can say it maybe a silly question ?
But I need the answer urgently ! plz
In Paper 2 Economics 0455 ( Structured Questions ) , How should the answers look like : Answer in points or answer should be in paragraphs
please answer in advance

Answers in points will NOT get more than maximum of half marks available for the question. Avoid writing in points. Your answer should be in paragraphs

 

[Mantis]

Heres alot of info on A-level Economics:

http://www.alevel.co.uk/a-level-economics/

 

[husnain99]

Answers in points will NOT get more than maximum of half marks available for the question. Avoid writing in points. Your answer should be in paragraphs

What was ur grade in Eco ?

 

[Sana Adnan]

I do... hope they are helpful to you..

can you explain me this MCQ?

An economy has one bank and no government controls. a 20 % cash to total deposits ratio is adequate to meet the normal demands of custormers.
How much additional credit could finally be created if $1000 in cash is deposited in the bank.

A) $800
B) $1000
C) $1200
D) $4000

the answer is D

Hello,
This question is based on the concept of credit multiplier and liquidity ratio.
Liquidity ratio is the minimum liquid cash out of total deposits that the bank is required to mantain. In this case its 20%. Credit Multiplier refers to how many times can you lend out every $1 of deposit.
Step 1: Calculate credit multiplier using formula --> 100/ liquidity ratio = 100/20 =5
This means the bank can create 5 times credit on every $1 of deposit.

Step 2: Now the bank has cash deposit of $1000. So it can create credit of $1000 x 5 = $5000

Step 3: The bank has to mantain a liquidity ratio of 20% at all times which means it can only lend 80% of the total available credit.
So $5000 x 80% = $4000

therefore the answer is D.

hope this helps.