ECONOMICS P12 ANSWERS

[hmahmood18]

1 B
2 D
3 D
4 C
28 C
29 C
30 C


Terms of trade -20

External Benefit A rise to D1

Advantage of CBA B

Beneficial Exchange Rate Q18 C

Fish Mcq D

Mcq with exchange rate and current a/c J CURVE

Cross elasticity +0.16

Supply Curve shift to Right Decrease in cost of production

Ineffectve Max price Mcq Equilibrium at OQ

Paraguay and Argentina D

Other inflation table Real wage increase OPTION A

Disadvantage of trade protection Domestic price level increase

Retail price mcq was cost of living increase

2 supply curve Mcq of agricultural product Answer D YZ

Japanese MNC in UK Answer worsen and uncertain


CONFIRMED ANSWERS.

 

[Superman]

Your answer regarding the Japanese MNC is wrong since it asks about the current account for visible goods of the UK, which will improve since the Japanese firm will be exporting goods from the UK. If it included repatriation of profits, their BoP would deteriorate.

Please do not state that your answers are confirmed if you are not sure of them.. Alot of people might take you seriously.

 

[naheelnisar]

plxx can any tell the questnx also ??

 

[djdead1]

wht ws da question about CBA could u remind us plz? what was da "fish" mcq? lol. what ws da option B that uv mentioned in the CBA question?

 

[djdead1]

Your answer regarding the Japanese MNC is wrong since it asks about the current account for visible goods of the UK, which will improve since the Japanese firm will be exporting goods from the UK. If it included repatriation of profits, their BoP would deteriorate.

Please do not state that your answers are confirmed if you are not sure of them.. Alot of people might take you seriously.

so true.....atleast dres no doubt about this one...the BOP CANNOT deteriorate bcoz of that... :/

 

[hmahmood18]

Regarding the Japanese MNC:

the short run effect on the current balance of trade would be worsening coz they would start selling immediately in th uk ( IMPORTS ) and exporting from there will take time.

 

[JamesSmith]

the answer about the maximum price is also contro. The question clearly stated that it was to achieve some aim and not just equilibrium... i marked "to ensure excess supply" though it was evident that maximum price was ineffective as it was above equilibrium.

 

[JamesSmith]

Regarding the Japanese MNC:

the short run effect on the current balance of trade would be worsening coz they would start selling immediately in th uk ( IMPORTS ) and exporting from there will take time.

Japanese firm would now be producing in UK. UK had to earlier import but now after the firm establishes in UK there would be decrease in UK imports rather the firm would be even exporting to other markets in the Europe thus the exports of UK rise as well.

Imports: decrease
Exports: Increase

 

[Sameeer]

the answer about the maximum price is also contro. The question clearly stated that it was to achieve some aim and not just equilibrium... i marked "to ensure excess supply" though it was evident that maximum price was ineffective as it was above equilibrium.

I am sorry but you are wrong maximum price is meant so that price shouldn't increase from the given point and should fluctuate between the point according to forces of demand and supply...In the question it was given maximum price above equilibrium so the price set by forces of demand and supply would be equilibrium...hope you understand

 

[xenvox]

The ans to the japneese MNC is improve and uncertian, It is a past paper repeated question, Check the marking scheme.

 

[JamesSmith]

hey Sameer, yea i definitely understand the concept of maximum pricing (i.e. to be effective it should be set under the equilibrium price) but somehow i was stuck with the point when the examiner asked :"what aim does it achieve?" only excess supply was something i could thought of as market would even have been in equilibrium before the max. price was set. so no new aim would have been achieved.
This was the only question which made be do paper for whole one hour otherwise i was done with rest within first 20 mins.!!! :s

 

[Echelon94]

the answer about the maximum price is also contro. The question clearly stated that it was to achieve some aim and not just equilibrium... i marked "to ensure excess supply" though it was evident that maximum price was ineffective as it was above equilibrium.

hey J10/p11/q11 has a bit similar concept, check it out...
http://www.xtremepapers.me/CIE/Internat ... _qp_11.pdf

 

[JamesSmith]

Echelon94, i did this paper and marked the answer correctly with p1q1; but still I'm not sure with the answer to the j11/p12..