Economics P12 june 2012 ANSWERS...!!!

[m3hdi *n3No*]

the xed question the answer was D. because the xed value is 2.0 which is exactly between 1.75 and 2.5

no xed wd x then wid y 1.66 /2

 

[mhalvi]

the xed question the answer was D. because the xed value is 2.0 which is exactly between 1.75 and 2.5

no it was 1.66 n 2

 

[mhalvi]

the inflation one was d. and yes it was consumer surplus. this is soooo confirmed so stop arguing over it. and the demand had to shift by 1000 units. confirmed.

demand had to shift 500 confirmed!

 

[mhalvi]

how can it be tax payment when the private firms have to pay tax to the government

I think you have misread the question it was asking that what a private firm would take into account but a govt. wont!

 

[mhalvi]

I think you have misread the question it was asking that what a private firm would take into account but a govt. wont!

Anyways tax payment is confirmed the right answer

 

[m3hdi *n3No*]

Anyways tax payment is confirmed the right answer

u stop it arguing without knowledge u dont remember the qs nd are forcing people to accept ur answere i had it wid u

 

[mhalvi]

u stop it arguing without knowledge u dont remember the qs nd are forcing people to accept ur answere i had it wid u

u stop it arguing without knowledge u dont remember the qs nd are forcing people to accept ur answere i had it wid u

the same goes for u...!! They are not my answers,I have made this thread after consulting and discussions wid many people wid full knowledge,so mind U, u were nt the only one to give the paper!!
Let the marking scheme decide whats ryt n whts wrong

 

[dJB]

the xed question the answer was D. because the xed value is 2.0 which is exactly between 1.75 and 2.5

You only checked with increase in price..... when price increases XED is 2 .....but if u see when price decreases Xed is 1.66 so answer is 1.66 to 2.0

 

[Agassi Cazaubon]

Are you people sure the question asked " what would private firms take into account that the government wouldn't ?" because I finished the paper in about 30 minutes and had time to look over all my answers and I remember it being what would governments take into account that private firms wouldn't .. and why would governments take into account tax payments when they are choosing a project ? All the other answers were private costs/benefits which the firm would take into account. Seriously WHY would the government care about tax payments when choosing a project? They have no taxes to pay unless its an overseas project

Oh, and I don't see why a " decrease in innovation" would lead to a contraction of the production possibilities curve. I mean I see why an increase in innovation would expand the production possibilites, but when there is a decrease in innovation current technology or methods of production aren't lost. Whoever thinks this is the correct answer please explain your reasoning to me. I personally think that the production possibilities curve would show the possible domestic supply combinations of these products, if there is increase in cost of production then the possible amount of each product produced would be reduced.. resulting in a contraction of the curve... no ? I really don't think the cause of the price increase matters as much as its effect

 

[m3hdi *n3No*]

Are you people sure the question asked " what would private firms take into account that the government wouldn't ?" because I finished the paper in about 30 minutes and had time to look over all my answers and I remember it being what would governments take into account that private firms wouldn't .. and why would governments take into account tax payments when they are choosing a project ? All the other answers were private costs/benefits which the firm would take into account. Seriously WHY would the government care about tax payments when choosing a project? They have no taxes to pay unless its an overseas project

Oh, and I don't see why a " decrease in innovation" would lead to a contraction of the production possibilities curve. I mean I see why an increase in innovation would expand the production possibilites, but when there is a decrease in innovation current technology or methods of production aren't lost. Whoever thinks this is the correct answer please explain your reasoning to me. I personally think that the production possibilities curve would show the possible domestic supply combinations of these products, if there is increase in cost of production then the possible amount of each product produced would be reduced.. resulting in a contraction of the curve... no ? I really don't think the cause of the price increase matters as much as its effect

that is my point mvhvali is screwing wid us

 

[m3hdi *n3No*]

Are you people sure the question asked " what would private firms take into account that the government wouldn't ?" because I finished the paper in about 30 minutes and had time to look over all my answers and I remember it being what would governments take into account that private firms wouldn't .. and why would governments take into account tax payments when they are choosing a project ? All the other answers were private costs/benefits which the firm would take into account. Seriously WHY would the government care about tax payments when choosing a project? They have no taxes to pay unless its an overseas project

Oh, and I don't see why a " decrease in innovation" would lead to a contraction of the production possibilities curve. I mean I see why an increase in innovation would expand the production possibilites, but when there is a decrease in innovation current technology or methods of production aren't lost. Whoever thinks this is the correct answer please explain your reasoning to me. I personally think that the production possibilities curve would show the possible domestic supply combinations of these products, if there is increase in cost of production then the possible amount of each product produced would be reduced.. resulting in a contraction of the curve... no ? I really don't think the cause of the price increase matters as much as its effect

1 assumption is according to dictionary innovation means technology + ideas if technology decreases then ppc wll shift inwards secoundly increase in price of power supplies would create inflation but wouldnt cause a fully emplyed economy production capity or production to decrease and maybe power supples are inelastic

 

[Agassi Cazaubon]

1 assumption is according to dictionary innovation means technology + ideas if technology decreases then ppc wll shift inwards secoundly increase in price of power supplies would create inflation but wouldnt cause a fully employed economy production capity or production to decrease and maybe power supples are inelastic

Doesn't the word " innovation" imply an improvement in the methods and technology used in production ? Key word *expansion* or new things being added, so with decreased innovation this doesn't mean that there aren't any new production methods/ technology being introduced at all.. just that it is less than it used to be. So I think that would cause decelerating growth rather than negative growth.

Oh, and I agree it would cause inflation, more specifically cost-push inflation, causing the aggregate supply curve to shift to the left reducing the total potential volume of goods supplied in the economy. Since within the framework of a production possibility curve we assume that only two products are produced, then the logical extension of this would be a decrease in the volume of these two goods provided by the economy.

 

[m3hdi *n3No*]

u are right but ppc show full employment of resources not the resources being made for eg i had an potential of making 1500 tons of wheat and 1000 cars now after the decrease in inoovation ihave no idea of how to produce goods so next year my full potential is 1000 tons wheat and 500 cars

 

[m3hdi *n3No*]

now officially it an overheated debate even if u or me are incorrect we are still getting good grades =)

 

[mhalvi]

now officially it an overheated debate even if u or me are incorrect we are still getting good grades =)

thts the spirit!!!
No need to fight for one or two MCQs thnk of the other more than 25 that we all hopefully got right,keeping in mind that A would be on 24.
So thank ALLAH for his blessings and focus on the next paper.

 

[dJB]

Doesn't the word " innovation" imply an improvement in the methods and technology used in production ? Key word *expansion* or new things being added, so with decreased innovation this doesn't mean that there aren't any new production methods/ technology being introduced at all.. just that it is less than it used to be. So I think that would cause decelerating growth rather than negative growth.

Oh, and I agree it would cause inflation, more specifically cost-push inflation, causing the aggregate supply curve to shift to the left reducing the total volume of goods supplied in the economy. Since within the framework of a production possibility curve we assume that only two products are produced, then the logical extension of this would be a decrease in the volume of these two goods provided by the economy.

inflation doesnt necessarily mean fall in production possibility....... because available resources effect ppc price of the resources has no effect on ppc ........ innovation in economics terms mean best possible way to use resources i.e. in other words technology

 

[Mattman]

thts the spirit!!!
No need to fight for one or two MCQs thnk of the other more than 25 that we all hopefully got right,keeping in mind that A would be on 24.
So thank ALLAH for his blessings and focus on the next paper.

eh? gt or w/e release alrdy?

btw for the 1.66 and 2 XED question i think it was a trick question because the question ask WITHIN what range are the XEDs at and so it is not 1.66 to 2 it is another awnser

 

[mhalvi]

eh? gt or w/e release alrdy?

btw for the 1.66 and 2 XED question i think it was a trick question because the question ask WITHIN what range are the XEDs at and so it is not 1.66 to 2 it is another awnser

huhhh.......is 1.66 n 2 not within the range??

 

[Sonish Raj Pant]

Mattman i agree with you... i asked my teacher,who is also an examiner, abt that question and he said that since the question said within the limits, the answer had to be B !

 

[Agassi Cazaubon]

inflation doesnt necessarily mean fall in production possibility....... because available resources effect ppc price of the resources has no effect on ppc ........ innovation in economics terms mean best possible way to use resources i.e. in other words technology

Didn't you read what I wrote ? An increase in energy cost will cause cost-push inflation which will cause the Long Run Aggregate Supply curve to contract leading to reduced potential output by firms.. and hence an inward shift of the PPC.. and how does innovation mean best possible way of using resouces ? that is efficiency, even if you use that definition it would result in production at a point inside the ppc but not a contraction of the curve itself.. a shift in ppc is due to a reduction in potential output under fully employment.. this is exactly what long run aggregate supply is and cost push inflation decreases it