Economics paper 12 9708 discussion

[panpan101]

Most of you haven't probably sat for it! GOOD LUCK! Have enough practice

 

[Deadpunk.mr]

I don't know how hard it was but I wish all of you Good Luck and don;t forget to ACE it....

 

[Junaid Malik]

What did you guys get for 'causes both demand pull and cost push inflation'?

 

[saanya7]

What did you guys get for 'causes both demand pull and cost push inflation'?

It was the import tariff option. Increase in import tariffs, makes imports more expensive, hence increases demand for locally produced goods fuelling demand-pull inflation and imports used in the production process will cause cost-push inflation.

 

[Junaid Malik]

And what about the one with " paper money having advantages over coins"

 

[Junaid Malik]

And the beef and lamb one was "ratio of 3:2" yeah?

 

[saanya7]

And the beef and lamb one was "ratio of 3:2" yeah?

Nope, I think that was specialisation in lamb! Cuz 3:2 Ratio would mean sacrificing too many lambs.
Cuz making 1 beef had an opportunity cost of 3 lambs, soo I think producing in the ratio 3:2 would mean sacrificing too many lambs. I picked the intrinsic value option :/ But that's wrong! I think it's the legal tender option

 

[Nazifa Nawer]

and what seemed the hardest questions to u guys

 

[Junaid Malik]

Nope, I think that was specialisation in lamb! Cuz 3:2 Ratio would mean sacrificing too many lambs.
Cuz making 1 beef had an opportunity cost of 3 lambs, soo I think producing in the ratio 3:2 would mean sacrificing too many lambs. I picked the intrinsic value option :/ But that's wrong! I think it's the legal tender option

Ratio 3:2 would mean you're producing 1.5:1 and the price of one beef was double of lamb though, and why was it legal tender? About the question with the guy who gets the 3 hotels, what did you get were the factors invovled?

 

[saanya7]

It was legal tender because I checked that out on google when I came back home. Paper money , also known as 'fiat' money has no intrinsic value but it used as a legal tender. Soo I'm guessing that's the right answer. As far as the 3:2 question goes, I just worked it out, and yeah you're right. I donno why I opted for that option first but then changed my answer later on.

 

[saanya7]

Ratio 3:2 would mean you're producing 1.5:1 and the price of one beef was double of lamb though, and why was it legal tender? About the question with the guy who gets the 3 hotels, what did you get were the factors invovled?

Oh and, all four factors were involved.

 

[tanzimsakib]

Can u pl discuss about the topic

 

[saanya7]

Ratio 3:2 means u are able to produce 1lamb and 1.5beef. Let’s say a kilo beef’s price is 2$ therefore the total revenue you are getting from 3:2 production is 5$ however if you (the producer) concentrate on lamb only you are able to produce a whole 5.5 kilos of lamb and getting a total revenue of 5.5 $. Oh and all factors were involved (not sure thou) ...

wait so you're saying concentrating on lamb production generates more revenue?

 

[saanya7]

that is exactly what i am saying

0

Well, you just made my evening a tad bit better haha, we're right actually:
https://www.xtremepapers.com/community/threads/mcq-economics-paper-1-october-n-q-24.3282/page-2

The answer is surely option B!

 

[kaka g]

I never studied economics until this Oct/Nov for the theory paper, studied 2 days for it... taking Eco AS privately. For paper 12 practice, I solved 3 past papers yesterday, May June 11, 12, Oct Nov 12... two were easy while one was tougher.
Today's paper wasn't too hard but there were some tricky questions, I'd say 7-8 of them, e.g the lamb/beef one, currency notes/coins, and some others I'll try remembering
After ALOT of thinking, ticked the lamb only option in q3, and Notes are cheaper to produce in the other question... wasn't too sure about the later.

What would be the predicted GT? I think I got 20-21 of them right... just a wild guess (could be alot better)..

 

[kaka g]

Hmm yes... and for the 3 hotels one, I didn't quite understand the question, answered all 4 factors.

BTW what was the answer to the trade union question? I chose A which was from independent to an economic trade zone or something... (I couldn't remember the different trade unions)

 

[a level]

it was abt economic integration, i chose in which the country moves frm free trade to custom uniun(cu), as cu has common external tarrif

 

[a level]

what was the answer in which who will benefit if govt reduces price on min wagerate &max house rent?
also the question in which what does XY represent on an individual demand curve?

 

[panpan101]

Oh for that XY thing, i wrote that its the quantity demanded for any given price... cause i dont think it would be equilibrium as the Supply curve is not present. Not sure about choice D though. Its definitely not consumer surplus.

The economic integration question, i wrote from FTA to Customs because there is common ext tariff present (Custom) and internal tarrifs abolished(Free Trade Area)

I have problems in these questions though

1) The hotel owner, was the answer D? Cause he owns hotels so i guess he's actually organising all the FOP?
4) Money and coins, I answered A, cheaper to produce. I had a trade-off between choice D (intrinsic value). Legal tender is obviously out, cause people can still accept coins and banknotes.
5) XY question... (refer above)
11) The sugar market. There was an effective maximum price set. Thus, i guess that the consumer's expenditure would decrease? B (?) cause i didnt think that there was an increase in CS b the whole triangle, the receipts to sugar producers doesnt make sense.
25) What causes D-pull and C-push inflation? Is it tariffs? or price of oil?

And the balance of trade question... was it correct to add the net transfers?

Andddd.... about the question where the price mechanism doesn't work but rationing does... I wrote that the resources are allocated by the public sector

 

[panpan101]

Min wage rate - workers
price of heating - consumers
maximum price in rent - tenants