Economics Paper 12

[Hassan Javed]

How did the paper 12 go?

 

[Mattman]

What u answer for the ppc and xed question?

 

[123add1]

what was the answer to cost benefit analysis??

 

[Mattman]

I awnsered taxes. This paper is much harder than previous ones

 

[123add1]

why taxes? and what was the answer to XED and PPC plz tell

 

[Mattman]

Well i dont think firms will take into account taxation...for XED is B and PPC is C

 

[123add1]

but change in energy prices will cause a pivoted shift not whole shift.energy prices will only affect industrial goods.do private companies take account of consumer surplus???

 

[Mattman]

Im quite sure private companies do..if they are concerned with prices of course consumer surplus will be taken into account

Well energy affects every good tbh. What was your awnser?

 

[123add1]

i wrote A,decrease in innovation.what was ur answer to the farmers income one?

 

[Mattman]

500 tonnes

Well a decrease in innovation tbh to me means the PPC curve wont expand nor contract or maybe expand a little because your current production methods still exist, decrease in innovation means that less improvements to the method are made, but your current productions is constant IMO.
Thats how i interpret it.

What about the XED?

 

[hitmAn2]

Ya what was the answer demand increase so that income remains constant?

 

[hitmAn2]

why taxes? and what was the answer to XED and PPC plz tell

Its taxes! private ppl dont have fundings in form of taxes....

 

[hitmAn2]

What did u guys answered to consumer surplus??

 

[123add1]

i wrote C.what was ur answer to the bank loans from foreign banks one

 

[123add1]

Its taxes! private ppl dont have fundings in form of taxes....

yr what did u write for PPC and XED?

 

[hitmAn2]

ppc- decrease in employment!
Xed was a tukka partially! I did D as range eventually comes 1.25....

 

[123add1]

yr but decrease in employment means that u r operating below ur current PPC

 

[123add1]

what was the answer to bank loans and lower interest rates.did this affect financial account and net income flows???

 

[Mattman]

yeah i think so.

 

[Mattman]

How do we get the awnser for the XED part anyway? Can anyone explain?