Economics Paper 22

[Nisrit Pandey]

how was everybody's exam? expecting the grade threshold to be around 23-26 ! data response was a bit confusing

 

[ibadsiddiqi]

Paper was brilliant MashaAllah..but yes GT will remain low as it has in almost all the previous papers..

 

[student92]

alhamdullilah, paper went good

 

[Nisrit Pandey]

What would be the answer with that of recession in 2009 affecting international trade?

 

[123add1]

did any one attempt q2??

 

[Rashmit Arora]

What would be the answer with that of recession in 2009 affecting international trade?

I have the same doubt. Recession and its effects are part of the A2 portion, don't know how they asked such a question in paper 2.

 

[Mattman]

I wrote that the fall of demand in a recession will improve or worsen countries BoT, dpeending on who exports or imports.
And the contraction in output will make it so that there will be less intl trade.

I didnt manage to write as much on 4b as i wanted....i forgot to include PED as a factor to the effects. How much marks will i lose?

What you people wrote for 1g? the last part. I explained how fiscal/monetary reduces demand but the disadvantages is that demand for domestic goods may fall as well.
If YED of imports is low not much effect
And govt failure​

 

[Rashmit Arora]

I wrote that the fall of demand in a recession will improve or worsen countries BoT, dpeending on who exports or imports.​

And the contraction in output will make it so that there will be less intl trade.​

​

I didnt manage to write as much on 4b as i wanted....i forgot to include PED as a factor to the effects. How much marks will i lose?​

​

What you people wrote for 1g? the last part. I explained how fiscal/monetary reduces demand but the disadvantages is that demand for domestic goods may fall as well.​

If YED of imports is low not much effect​

And govt failure​

For 1,g) what you wrote is right. You should've mentioned that they are DEFLATIONARY fiscal and monetary policies. I hope you did that. Plus another negative effect is that domestic consumers will have lesser choice.

For the recession question, I based my answer on the Balance's given in the case. wrote something, don't remember what

 

[123add1]

what was the answer to Q2a

 

[Nisrit Pandey]

I wrote that the fall of demand in a recession will improve or worsen countries BoT, dpeending on who exports or imports.​

And the contraction in output will make it so that there will be less intl trade.​

​

I didnt manage to write as much on 4b as i wanted....i forgot to include PED as a factor to the effects. How much marks will i lose?​

​

What you people wrote for 1g? the last part. I explained how fiscal/monetary reduces demand but the disadvantages is that demand for domestic goods may fall as well.​

If YED of imports is low not much effect​

And govt failure​

yes i wrote the similar! normal goods and inferior goods! i explained the ones selling the normal goods wouldnt benefit due to falling incomes and increasing unemployment meanwhile those selling more inferior goods would benefit

 

[Mattman]

For 1,g) what you wrote is right. You should've mentioned that they are DEFLATIONARY fiscal and monetary policies. I hope you did that. Plus another negative effect is that domestic consumers will have lesser choice.

For the recession question, I based my answer on the Balance's given in the case. wrote something, don't remember what

i wrote contractionary sooo i think its the same thing i think
What you wrote for the "pros" of those policies? since it was a discussion

 

[Nisrit Pandey]

th

For 1,g) what you wrote is right. You should've mentioned that they are DEFLATIONARY fiscal and monetary policies. I hope you did that. Plus another negative effect is that domestic consumers will have lesser choice.

For the recession question, I based my answer on the Balance's given in the case. wrote something, don't remember what

the question was about international trade! wasn't it? and could we write the effect on the economy?

 

[Mattman]

^for which question? u can write effect on economy for 1g

 

[ibadsiddiqi]

what was the answer to Q2a

In question 2a u had to mention the characteristics of money and then you will mention how many can fulfill its functions in all three economic systems..like it serves as medium of exchange because its recognizable and generally acceptable, it can serve as a unit of account etc etc

 

[Nisrit Pandey]

^for which question? u can write effect on economy for 1g

the one with explain any two effects of recession of 2009 in international trade

 

[Mattman]

the one with explain any two effects of recession of 2009 in international trade

as long as you link the effect on the economy by a recession to intl trade should be ok


What you ppl write for the "Why current account surplus is a goal?"

 

[ibadsiddiqi]

I wrote that the fall of demand in a recession will improve or worsen countries BoT, dpeending on who exports or imports.​

And the contraction in output will make it so that there will be less intl trade.​

​

I didnt manage to write as much on 4b as i wanted....i forgot to include PED as a factor to the effects. How much marks will i lose?​

​

What you people wrote for 1g? the last part. I explained how fiscal/monetary reduces demand but the disadvantages is that demand for domestic goods may fall as well.​

If YED of imports is low not much effect​

And govt failure​

your answer to the international trade was correct though you couldve elaborated a bit more.
I didnt answer 4b so i dont know abt that..
for the last part you had to mention three things..one is fiscal policy that is increase in direct taxes. second was monetary policy like increase in interest rates to increase the cost of borrowing. and then you had to mention devaluation.

 

[ibadsiddiqi]

as long as you link the effect on the economy by a recession to intl trade should be ok


What you ppl write for the "Why current account surplus is a goal?"

i dont really remember but i think i wrote about how a surplus can be used to finance an unexpected deficit, how it increase export revenue and a couple of other stuff. I think the max i'll get in that is 3

 

[Nisrit Pandey]

as long as you link the effect on the economy by a recession to intl trade should be ok


What you ppl write for the "Why current account surplus is a goal?"

i wrote to correct deficit in financial and capital account
it gives a country a stronger currency
better trade position
and more people would be willing to invest there seeing that

 

[Mattman]

your answer to the international trade was correct though you couldve elaborated a bit more.
I didnt
nswer 4b so i dont know abt that..
for the last part you had to mention three things..one is fiscal policy that is increase in direct taxes. second was monetary policy like increase in interest rates to increase the cost of borrowing. and then you had to mention devaluation.

Yah i said increase in tax rates etc.Just simplifying, whats about devaluation?

For that question i just wrote some stuff..
A current account surplus can mean a good BoT,more revenue wil be earned so firms benefit, etc, and it can contribute to a BoP surplus which can appreciate the currency, can reduce cost push inflation. Not sure if thats the awnser thats wanted though..I think i wrote 1 more point but i forgot