economics paper31 discussion

[Xenon]

I know that... look at what u wrote... instead of mps u have been writing mpc... that caused the confusion
and how is mps 5/6.. the question says the households spend 5/6 not save

 

[djdead1]

can u answer my questions?

which questions?

http://www.xtremepapers.me/CIE/index.ph ... Economics/

q7 - wont the supply of workers decrease now because they have fewr grs to offer at work? (answer is D )

q 12 - dont get this question. i thot the aswer was A ! (answer is C)


q 13 - i undrstand the part bout production but not bout profits y wud profits increase (answer is C)


q 15 (answer is C )


q17 (answer is B)


q 21 (answer is D)


q 22 - (answer is B)

 

[djdead1]

I know that... look at what u wrote... instead of mps u have been writing mpc... that caused the confusion
and how is mps 5/6.. the question says the households spend 5/6 not save

shhot thats where i created the confusion lol soweeee da txt was so smallll didnt see

ure right its mps and 1 - mpc is what we need

 

[Xenon]

u didn't mention any year

 

[djdead1]

u didn't mention any year

sowie gave u the wrong link

http://www.xtremepapers.me/CIE/Internat ... _qp_32.pdf

 

[Xenon]

then wait a bit.. I haven't gone through that paper yet

 

[djdead1]

then wait a bit.. I haven't gone through that paper yet

sure...thnks

 

[djdead1]

then wait a bit.. I haven't gone through that paper yet

OMG this paper is freakin me out....lets discus da entire paperrr :'(

 

[JamesSmith]

can u answer my questions?

which questions?

http://www.xtremepapers.me/CIE/index.ph ... Economics/

q7 - wont the supply of workers decrease now because they have fewr grs to offer at work? (answer is D )

q 12 - dont get this question. i thot the aswer was A ! (answer is C)


q 13 - i undrstand the part bout production but not bout profits y wud profits increase (answer is C)


q 15 (answer is C )


q17 (answer is B)


q 21 (answer is D)


q 22 - (answer is B)

Explanations

q7 = the supply would increase as labour would be able to earn now within 36 hours work what it had to earn after working 39 hours. supply increases. and demand is going to fall as now it Labour has become more expensive.

q12: AR is also the demand curve. consumers would buy only at OY and not at OX; the firm would continue production in short run and sell at OY which is maximum it can get.

q13: the production remains same because the maximum level of production hasn't been changed. However, the profits would increase as more would be traded within the industry and the firm (which is more efficient) would be able to produce more productive efficiently.


q15: no doubt answer is C
national income = C + I +G + (X -M)
NY -C-I-G+M = exports

 

[JamesSmith]

q17: exchange rate depreciates. nominal wages increase and interest rates fall. so only option left is B

q21: the taxes cause the AD to fall and as a result AS falls. this fall in AS is shown through leftward shift in the AS curve

q22: the bonds are asset to the bank, and the government opens an account with the bank to pay for subsidies. this bank account is a liability to the bank. therefore, both assets as well as liability increase by $100 million.

 

[sourgho16]

May june 2007 paper 3 question no 3.
Can anyone please tell me why reduction in price of good x can't be the answer?

 

[samsung156]

Guys can you help me out with May/June - 2004 - Q4

 

[JamesSmith]

Sourough, here is your asnwer:
budget line is related to one's income. The consumer is able to buy more of X which is possible only if his real income increases.

 

[JamesSmith]

Samsung, this is for you:
(610*51)-(600*50).. this is the MC of Labour for a day. and not the wage.. Marginal wage is 10 but the KC of labour is 1110..

 

[sourgho16]

may june 2004 question no 11

 

[samsung156]

Thank you so much , James

 

[JamesSmith]

Dear Sourough,
you really need to study dude..

in monopoly the firm produces at profit maximzing point i.e. where MR=MC, and the price charged is above marginal cost.
so now the firm will produce at point W and charge X. this will change the consumer surplus into producer surplus. and now the imcrease in profit will be by XYWT and the TWOS would be the cost.

 

[djdead1]

just one more thing.......when u say allow the firms to trade quotas among each other in that cartel question....u mean allow them to sell to each other whatever they themselves have produced....right?

 

[JamesSmith]

no; the firms are allowed to sell the QUOTA (i.e.) maximum level of production that the firms are do. when a firm sells quota it's maximum production is decrease while that of the buyer is increased as per the contract/agreement.

 

[djdead1]

no; the firms are allowed to sell the QUOTA (i.e.) maximum level of production that the firms are do. when a firm sells quota it's maximum production is decrease while that of the buyer is increased as per the contract/agreement.

shit i dont get it :/