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Economics: Post your doubts here (O + A level)

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hussain777

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asadmehmood said:
Re: Any body can ask any thing about ECONOMICS

OCT /NOV 2011 paper 22 (guess paper)


Section A
Answer this question


1. Lesotho National Development Corporation

Since its establishment the Lesotho National Development Corporation (LNDC) has been the Lesotho Government’s main means of promoting industrial development. The LNDC is now expanding its job creation programmed by promoting exports and encouraging firms to grow in size. It also encourages and supports local entrepreneurs. Two of the projects it has supported are local chicken farms and the building of a private hospital. The slogan of the LNDC is ‘We build industry’.

(a) Describe the main role of an entrepreneur. [2]

(b) Identify from the passage one project in the primary sector and one project in the secondary sector. [2]

(c) Explain what is meant by industrial development. [4]

(d) Explain the policies that a government might use to encourage private businesses. [6]

(e) Why might a government wish to create jobs? [6]




















Section B
Answer any three questions
2. Sometimes in an industry a firm buys a smaller competitor which uses similar factors of production. At other times a firm buys another firm which supplies it with the raw materials and other inputs for its production.

(a) Explain what is meant by the factors of production. [4]

(b) Discuss the reasons why some firms remain small. [6]

(c) Identify the types of integration in the two situations described above. [3]

(d) Discuss whether such integration is always beneficial. [7]

3. (a) Distinguish between the private sector and the public sector of an economy. [3]

(b) Discuss the disadvantages of allocating resources through the public sector. [7]

The Singapore government plans to build Asia’s first airport dedicated to serving low-cost airlines. Its estimated cost is $26.5 million and it will be designed to handle about 2.7 million passengers each year.

(c) When airports are planned, there are usually some people who campaign to stop them being built. What disadvantages might the building of an airport have? [4]

(d) A government is considering paying for a similar airport by either increasing income tax or introducing a specific (flat-rate) tax on air passengers. Discuss which of these you would favour.
[6]
4. In the UK four large supermarket companies dominate the sale of food but there are also many small food shops.
(a) Define a fixed cost and a variable cost, and identify one fixed cost and one variable cost that the supermarket might have. [4]

(b) Discuss why a small food shop might survive when there are very large supermarkets. [6]

(c) How do some firms become large? [4]

(d) Discuss how a supermarket might benefit from economies of scale. [6]








5. (a) Using examples, contrast a direct tax with an indirect tax. [4]

(b) Discuss how a government might use taxation to affect the distribution of income. [6]

(c) Explain the concept of price elasticity of demand. Choose two goods and explain why they might have different price elasticities of demand. [6]

(d) Use the concept of elasticity to discuss how indirect taxes may be used by a government to

(i) increase its revenue,

(ii) decrease imports. [4]

6. A multi-national was described as a large company that employs people from different countries and is controlled by a government.

(a) Explain whether this is a correct description. [4]

(b) If a company is large and employs many people it often has to deal with trade unions. What is a trade union and what is its role in an economy? [6]

(c) How might a company become large? [4]

(d) Multi-national car companies are sometimes said to have economies of scale. Analyse what this means for such companies. [6]

7. (a) Explain the difference between an equilibrium price and a disequilibrium price. [4]

(b) Many more people travel by aeroplane today than ten years ago. With the help of a demand and supply diagram, explain what might have happened in the market for air travel to cause this increase. [6]

(c) Define price elasticity of demand and suggest why different goods have different price elasticities. [5]

(d) Discuss whether knowledge of price elasticity of demand is of use to a company selling holiday tours. [5]

NOTE: ( its just a sample paper based on importan questions) Do not depend on this sample paper only .
Click to expand...
GREAT !
 
J

juanpablo

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HELPP with profit maximization... okei so we all agree that the optimum point of production of a good is where MC=MR. Now take for instance that i own a factory and make pens. I have one machine that allows me to produce 100 pens. And I sell them all so I decide It is time to go full economy of scale and buy another machine which costs me, say $200.

The price of my pens when I had one machine was $1 each and they costed me say $ 0.5 but now that I want to produce 101 pens, that pen number 101 costs me $200 right? that means that marginal cost for producing one more pen is $250-$50 which is $200.

According to MC=MR the profit I have to make from each pen is $200 because that is what costed me produce one more pen?
 
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TengkuAmir10

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1. If a firm produces capital and consumer goods, then it went from its current point on the PPC to a point where it produces less of capital goods and more of consumer goods, what is the most likely position of the PPC in the future?

A. Can produce same amount of capital good, but less consumer goods.
B. PPC shifts inward, producing less of both.
C. Can produce less amount of capital good, but more of consumer good. (PPC inverted shift)
D. PPC shifts rightward, being able to produce more of both.

2. A firm is considering whether to buy a piece of capital equipment which will cost 2000$. It estimates that the equipment will last for two years. The alternative is to lend the money to a finance company at a compound rate of interest of 5%.
What is the minimum increase in revenue the firm must expect to make it worthwhile buying the equipment?

A. 101
B. 206
C. 2001
D. 2206

3. As a result of a free trade agreement, toys produced in Africa can be supplied to European markets. These toys are much cheaper than similar toys produced in Europe but are not of such good quality. What will happen in Europe to "expenditure on toys", "employment in European toy companies" and "imports from Africa"?

A. *Expenditure Decreases, *Employment Decreases, *Imports Decreases
B. *Expenditure Increases, *Employment Decreases, *imports Uncertain
C. '' Increase, '' Uncertain, '' Increase
D. '' Uncertain, '' Uncertain, ''Increase
 
S

Sam501

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Hello, sir. You can count me in too, as one of your students. I have a question I'm stuck at. Could you just explain me what to do.(like what points to write about and so on)
Q: Explain about two policies government may introduce to get rid of externalities.
Thank you very much. My e-mail ID is [email protected]
 
N

nishni perera

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asadmehmood said:
I teach economics, If anyone of you has any problem in this subject, you can ask here. I will be more than happy to help.
Click to expand...
Can you help me in answering this question which in the May/June 2013 paper 2 code 2281/22. Q. Discuss to what extent supply side policies are likely to be more effective than monetary policies in stimulating the economic growth . (10 marks) Your help is greatly appreciated .... Thank you in advance ....
 
H

hussain777

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nishni perera said:
Can you help me in answering this question which in the May/June 2013 paper 2 code 2281/22. Q. Discuss to what extent supply side policies are likely to be more effective than monetary policies in stimulating the economic growth . (10 marks) Your help is greatly appreciated .... Thank you in advance ....
Click to expand...
 
lxelle

lxelle

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hussain777 Hey all. Please help me put with this essay : discuss the ways in which a government might influence private investment in order to try to ensure sufficient economic growth in a country.
thanks in advaned
 
Romeo Sheikh

Romeo Sheikh

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Jane Voon said:
hey can someone tell me how an increase in interest rates causes an increase in the opportunity cost of current consumption to the consumer? please i dont understand
Click to expand...
Interest is the return of savings. This mean people would earn more if they save more. Since disposable income can either be spend or saved, more spending i.e. consumption would have a cost in terms of high monetary returns through saving which would be foregone hence its opportunity cost.
 
Heyyy

Heyyy

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TengkuAmir10 said:
1. If a firm produces capital and consumer goods, then it went from its current point on the PPC to a point where it produces less of capital goods and more of consumer goods, what is the most likely position of the PPC in the future?

A. Can produce same amount of capital good, but less consumer goods.
B. PPC shifts inward, producing less of both.
C. Can produce less amount of capital good, but more of consumer good. (PPC inverted shift)
D. PPC shifts rightward, being able to produce more of both.

2. A firm is considering whether to buy a piece of capital equipment which will cost 2000$. It estimates that the equipment will last for two years. The alternative is to lend the money to a finance company at a compound rate of interest of 5%.
What is the minimum increase in revenue the firm must expect to make it worthwhile buying the equipment?

A. 101
B. 206
C. 2001
D. 2206

3. As a result of a free trade agreement, toys produced in Africa can be supplied to European markets. These toys are much cheaper than similar toys produced in Europe but are not of such good quality. What will happen in Europe to "expenditure on toys", "employment in European toy companies" and "imports from Africa"?

A. *Expenditure Decreases, *Employment Decreases, *Imports Decreases
B. *Expenditure Increases, *Employment Decreases, *imports Uncertain
C. '' Increase, '' Uncertain, '' Increase
D. '' Uncertain, '' Uncertain, ''Increase
Click to expand...

B
B
D
Please correct me if wrong
 
adorable12

adorable12

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Discuss whether the law of diminishing returns contradicts the concept of economies of scale.?? alevels
can any one help with its ans..?
 
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