O Level Economics Help needed! Please help me out.

[Master Killer]

Hey, please help me with some of my queries if you are able to do so. Moreover anyone can post here their queries and I will try my level best to solve it if we are able to do so!

My Queries: (MCQ's)

1) Specimen Paper 1/Q25 (2014)
Which factor is most likely to reduce the average age of a population in a developed country?
(A) a lower birth
(B) a lower death rate
(C) emigration
(D) immigration

NOTE: I know that option A and C are not correct. But according to me both the options B and D seems to be correct, but the mark scheme gave the correct answer for option D. Can you explain why and how?

2)What would an economist regard as a free good.
(A) A free sample of a cosmetic
(B) Free hospital treatment
(C) Ice at the north pole
(D) Ice from a refrigerator

NOTE: What is actually a free good for an economist?

3) What will be the immediate effect if a country's terms of trade worsen?
(A) A given volume of exports will buy less imports
(B) It will experience balance of payments difficulties
(C) Its exports will decrease.
(D) The currency will be devalued.

NOTE: What the phrase 'terms of trade means'?

 

[Dark Destination]

What is the best way to prepare Economics, in a day or two? :/

 

[Dark Destination]

Hey, please help me with some of my queries if you are able to do so. Moreover anyone can post here their queries and I will try my level best to solve it if we are able to do so!

My Queries: (MCQ's)

1) Specimen Paper 1/Q25 (2014)
Which factor is most likely to reduce the average age of a population in a developed country?
(A) a lower birth
(B) a lower death rate
(C) emigration
(D) immigration

NOTE: I know that option A and C are not correct. But according to me both the options B and D seems to be correct, but the mark scheme gave the correct answer for option D. Can you explain why and how?

2)What would an economist regard as a free good.
(A) A free sample of a cosmetic
(B) Free hospital treatment
(C) Ice at the north pole
(D) Ice from a refrigerator

NOTE: What is actually a free good for an economist?

3) What will be the immediate effect if a country's terms of trade worsen?
(A) A given volume of exports will buy less imports
(B) It will experience balance of payments difficulties
(C) Its exports will decrease.
(D) The currency will be devalued.

NOTE: What the phrase 'terms of trade means'?

2 - C?

3 - B?

 

[Dark Destination]

Hey, please help me with some of my queries if you are able to do so. Moreover anyone can post here their queries and I will try my level best to solve it if we are able to do so!

My Queries: (MCQ's)

1) Specimen Paper 1/Q25 (2014)
Which factor is most likely to reduce the average age of a population in a developed country?
(A) a lower birth
(B) a lower death rate
(C) emigration
(D) immigration

NOTE: I know that option A and C are not correct. But according to me both the options B and D seems to be correct, but the mark scheme gave the correct answer for option D. Can you explain why and how?

2)What would an economist regard as a free good.
(A) A free sample of a cosmetic
(B) Free hospital treatment
(C) Ice at the north pole
(D) Ice from a refrigerator

NOTE: What is actually a free good for an economist?

3) What will be the immediate effect if a country's terms of trade worsen?
(A) A given volume of exports will buy less imports
(B) It will experience balance of payments difficulties
(C) Its exports will decrease.
(D) The currency will be devalued.

NOTE: What the phrase 'terms of trade means'?

1 - B can't be right, because in Developed countries the average of population is high i think, due to low death rates. If the death rate further lowers, then the average age of population would further rise. That leaves D as the only logical answer.

 

[Master Killer]

1 - B can't be right, because in Developed countries the average of population is high i think, due to low death rates. If the death rate further lowers, then the average age of population would further rise. That leaves D as the only logical answer.

IF the death rate is low, it logically suggest that the average age of the population will be higher. As suggested by the formulae:
Avg. Age= total age of the population./ total population.
So if the death rate is lower, the total population will be higher, so the avg. Age of the population will be lower. ( as the denomenator ncreases in quantity, the final value decreases in quantity)

 

[Master Killer]

2 - C?

3 - B?

Yes, 2-C is correct. But why? What is actually a free good for economists?

And the answer to 3 is A, not B. But I want to ask why?

 

[Dark Destination]

IF the death rate is low, it logically suggest that the average age of the population will be higher. As suggested by the formulae:
Avg. Age= total age of the population./ total population.
So if the death rate is lower, the total population will be higher, so the avg. Age of the population will be lower. ( as the denomenator ncreases in quantity, the final value decreases in quantity)

Lol, no.
If the death rate is lowered, there will be more people who are OLD, and thus, the population will consist of more people who are OLD, and the average age of population will be higher.

 

[Dark Destination]

Yes, 2-C is correct. But why? What is actually a free good for economists?

And the answer to 3 is A, not B. But I want to ask why?

I don't exactly know what free good means, but common sense implied that something that is available for everyone to use.. e.g Ice at north pole.

 

[Master Killer]

Lol, no.
If the death rate is lowered, there will be more people who are OLD, and thus, the population will consist of more people who are OLD, and the average age of population will be higher.

Yes you are right that If the death rate is lowered, there will be more people who are OLD. But it is also true that if the death rate is low, the population size will be higher. And if the population size gets higher the average age will decrease.

 

[Master Killer]

What is the best way to prepare Economics, in a day or two? :/

Just go through the condensed notes. That's what I will suggest. The attached file will help you.

 

[Master Killer]

I don't exactly know what free good means, but common sense implied that something that is available for everyone to use.. e.g Ice at north pole.

Don't you consider that all the options in the 2nd MCQ is suggesting that they are FREE!

 

[Ashar Khan]

For the first one it is definitely going to be "D". The logic behind it is that, let take Canada as an example. If people from South Africa, a less developed country with low average age, emigrate from there to Canada so the average age of Canada's population will most definitely decrease. (P.S. yeah I know the explanation is a bit vague but that's the best how I can explain it to you)

For the second one the answer is "C". A free good is a good that is not limited in supply e.g air

I'm not quiet sure about the third one but my guess is "A".

I hope I helped! =)

 

[Dark Destination]

Yes you are right that If the death rate is lowered, there will be more people who are OLD. But it is also true that if the death rate is low, the population size will be higher. And if the population size gets higher the average age will decrease.

But by that formula, if the total population increases, so will the numerator.
That relationship you are using, can only be applied if the numerator remains constant. That's maths.
But as the denominator increases, the numerator also increases, as the total age of population also will rise.
And yes, the average age will REDUCE. You are right.
But they asked about which factor is MOST likely.
This factor is not that effective, as the numerator and denominator both increase, so the overall effect is not that much..

Hence, D is the right answer.

 

[Master Killer]

But by that formula, if the total population increases, so will the numerator.
That relationship you are using, can only be applied if the numerator remains constant. That's maths.
But as the denominator increases, the numerator also increases, as the total age of population also will rise.
And yes, the average age will REDUCE. You are right.
But they asked about which factor is MOST likely.
This factor is not that effective, as the numerator and denominator both increase, so the overall effect is not that much..

Hence, D is the right answer.

I thought on your explanation and I think you are right.

 

[Master Killer]

Can anyone please explain me the following terms in GCE O' Level economics (2281)?

1. productive inefficiency
2. allocative inefficiency
3. x inefficiency
4. multiplier
5. laws of returns

Some years mark scheme points out these terms.

 

[Layla..]

Can anyone please explain me the following terms in GCE O' Level economics (2281)?

1. productive inefficiency
2. allocative inefficiency
3. x inefficiency
4. multiplier
5. laws of returns

Some years mark scheme points out these terms.

productive efficiency is when you produce goods and services at lowest factor cost
Allocative efficeincy is when you produce goods and services at minimum cost that are wanted by the consumers
multiplier effect is when income output and employment increases/decrease with an increase/decrease in AD
law of diminishing returns is when productivity falls as more than a certain level of labour and capital are added to fixed amount of land
x inefficiency not sure

 

[Rony020298]

Hey, please help me with some of my queries if you are able to do so. Moreover anyone can post here their queries and I will try my level best to solve it if we are able to do so!

My Queries: (MCQ's)

1) Specimen Paper 1/Q25 (2014)
Which factor is most likely to reduce the average age of a population in a developed country?
(A) a lower birth
(B) a lower death rate
(C) emigration
(D) immigration

NOTE: I know that option A and C are not correct. But according to me both the options B and D seems to be correct, but the mark scheme gave the correct answer for option D. Can you explain why and how?

2)What would an economist regard as a free good.
(A) A free sample of a cosmetic
(B) Free hospital treatment
(C) Ice at the north pole
(D) Ice from a refrigerator

NOTE: What is actually a free good for an economist?

3) What will be the immediate effect if a country's terms of trade worsen?
(A) A given volume of exports will buy less imports
(B) It will experience balance of payments difficulties
(C) Its exports will decrease.
(D) The currency will be devalued.

NOTE: What the phrase 'terms of trade means'?

1. So for the first one its actually D because generally in developed countries, it is young people who immigrate either due to brain drain, in search of work or to pursue their education. in fact in a developed country with more young people average age will fall, a lower death rate will increase the age of older people and average age will rise. Note that average age is total age divided by total population. Hence more people coming, lesser Average Age.

2. A free Good is one which involves no opportunity cost, In fact for an Economist 'B'is a public good. The answer is C because it is available freely as it does not involve any economic activity. But 'A' does involve an economic activty - the production of the good.

3. For question 3 am unable to help you as i didnt reach there in my revision yet!! GOod luck for your exams

 

[Master Killer]

1. So for the first one its actually D because generally in developed countries, it is young people who immigrate either due to brain drain, in search of work or to pursue their education. in fact in a developed country with more young people average age will fall, a lower death rate will increase the age of older people and average age will rise. Note that average age is total age divided by total population. Hence more people coming, lesser Average Age.

2. A free Good is one which involves no opportunity cost, In fact for an Economist 'B'is a public good. The answer is C because it is available freely as it does not involve any economic activity. But 'A' does involve an economic activty - the production of the good.

3. For question 3 am unable to help you as i didnt reach there in my revision yet!! GOod luck for your exams

Paper 1 tu kab ka ho gaya Bro, but thanks for your help!

 

[AbbasMoosvi]

Can someone who's decent at Economics please give me an example of a good answer to a ten-mark (or even eight-mark) question in paper 2? You may choose any one from this for reference - http://papers.xtremepapers.com/CIE/Cambridge International O Level/Economics (2281)/2281_y14_sp_2.pdf