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

Discussion in 'CIE' started by asadmehmood, Oct 2, 2011.

  1. asadmehmood

    asadmehmood

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    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.
     
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  3. Silent Hunter

    Silent Hunter

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    Re: Any body can ask any thing about ECONOMICS

    eco of a levels too?
     
  4. asadmehmood

    asadmehmood

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    Re: Any body can ask any thing about ECONOMICS

    ya for both levels like O-level and A-level . any time.
     
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  5. aegean22

    aegean22

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    Re: Any body can ask any thing about ECONOMICS

    really? :Yahoo!: .hi, i am a new memeber here today! and i get two questions for you . they are AS eco. You can send me a message to [email protected].
    1. discuss, with examples, how far the global distribution of factors of production determines what a country imports and exports?(12 markets)
    2. discuss whether a government should operate a fixed exchange rate system?
    thanks in advance! :)
     
  6. asadmehmood

    asadmehmood

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    Re: Any body can ask any thing about ECONOMICS

    u just need the main points of these questions or complete answer?
     
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  7. sriez

    sriez

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    Re: Any body can ask any thing about ECONOMICS

    Hello Sir, Nice to have you in this site. Can you make a "Guess Question Paper" for O Level Oct/Nov 2011 P22 as I am appearing in 27th of October.
    I would be grateful if you do so.
    Thank you in advance!
     
  8. abcde

    abcde

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  9. asadmehmood

    asadmehmood

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    Re: Any body can ask any thing about ECONOMICS

    ok i will explain Q 7 and ok sriez i will upload sum guess topics ok?
     
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  10. Nibz

    Nibz XPC Global Moderator Staff Member

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    Re: Any body can ask any thing about ECONOMICS

    AOA!
    -> Use Price Elasticity of Demand formula: P.E.D = % change in quantity demanded / % change in price
    -> P.E.D = -1 (nearly all elasticities of demand are negative)
    -> % change in quantity demanded = ( Change in demand (delta Q) / Original quantity (Q) ) x 100 => 80
    -> % change in price = ( Change in price (delta P) / Original Price (P) ) x 100 => (P - 12$/P$)x100

    -> -1 = 0.8 /(P-12/P)
    Use simple maths, the answer'd come out as $2.40.
     
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  11. abcde

    abcde

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    W.S!
    Got it. Thank you. :D Wouldn't % change in quantity demanded be 400% though?
    % change in Qd = (20 000 - 4000)/4000 x 100% = 16000/4000 x 100% = 400% .
     
  12. Nibz

    Nibz XPC Global Moderator Staff Member

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    % change in Qd = (20 000 - 4000)/20 000 x 100% => 80
     
  13. abcde

    abcde

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    Sorry, I don't get it. The original Qd is 4000 and the original price is $12 so these two values should be used in the denominators when calculating % changes in Qd and P, respectively. By the formula who've arrived at, the answer comes as $6.67. :%)
     
  14. asadmehmood

    asadmehmood

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    Q 7? from O-level or A-level.? Its for every one kindly if any one wants to ask any question from the past paper plz mention the year of paper , question number and most importantly mention the question is from O-level or A-levels.
     
  15. abcde

    abcde

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    AS Level, Paper 1, June 2006, MCQ no. 7.
     
  16. asadmehmood

    asadmehmood

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    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 .
     
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  17. Nibz

    Nibz XPC Global Moderator Staff Member

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    Socho ;)
     
  18. asadmehmood

    asadmehmood

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    send me the year of this question and also tell me its from A-level or O-level? I will help you in solving this
     
  19. abcde

    abcde

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    I repeat:
    Thank you! : )
    The only way to get the correct answer in this question is to use the new price as the original price, which is absurd. :p :S
    % change in Qd remains 400% as I mentioned.
     
  20. asadmehmood

    asadmehmood

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    Here is your complete answer:

    You use the formula for Elasticity

    PEoD = (% Change in Quantity Demanded)/(% Change in Price)

    PEoD= 1 *-1* because you always took the abs value when you talk about Elasticity

    % Change in quantity demanded = 4000-20000/20000 = 16000/20000 = 8/10 = 0.8
    % in price change X-12$/12$

    So -1 = 0.8/ ((X-12)/12)
    -(X-12)/12=0.8
    -(X-12)=9.6
    X-12 = -9.6
    X = 2.4

    Hope it will help you
     
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  21. Nibz

    Nibz XPC Global Moderator Staff Member

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    4000 - 20 0000 / 20 000 = 0.8? Are you serious?
     
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