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MCQ Economics Paper 1 October/N Q 24

Discussion in 'International A And AS Level' started by Nobody, Nov 8, 2010.

  1. Nobody

    Nobody

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    I am not able to type the question becouse it contains a graph..
    Would u please refer to the past paper thank you
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  3. Xenon

    Xenon

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    a negative inflation rate means deflation which means that prices of good fell.
    A positive inflation rate means prices has increased even if it is smaller than last year.
  4. Xenon

    Xenon

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    u could hav asked all the questions under one topic instead of several topics.
  5. Nobody

    Nobody

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    Sorry i never knew,. will do it proper next time.

    If a negativ inflation=falling prices and positive figure=rising prices then is not answer D correct?

    Thanks alot
  6. Nobody

    Nobody

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    Re: MCQ Economics Paper 1 October/N Q 29

    This q involves a diagram..
    the diagram shows the supply and demand for pounds in the foreign exchange market with the inital us dollar price of the pound being OP1
    (demand shifted to the right)
    what will increase the dollar price to OP2
    A-a larg inflow into the UK
    B- a large deficit on the UK currenct account
    C- a reduction in interest rates in the UK
    D- a speculative sale of pounds in the foreign exchange market
  7. Nobody

    Nobody

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    MCQ Economics Paper 1 MAY/JUNE Q15

    correct use of cost-benefit analysis should produce an outcome where
    A-social costs are minimised and social benefits are maximised
    B-social benefits are in excess of social costs
    C-marginal private benefits equal marginal social benfits
    D-marginal social benefits equal marginal social costs

    my answer is b but the correct answer is D ?
  8. Nobody

    Nobody

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    Re: MCQ Economics Paper 1 MAY/JUNE Q15


    sorrry its 2006
  9. Nobody

    Nobody

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    MCQ Economics Paper 1 2006 May/June Q19

    a diagram is involved.

    the graph showw the pp for commodities X and Y in two countries M and N
    COUNTRY M 50Y=100X
    COUNTRY N 140Y=560 X

    what will be the effect of an agreement between M and N to exchange the commodities at a rate of 1Y=3X
    A- both countries will gain, because their comsumption possibilities will increase
    B- consumers in country M will lose, because a unitof Y will cosy 3X instead of 2X
    C-Only country N will gain , because N can Produce more of both commodities than M
    D-neither country will gain because they have a comparitive advantage in the production of the same commodity, X

    my answer is b but the correct answer is a ??
  10. Nobody

    Nobody

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    MCQ Economics Paper 1 May/June Q 28

    please help with this q. it involves a diagram.
    this is my understanding the dollar against the euro depreciated because 1 dollar in 2002= 1.55 and in 2003 1 dollar =1.4
    the pound had the opposite effect therefore it appreciated,

    the answer is it both depreciated how is that so?
  11. Nobody

    Nobody

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    MCQ for Economics Paper 1 2005 May/June Q 23

    This question also involves a chart.
    the %change in employment in the primary sector had a -4% change, secondary sector= -2% change and the tertiae=ry sector had a +6% change in employement

    which statement must be true for this country

    A-the primary sector lost more workers than the secondary sector.
    B-unemployment stayed constant.
    C-employment in service industries increased.
    D-there was no change in the total working population.

    my answer is A but the correct answer is C
    would somebody please help to explain why?
  12. Nobody

    Nobody

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    MCQ for economics 2005 May/June Q26

    Which combination of events is most likely to cause inflation?
    exchange rate/direct taxes /money supply
    A- falling/falling/falling
    B- falling/ falling/rising
    C- rising/ rising/rising
    D- rising/ rising/falling

    Thank you
  13. nirajgrg

    nirajgrg

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    Re: MCQ for Economics Paper 1 2005 May/June Q 23

    The correct answer is C because there is an increase in the % of people employed in service or tertiary sector. It has increased by 6 %
    A is not the correct answer because although the percentage is higher in primary sector, the actual number of workers who became unemployed can be lesser. Suppose there were 100 workers in primary sector but 1000 workers in secondary sector,
    the primary sector lost only 4 workers but the secondary sector lost 20.
  14. Nobody

    Nobody

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    would somebody please please answer the other questions thank you nirajgrg :) for ur responce
  15. Xenon

    Xenon

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    they did not give the prices of the goods and services only the percentage changes. this information alone is not enough to conclude whether services cost more than goods.
  16. Nobody

    Nobody

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    MCQ Economics 2007 Paper 1 May/june Q 4

    A farmer can produce both beef and lamb. The opportunity cost of a kilo of beef is 3 kilos of lamb. The price of a kilo of beef is twice that of lamb.

    What should he do if he aims to maximise his revenue?
    A-concentrate on beef
    B- concentrate on lamb
    C- produce beef and lamb in the ratio 3:2
    D- produce twice as much beef as lamb
    ANSWER IS B could someone please do the calculation.
  17. Nobody

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    MCQ for economics 2007 May Q11

    goods X and Y are complements

    what will be the effect on the equilibrium price and quntity of good X of an increase in the supply of good Y?
    Equilibrium price of X/ equi Quantity of X

    A-decrease/decrease
    B-decrease/increase
    C- increase/ decrease
    D- increase/ increase
  18. Xenon

    Xenon

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    Re: MCQ Economics Paper 1 October/N Q 29

    lets cancel out each options one by one,
    B- a deficit in current account means an increase in demand for imports & thus foreign currencies. this will cause a fall in demand of pound
    C- this will also cause a fall in demand of pound
    D- this will increase the supply of pound
    A- a large flow of capital is the only one here that increases the demand if pound and causes appreciation.

    I recommend u read the causes of appreciation and depreciation of currencies.
  19. Xenon

    Xenon

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    Re: MCQ Economics Paper 1 MAY/JUNE Q15

    it will help if u know the cost/benefit diagrams.
    the social efficient/optimum level is considered where the marginal social cost ans benefits intersect and CBA is used to see whether this will take place for a project. market efficient level is where marginal private benefits are equal to private cost. the market efficient level is not desirable as it does not take account of externalities. thus ans D
  20. Xenon

    Xenon

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    Re: MCQ Economics Paper 1 2006 May/June Q19

    country N has absolute adv on both goods. thus trade takes place under the principle of comparative adv. and both the countries will benefit if the exchange rate lies between the domestic opportunity cost ratios. For M, the ratio is 1Y:2X and N is 1Y:4X.
    thus ans: A
  21. Xenon

    Xenon

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    Re: MCQ for economics 2005 May/June Q26

    depreciation will cause imports to become expensive, it will cause import inflation
    fall direct tax will increase purchasing power and increase demand-pull inflation
    rising money supply will increase inflation
    ans: B

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