A2 ECONOMICS: Guess Paper-4

[Bint]

i will explain it to you after offering my prayer. if anyone can help then plz come forward. its very simple situation. I wish you should have studied my books!

ok sir

 

[memyself]

http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q11 ?
Aren't all firms' LRAC curve the same irrespective of their market structure?

 

[mariam_anwar]

Please help me with this ques .....
In a closed economy, the full employment level of income is $200 million.
C =
4
3
Y,
I = $(50 – 5r) million,
where C = consumption,
Y = income,
I = investment,
r = the rate of interest.
If planned government expenditure is $30 million, what rate of interest would be required for there
to be full employment?
A 2% per annum
B 4% per annum
C 6% per annum
D 8% per annum

 

[Qamar Baloch]

Oh i get it, JazakAllah!

When u get back from prayers, please answer Q17 same paper too. I don't get the how liquidity trap affects output? It was related to interest rate not falling anymore, wasnt it

7A Economic rent is the difference between original earning and transfer earning. So, x-y will be the economic rent. the area above supply curve but below equilibrium wage is economic rent and the area below supply curve is transfer earning which he can get from next best alternative job.

 

[Bint]

Sir can u explain it to me now please?
and i wanted to ask u one more thing and that is how increase in the volume of output cause the interest rates rise? thank u! Qamar Baloch

 

[2pac]

anyone can help in oct nov 05 question 8 why isnt the ans B

its not B because the change in output is constant at 100 but for every change in 100 the marginal costs have increased.
80 to 180,180 to 300,300 to 440 and so on so therefore decreasing returns throughout.

 

[patricia8686]

hi i have a few questions here!

o/n/06 :
no 2, no 4, no30.

anyone pls help me tq!

 

[Bint]

What would represent a monetarist anti-inflationary policy?
A an increase in indirect taxation


B direct foreign exchange rate intervention

C the introduction of maximum prices


D the sale of securities on the open market

 

[Qamar Baloch]

oct nov 05 question 6 pls help em confused

when a worker prefer leisure to work the substitution effect will increase and income effect will decrease. it normally happens in backward bending supply curve where a worker can earn more even by working lesser hours.

 

[Bint]

What would represent a monetarist anti-inflationary policy?
A an increase in indirect taxation


B direct foreign exchange rate intervention

C the introduction of maximum prices


D the sale of securities on the open market

Why is the answer D? and Why not C? coz exchange rate does act as an anti inflationary tool..

 

[mariam_anwar]

Q) In a banking system, all banks maintain 20% of deposits as cash.
One bank receives a new cash deposit of $200. Subsequent net withdrawals of cash from the
banking system are zero.
What will be the resulting increase in bank loans and the total increase in bank deposits?
increase in bank loans total increase in deposits
A $160 $200
B $160 $360
C $800 $1000
D $1000 $1000

 

[Bint]

Why is the answer D? and Why not C? coz exchange rate does act as an anti inflationary tool..

Qamar Baloch 2pac

 

[mariam_anwar]

sir you are helping alot ! high appreciable may you get reward for this AMEEN

Inshaa Allah ! Sir will surely get reward !!
Aaameen

 

[Qamar Baloch]

hi i have a few questions here!

o/n/06 :
no 2, no 4, no30.

anyone pls help me tq!

http://www.xtremepapers.com/communi...8/?temp_hash=a60d824a47a2ea8559d974fb02e0c930

 

[2pac]

Qamar Baloch 2pac

I am sorry but I have no idea myself.Please do let me know as well when you get to know the correct reason why.

 

[Qamar Baloch]

Please help me with this ques .....
In a closed economy, the full employment level of income is $200 million.
C =
4
3
Y,
I = $(50 – 5r) million,
where C = consumption,
Y = income,
I = investment,
r = the rate of interest.
If planned government expenditure is $30 million, what rate of interest would be required for there
to be full employment?
A 2% per annum
B 4% per annum
C 6% per annum
D 8% per annum

http://www.xtremepapers.com/communi...9/?temp_hash=304e4db6c972c4a28c04ba57be7b44b2

 

[patricia8686]

what about o/n/06 :
no 4, no30.

anyone pls help me tq!

 

[Qamar Baloch]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s09_qp_3.pdf

Q11 ?
Aren't all firms' LRAC curve the same irrespective of their market structure?

11C Steeper demand curve is found in monopoly and oligopoly. As it is industry demand curve so it shows that there are more than one firms in the market. It shows an oligopoly market structure. Where as in monopoly there is only single seller in the market and firm in itself is an industry. So, we need not to show industry demand curve in case of monopoly. It is not the matter of AC. ok.

 

[Qamar Baloch]

Q) In a banking system, all banks maintain 20% of deposits as cash.
One bank receives a new cash deposit of $200. Subsequent net withdrawals of cash from the
banking system are zero.
What will be the resulting increase in bank loans and the total increase in bank deposits?
increase in bank loans total increase in deposits
A $160 $200
B $160 $360
C $800 $1000
D $1000 $1000

answer is already available. see a page back.

 

[mariam_anwar]

http://www.xtremepapers.com/communi...9/?temp_hash=304e4db6c972c4a28c04ba57be7b44b2

Wow Sir !! yeh tou mainey socha he nai