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A2 ECONOMICS: Guess Paper-4
- Thread starter Qamar Baloch
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Sir please post ALL the questions too! Thankyou!
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can you pl
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can yyou pls send it to me as well?! Thanks love!my complete answer for question 5... if anyone want it... its a level 4 essay though...
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page 2:
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page 5:
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ANSWER TO Q.3
7. Standard of living refers to the level of happiness among the people. It is measured through different approaches. National income can be used to measure standard of living at a point in time, over a period of time and to compare between countries. Standard of living shows the level of happiness among the people. Most of the time national income figure is used to indicate standard of living. When income level is higher, it is considered that standard of living will be high. On the other hand, low income shows low standard of living because people cannot enjoy good quality product in large quantities with low income.
But in reality even though income may have increased but it does not show a better standard of living. People would enjoy good standard of living if they have different durable qualitative goods and services as well as have leisure hours for recreation. However, to conclude it accurately we need to consider some factors which are explained as under. In most of the developing countries national income is not calculated correctly due to low literacy rate, lack of data, and lack of sophisticated machinery etc. So, we cannot say that high income will show higher standard of living in such state of affairs.
Sometimes, rise in income is caused by rise in population. So, the extra income earned will be absorbed by the extra population. So, it will again make it very difficult to conclude about standard of living. Rise in rate of inflation reduces the purchasing power of people. So, rise in income will not be able to buy more goods and services to enjoy a better standard of living. Uneven distribution and disparities will prevent to improve standard of living because it shows that a few rich people have higher income and poor will get poorer. So, they not be well–off to enjoy good standard of living.
If rise in national income is caused by rise in production of capital goods and production of consumer goods has decreased then standard of living cannot improve. More quantity but low quality will worsen the well being of the people. Rise in income due to rise in working hours and fall in leisure time will lead to lower standard of living. More availability of facilities like education and health care will improve standard of living even national income is low, vice versa is true for non availability of these facilities.
Increased national income due to rise in government expenditures will set–off the net effect and standard of living will not improve. Rise in direct tax decreases the disposable income which is available for spending. In this way people cannot spend more for better standard of living.
Rise in income with rise in negative externalities will make the living standard worse off. It means national income statistics is not a very useful measure to indicate change in standard of living.
So, we should evaluate standard of living through alternative measures like Human Development Index (HDI), Measure Economic Welfare (MEW) and Net Economic Welfare (NEW).
The figure of real GDP per capita may be misleading, misrepresenting and miscalculated. So, it is not the full and final indicator of living standard.
To compare living standard between the countries we should convert the real GDP per capita of all these countries into some common currency. This is necessary to remove the distorted effect of different exchange rates in different countries. It will also be helpful to find out the purchasing power parity of the citizens in each country.
If we are not doing so, then it would not be possible to evaluate and compare the standard of living between countries.
For example real GDP per capita inUK is lower than that ofPakistan but if we convert it into common country then the situation might be quite opposite.
Similarly, if the real GDP per head of a country might be high but there is the element of disparities i.e. there is a wider income gap between rich and the poor. However, on the other hand GDP per head of a country may be low but there is more even distribution of income than later may indicate better living standard than the former. Some times real GDP per capita rises because of increase in working hours of the individuals. Then it may further depress the standard of living.
However, having more leisure hours accompanied by higher real GDP per hand is an indication for better standard of living.
For example if the people inUK are earning more as compared to that ofUSA. But working hours inUK are much more thanUSA. Then we can not say that the population ofUK is enjoying better standard of living.
Difference of population change should also be taken into account to reach the conclusion. A high birth and death rate affects the standard of living adversely.
The citizens of a country who are enjoying more positive externalities have better standard of living than the country where there is plenty of negative externalities like polluted environment.
Similarly, if the population of a country is facing social threats like terrorist activities, robbery and job insecurity than their standard of living will be lower than that of a country having peaceful and safe environment.
Culture and needs of every country are also different from each other. So national income statistics cannot clearly show and compare standard of living between countries.
Rather we should consider other measures to evaluate standards of living of different countries like Measurable Economic Welfare (MEW) and Human Development Index (HDI).
Measurable Economic Welfare seeks to give a complete and true picture of standard of living by taking into account not only real GDP per capita but also other factors as well which affect the quality of life e.g. crime rate and pollution as well as inflation and population changes etc.
Similarly, Human Development Index (HDI) is a good measure to evaluate standard of living. It takes into account real GDP per capita (to show purchasing power parity PPP), life expectancy at birth and literacy rate and primary, secondary and tertiary environment ratio.
It does not take into account only the real income per head but also their life with good health and higher literacy rate.
7. Standard of living refers to the level of happiness among the people. It is measured through different approaches. National income can be used to measure standard of living at a point in time, over a period of time and to compare between countries. Standard of living shows the level of happiness among the people. Most of the time national income figure is used to indicate standard of living. When income level is higher, it is considered that standard of living will be high. On the other hand, low income shows low standard of living because people cannot enjoy good quality product in large quantities with low income.
But in reality even though income may have increased but it does not show a better standard of living. People would enjoy good standard of living if they have different durable qualitative goods and services as well as have leisure hours for recreation. However, to conclude it accurately we need to consider some factors which are explained as under. In most of the developing countries national income is not calculated correctly due to low literacy rate, lack of data, and lack of sophisticated machinery etc. So, we cannot say that high income will show higher standard of living in such state of affairs.
Sometimes, rise in income is caused by rise in population. So, the extra income earned will be absorbed by the extra population. So, it will again make it very difficult to conclude about standard of living. Rise in rate of inflation reduces the purchasing power of people. So, rise in income will not be able to buy more goods and services to enjoy a better standard of living. Uneven distribution and disparities will prevent to improve standard of living because it shows that a few rich people have higher income and poor will get poorer. So, they not be well–off to enjoy good standard of living.
If rise in national income is caused by rise in production of capital goods and production of consumer goods has decreased then standard of living cannot improve. More quantity but low quality will worsen the well being of the people. Rise in income due to rise in working hours and fall in leisure time will lead to lower standard of living. More availability of facilities like education and health care will improve standard of living even national income is low, vice versa is true for non availability of these facilities.
Increased national income due to rise in government expenditures will set–off the net effect and standard of living will not improve. Rise in direct tax decreases the disposable income which is available for spending. In this way people cannot spend more for better standard of living.
Rise in income with rise in negative externalities will make the living standard worse off. It means national income statistics is not a very useful measure to indicate change in standard of living.
So, we should evaluate standard of living through alternative measures like Human Development Index (HDI), Measure Economic Welfare (MEW) and Net Economic Welfare (NEW).
The figure of real GDP per capita may be misleading, misrepresenting and miscalculated. So, it is not the full and final indicator of living standard.
To compare living standard between the countries we should convert the real GDP per capita of all these countries into some common currency. This is necessary to remove the distorted effect of different exchange rates in different countries. It will also be helpful to find out the purchasing power parity of the citizens in each country.
If we are not doing so, then it would not be possible to evaluate and compare the standard of living between countries.
For example real GDP per capita inUK is lower than that ofPakistan but if we convert it into common country then the situation might be quite opposite.
Similarly, if the real GDP per head of a country might be high but there is the element of disparities i.e. there is a wider income gap between rich and the poor. However, on the other hand GDP per head of a country may be low but there is more even distribution of income than later may indicate better living standard than the former. Some times real GDP per capita rises because of increase in working hours of the individuals. Then it may further depress the standard of living.
However, having more leisure hours accompanied by higher real GDP per hand is an indication for better standard of living.
For example if the people inUK are earning more as compared to that ofUSA. But working hours inUK are much more thanUSA. Then we can not say that the population ofUK is enjoying better standard of living.
Difference of population change should also be taken into account to reach the conclusion. A high birth and death rate affects the standard of living adversely.
The citizens of a country who are enjoying more positive externalities have better standard of living than the country where there is plenty of negative externalities like polluted environment.
Similarly, if the population of a country is facing social threats like terrorist activities, robbery and job insecurity than their standard of living will be lower than that of a country having peaceful and safe environment.
Culture and needs of every country are also different from each other. So national income statistics cannot clearly show and compare standard of living between countries.
Rather we should consider other measures to evaluate standards of living of different countries like Measurable Economic Welfare (MEW) and Human Development Index (HDI).
Measurable Economic Welfare seeks to give a complete and true picture of standard of living by taking into account not only real GDP per capita but also other factors as well which affect the quality of life e.g. crime rate and pollution as well as inflation and population changes etc.
Similarly, Human Development Index (HDI) is a good measure to evaluate standard of living. It takes into account real GDP per capita (to show purchasing power parity PPP), life expectancy at birth and literacy rate and primary, secondary and tertiary environment ratio.
It does not take into account only the real income per head but also their life with good health and higher literacy rate.
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- 1,260
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- Points
- 123
All of you are requested to grasp Q.3 and I will be sending you Q.5 in an hour InshaAllah.
Sir it's already uploaded!
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nice effort. well done
- Messages
- 1,260
- Reaction score
- 676
- Points
- 123
- Messages
- 1,260
- Reaction score
- 676
- Points
- 123
1A
Unemployment is when a job seeker after due search is unable to find a job. Different types of unemployment include; frictional unemployment, seasonal unemployment, technological, structural, cyclical and residual unemployment.
Frictional or transitional unemployment occurs between two jobs when a person leaves one job and tries to search the other one. It may be called search unemployment. For example a film actor after completion of film remains unemployed till the time he gets another contract. Similarly, students doing part time job during studies leave that job when their qualification is completed.
Casual and seasonal unemployment are two other forms of transitional unemployment. Casual unemployment is an explained with the example of film actor above. Seasonal unemployment occurs due to changes in demand of workers during different time of the year. For example jobs in catering, fruit picking, tuitions, tourism, building and farming industries.
Technological unemployment is caused by advancement in technology. It makes many people out of work. Sometimes technology is very quick and firms require a very lesser number of workers to perform the job and is some cases existing workers are not in the position to operate that technology. In many countries in recent years banking staff have lost their jobs due to the introduction of internet and phone banking. It is known as capital–intensive and labour–saving technique.
It may be called regional unemployment if concentration is on some specific area of the country.
Structural unemployment may be caused by changes in law and order or due to changes in structure of the economy. For example in the season of reproduction if government announces that fishing is illegal then all the fishermen will be made unemployed, because of occupational immobility of labour. It may be called regional unemployment as it occurs in some specific area of the country.
Cyclical, demand deficient or disequilibrium unemployment occurs as a result of fall in aggregate demand.
According to fig (38) initially equilibrium in the labour market is at “E” where aggregate demand for labour is “ADL” and aggregate supply of labour is “ASL”. Employment is at “Qo” and wage rate is “Wo”. Fall in aggregate demand has resulted in shifted in ADL to the left and now employment level is “Q1” at the same wage rate “Wo”. So, employment has fallen showing unemployment equal to the gap between Q1 and Qo. This is called cyclical unemployment. It can also be shown with the help of trade cycles as shown in fig. 24. During slump many people lose their jobs. It is also cyclical unemployment.
Many firms employ a certain percentage of employees under this category (quota).
The unemployment mentioned in the statement of question can be structural if it is not short term and temporary. If it is temporary then it might by cyclical. It may also come under the context of seasonal unemployment as the statement does not provide the complete information.
Unemployment is when a job seeker after due search is unable to find a job. Different types of unemployment include; frictional unemployment, seasonal unemployment, technological, structural, cyclical and residual unemployment.
Frictional or transitional unemployment occurs between two jobs when a person leaves one job and tries to search the other one. It may be called search unemployment. For example a film actor after completion of film remains unemployed till the time he gets another contract. Similarly, students doing part time job during studies leave that job when their qualification is completed.
Casual and seasonal unemployment are two other forms of transitional unemployment. Casual unemployment is an explained with the example of film actor above. Seasonal unemployment occurs due to changes in demand of workers during different time of the year. For example jobs in catering, fruit picking, tuitions, tourism, building and farming industries.
Technological unemployment is caused by advancement in technology. It makes many people out of work. Sometimes technology is very quick and firms require a very lesser number of workers to perform the job and is some cases existing workers are not in the position to operate that technology. In many countries in recent years banking staff have lost their jobs due to the introduction of internet and phone banking. It is known as capital–intensive and labour–saving technique.
It may be called regional unemployment if concentration is on some specific area of the country.
Structural unemployment may be caused by changes in law and order or due to changes in structure of the economy. For example in the season of reproduction if government announces that fishing is illegal then all the fishermen will be made unemployed, because of occupational immobility of labour. It may be called regional unemployment as it occurs in some specific area of the country.
Cyclical, demand deficient or disequilibrium unemployment occurs as a result of fall in aggregate demand.
According to fig (38) initially equilibrium in the labour market is at “E” where aggregate demand for labour is “ADL” and aggregate supply of labour is “ASL”. Employment is at “Qo” and wage rate is “Wo”. Fall in aggregate demand has resulted in shifted in ADL to the left and now employment level is “Q1” at the same wage rate “Wo”. So, employment has fallen showing unemployment equal to the gap between Q1 and Qo. This is called cyclical unemployment. It can also be shown with the help of trade cycles as shown in fig. 24. During slump many people lose their jobs. It is also cyclical unemployment.
Figure - 38
Residual unemployment occurs because of physical or mental handicaps (i.e. physically or mentally unfit for the job) can not find job.Many firms employ a certain percentage of employees under this category (quota).
The unemployment mentioned in the statement of question can be structural if it is not short term and temporary. If it is temporary then it might by cyclical. It may also come under the context of seasonal unemployment as the statement does not provide the complete information.
Qamar Baloch: What is developing economies?? how to explain it??
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Explain the following factors.
1. Based on agriculture
2. High birth and death rate
3. Low literacy rate
4. Retired methods of production
5. Less secondary and tertiary sector
6. Less medical facilities
7. High inflation
8. High unemployment rate
9. Child labour
10. High terrorist activities
11. Unfavourable balance of payment
12. Poor exchange rate
13. Number of people per doctor is very high
14. corrupt government
15. Political instability
16. Lower standard of living etc.....................................................................
I think you can do further by yourself.
Is it the same as question 3???
Could someone please send the question paper or answers to [email protected] . Thanks a lot, I'll be forever grateful!
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Hey guys,
My friends just noticed some thick black lines on the sides of some topics in the syllabus. Does that mean anything?! Does that mean that questions are going to come from these chapters in the exam?!
p.s. The syllabus is attached
My friends just noticed some thick black lines on the sides of some topics in the syllabus. Does that mean anything?! Does that mean that questions are going to come from these chapters in the exam?!
p.s. The syllabus is attached
No it doesn't mean anything....because everything is tested every year....they wouldn't just give us a free pass and tell us what's coming!
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