Economics, Accounting & Business: Post your doubts here!

[Muskan Achhpilia]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s10_qp_11.pdf

Can someone explain Q4 pls

Ok so let the money the worker gets for 3hats/2 pairs of shoe be $x,
for 10 hats the worker gets 10/3=$3.33x
for 5 pairs of shoes he gets 5/2=$2.5x
3.33>2.5

Thus the worker should specialise in making hats so answer is C

 

[PY Choi]

Hi can anyone explain how to get the answer to this question

A country's TOT currently stands at 150 with base year 2000 =100
Since 2000, the average price the country has received for ita exports has increased by 20 %.
What has been the change in the average price it has paid for its imports.?

Thankksss

 

[TheZodiac]

Hi can anyone explain how to get the answer to this question

A country's TOT currently stands at 150 with base year 2000 =100
Since 2000, the average price the country has received for ita exports has increased by 20 %.
What has been the change in the average price it has paid for its imports.?

Thankksss

120/x * 100 = 150
x = 80
Means that imports reduced by 20%

 

[AlphaBeta]

how to to this

 

[:: A^]

View attachment 38588
how to to this

Post the year also men -_-

 

[AlphaBeta]

Post the year also men -_-

2002 may june ppr 1

 

[:: A^]

2002 may june ppr 1

what does the mark scheme say?

 

[AlphaBeta]

what does the mark scheme say?

D

 

[:: A^]

Equilibrium price is $2 because all have four clocks!
At $2 X's demand is 2 clocks while Z's demand is 6 clocks.
Because of that, X will sell his 2 clocks and Z will buy 2 clocks.
Thereby answer D.
Examiner report says this:

D

 

[AlphaBeta]

Equilibrium price is $2 because all have four clocks!
At $2 X's demand is 2 clocks while Z's demand is 6 clocks.
Because of that, X will sell his 2 clocks and Z will buy 2 clocks.
Thereby answer D.
Examiner report says this:

how do we know the equilibrium price is $2 because all have four clocks ???
anyway jazakallah

 

[:: A^]

how do we know the equilibrium price is $2 because all have four clocks ???
anyway jazakallah

Because it means that the "supply" of the clocks is only 4 each. Thats how i did :/ not 100% sure!

 

[Muskan Achhpilia]

http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s07_qp_2.pdf

In question 1 a i) can someone please just tell me the ppc's vertical and horizontal axis labels...(I am sort of confused)


Thanks a lot!

 

[TheZodiac]

View attachment 38588
how to to this

This was one of the most interesting question I had come across Let me figure out how to explain it best, wait up.

 

[TheZodiac]

The secret to doing this MCQ is to know that this is the diagram of 'AFTER' the trade off has taken place.
If you observe closely, the equillibrium is $2 as I've highlighted in the diagram.
After the trade off, X has only 2 watches while Z has 6 watches. This means that X sold 2 watches to Z and Z bought 2 watches from X
Therefore answer is D

 

[TheZodiac]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s07_qp_2.pdf

In question 1 a i) can someone please just tell me the ppc's vertical and horizontal axis labels...(I am sort of confused)


Thanks a lot!

Provision of educational and popular television programmes?

 

[Iqra aftab]

Discuss why some governments decide that it is undesirable to leave the provision of private goods such as train travel, to the private sector.
Can you please help me with this this question.
Thanks in advance.

 

[TheZodiac]

Discuss why some governments decide that it is undesirable to leave the provision of private goods such as train travel, to the private sector.
Can you please help me with this this question.
Thanks in advance.

This one's easy.
You could start of by talking about the characteristics of private goods. Rival, exclude-able etc.
Then you could talk about why such private goods such as train travel might not be left to private sector, this could include market exploitation by the monopolist, and private sector focusing on profit maximization rather than working for public interest. You could draw a diagram of negative externality arising from production by private sector and how they seems to ignore the social cost.
Then you can tell how the government would have to intervene into the market and either impose taxes on the producer or nationalize the firm or an industry in order to stop market exploitation.

 

[AlphaBeta]

The secret to doing this MCQ is to know that this is the diagram of 'AFTER' the trade off has taken place.
If you observe closely, the equillibrium is $2 as I've highlighted in the diagram.
After the trade off, X has only 2 watches while Z has 6 watches. This means that X sold 2 watches to Z and Z bought 2 watches from X
Therefore answer is D
View attachment 38616

how is the equilibrium 2 ...each of them have only 4 clocks ..therefore its supposed to be perfectly inelastic supply right?

 

[Muskan Achhpilia]

Provision of educational and popular television programmes?

Oh, so no other commodity on the other axis?

Thanks

 

[TheZodiac]

how is the equilibrium 2 ...each of them have only 4 clocks ..therefore its supposed to be perfectly inelastic supply right?

But they are trading between themselves, they initially have 4 clocks but it doesn't mean that they are reluctant to exchange between themselves. Also, we are currently more interested in the demand rather than supply so we'd assume that each of them would be ready to supply the clock at a given price level. We aren't looking for that because the diagram given is 'after' the exchange has been taken place. To determine the equllibrium price, we've only 3 options, $1 $2 or $3
If we observe $1 then the quantity of X Y and Z isn't equal to 12
X =4
Y =6
Z =9
But at price level $2, the quantity level is equal to 12
X = 2
Y = 4
Z = 6
again at price level $3, the quanitity level isn't equal, that's why $2 is the equillibrium price level.