Economics

[krtcobain82]

Guys I need (answers+explanations) for the question of
1) P1 may/jun 2005, Q 19
2) P1 may/jun 2006, Q 27

[***exam***]

hey cie edexcel ?
could u put up the questions ! ?

[krtcobain82]

It's CIE AS level

http://www.xtremepapers.me/CIE/index.php?dir=International%20A%20And%20AS%20Level/9708%20-%20Economics/&file=9708_s05_qp_1.pdf

Question is related to comparative advantage.

http://www.xtremepapers.me/CIE/index.php?dir=International%20A%20And%20AS%20Level/9708%20-%20Economics/&file=9708_s06_qp_1.pdf

Question is related to BOP and exchange rate.

[***exam***]

for the first 1 the ans is A Fantasia is likely to have a comparative advantage in X  . as per the comparison advantage theory each country can specialise in different products which will be followed by trading those products with other country ! in fantasia there is scarcity of labour but nothing is specifically told about land  so may be they have better resources of land  so option b , c and d are a strict no cuz v cant leave a gap for benefit of doubt



2nd 1 nas is D decrease inflation     depreciate exchange rate  ! its so because an increase in international competition may lead to less of exports in the country ie less inflow of money this will decrease the inflation cuz low demand ! now the country will have less of foreign currency reserve n more of domestic currency will be flowing out  this will cause depreciation of the currency !

hope u get it 

[Dasith]

Dude i dont think your ans is perfectly correct;

*ans for question 27 is since there is increased competition ,(international competition) import prices are much lower,i.e low inflation in other words inflation decrease as consumers enjoy lesser prices with increased international competition.& there is a depreciation in exchange rate becouse consumers spend /demand more of cheaper imports.

[***exam***]

Dude i dont think your ans is perfectly correct;

*ans for question 27 is since there is increased competition ,(international competition) import prices are much lower,i.e low inflation in other words inflation decrease as consumers enjoy lesser prices with increased international competition.& there is a depreciation in exchange rate becouse consumers spend /demand more of cheaper imports.

oh Thanks 4 the explanation ! i think i wanted to say the same thing but different words ! or way of seeing things