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eco paper 3 !!!

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Dasith:

--- Quote from: Monopoly on June 09, 2011, 10:58:52 am ---work out the TR(no of workers*APP), then MR (differences between TR) and finally MRP of labour. Since it is perfect competition, firms employ up to wage = MRP
q11: essential and most important condition of contestable market is that there are low barriers to entry and exit

q20: export is an injection(J), so fall in X has to be offset by rise in J or fall in leakage(W). Hence A but not D because fall in tax rises disposable income, the full rise is not spend here but only part. the rest is removed hence resulting in a smaller multiplier

--- End quote ---

dude u explained the wronq questions for 11 & 20 i think ? :O

11)
in perfect compition firms are price takers , if they try to make prices they end up making losses , so price wont change, IF marginal cost > MR  it means they are not making profite i.e normal profit , so they reduce quantity back to place where MC=MR (this is also the equilibrum in perfect competion)

20)
ok the Deflationary gap is 4 , which is due to lack of investments,

when investment increases by 4 income rises by 20

4 + increase in consumption = 20

consumption increase = 20-4
then consumtion =16


marginal propensity to consume is the change in consuption to changge in income
change in income = 20
& the consumtion change u got 16

16/20 = 4/5 = 0.8

Dasith:

--- Quote from: Monopoly on June 09, 2011, 10:52:42 am ---poverty trap for an individual occurs when an individual is worse off from a rise in income as result of withdrawal of benefits and imposing of tax (higher).
from the defination, C is the ans.

Hey can u help me with Q15 for this paper

--- End quote ---

production targeting , because its atomatically decided by market forces than firm , all firms produce the maximum they can , to earn the highest , that is they produce untill MC= MR , no need of target production !

***exam***:
thanks a lotttttttttt guys !! :D :D
i wonder how do you all understand numerical  esp the consumption, investment ,multiplier !! it always goes right above my head ! :P :P

if ya'll have tim e! just one two more questions !!

oct/nov 2008
Q16 !!  answer b
q2 !! what is parento efficiency ??
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w08_qp_3.pdf

Dasith:
sorry didnt see this untill now :O ,
iguess u've done u r paper by now !

hw was it ?

***exam***:
haha yeah done ;D ;D !! by the way !! thanks 4 all the help :D :D

paper was k !! but not as good as expected !! 
how about u ?

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