Qualification > Commerce

economics multiple choice!!

<< < (3/6) > >>

~cornelia~:
@lastgift- merci and arigato!! (thank u)
 u have been a great help! :D
 i bet ur tired of my question but i have two more :P
may/june 2007 p1
ques 7 and 9?

@monoploy-
thank you for your help,
could u ,more clearly, plz explain what legal tender is?

lastgift:
Cornelia, thanks for making me revise Economics  :D


* The interest elasticity of demand of loans is like any other elasticity.
Formula= %age change in qty demanded/ %age change in interest
Change in qty demanded of loans is (4000-5000)/5000= -0.2
Change in interest= (10-8)/8= 0.25
Therefore, elasticity= -0.2/0.25= -0.8 which is option C.


I tried 9th, it came out to be wrong. Maybe Monopoly can again share the work load :P

Monopoly:
legal tender: it is defined as the form of money that must be accepted in settlement of debt by law. It consists of all notes and coins.

another form is the near money which consists of financial assets. Mainly near money are used as a store of value rather than medium of exchange.

Q9) I'll just do the calculation for 1200cc as it is same for 2000cc
now XED = %change in D of car/%change in P of petrol
since the XED is negative, A and B are invalid (a rise in petrol price will cause a fall in demand and hence sales of car)

now %change in D of car = [(10000 - x)/10000] * 100 where x is the new number of car sold/demanded after rise in price of petrol

XED = 0.25 (ignoring the -ve sign as it)
[(10000 - x)/100]/100 = 0.25
solve for x = 7500

decrease in car demand = 10000-7500 = 2500

calculate urself and you will find also a decrease of 2500 for 2000cc cars

hence total fall in demand is 5000

~cornelia~:
thanks a lot both of you!!

lastgift, ur welcome :P
dont worry i will be here all year making you revise! :P
are you doing AS level econ??

monopoly and lastgift,
can you do two more questions from the same year?
ques 4 and 11
thank you :D

Dasith:

--- Quote from: ~cornelia~ on November 01, 2011, 02:56:24 pm ---thanks a lot both of you!!

lastgift, ur welcome :P
dont worry i will be here all year making you revise! :P
are you doing AS level econ??

monopoly and lastgift,
can you do two more questions from the same year?
ques 4 and 11
thank you :D

--- End quote ---

4
1kG beef = 3kg lamb

1kG beef Price = 2 x lamb price

so as u see He gives up 1 kg beef to produce 3 kg lamb & vice versa
if he gives up lamb production he gains 2 x lamb price(for 3 lamb given up) , but however if he decides to produce lamb he gets 3 x lamb price for (1kg beef given up which equals to 3 lamb units) .

He has a better advantage in producing lamb than beef

11)

well if supply of y is increased, price of y would reduce & therefore since the goods are complements(goods used together) the demand for X would increase ,which would raise both price & quantity demanded of good X

Navigation

[0] Message Index

[#] Next page

[*] Previous page