peopleeeeeeeeeeeeeeeeee-eco paper 3

[nid404]

yes u need to and its very similar to the impacts of growth.

[Name]

ight..dat helped Thanks, life saver!
ohh n wht are fixed and variable costz??

Fixed costs: costs that do not change when output changes. so if you produce 0 units u pay and if you produce 50 units u still pay them. for example heat, light, renting land,...

Variable costs: costs which DO change when output changes. so if you produce 0 units, you dont pay them. but if you produce anything, you pay.for example raw materials, wages of workers, .....

Graph showing an example of fixed and variable costs:

http://www.businessteacher.org.uk/wp-content/break-even-analysis.jpg

Thank you for posting up the powerpoints! 

Question- are we supposed to know about the impacts of globalisation?

(:

um its not on the syllabus and we never took it in class, but i guess you just have to know briefly what it is. in economics, you cant limit how much you should know, because the more you know the easier the exam will be!

your choice 

[nid404]

globalisation is not a new term. It is similar to growth so u could expect questions in the case study paper. It's simple logic anyways

[ni]

Okay thank you, got it. Yeah I've answered questions on globalisation in past papers in class, but I was just wondering if we were meant to learn it up as a specific unit or something. But I guess not!

Thank you (:

[aquarian93]

hey  can i pleaseee hav a powerpoint on TRADE and MONEY AND BANKING, ill be rlly grateful! thank you!

[nid404]

i can help u with trade and balance of payments. ive attached the ppt

[Coco]

eeey
was wondering if anyone could tell me the advantages and disadvantages of specialisation at national and reginol level??

[nid404]

http://tutor2u.net/revision_notes_economics_gcse.asp

i hope the site helps u

[Name]

hey  can i pleaseee hav a powerpoint on TRADE and MONEY AND BANKING, ill be rlly grateful! thank you!

hey, i hope this helps :

Money
The functions of money:
•   As a medium of exchange:
Because money is acceptable in exchange for all if the goods?we don’t face the difficulty of bartering

•   As a measure of value   
All goods can be expressed in terms of one single commodity called ‘money’

•   As a store of value
Money is a much better convenient store of value than chicken, pencils…it holds its value better than most other commodities although inflation causes it to lose value over time

•   As a means of deferring payment
Convenient way if measuring how much people owe other people.  A barter economy would find this difficult. E.g. Apples: big or small? Fresh?

•   Money is divisible
Can easily be divided into smaller units.  $1 = 100 cents

‘Good’ money is:
•   generally acceptable by society
•   durable (hard wearing, can be used over and over again)
•   portable (easy to carry around)
•   divisible (to determine prices for low value goods)
•   scarce (if it is not scarce then it has no value)

In specialisation societies, the surplus is traded for the goods we have chosen NOT to specialise in.  Money enables a rate of exchange (price) to be set so that trade can take place?enables us to benefit from specialisation

Central Banks
•   The bank to the government of an economy and the banker’s bank
E.g. Bank of England, Fed, European Central Bank
•   Responsibility for issuing the notes and coins of their currency
•   Manages the gold and foreign currency reserves of an economy
•   Manages the national debt of an economy
•   It regulates and supervises the banking system
•   It is ‘lender of the last resort’ to the banking system (the retail banks often need to borrow from the Cbanks)
•   It sets the main official interest rate in the economy

Governments usually have complete control over Cbanks but more and more countries have made Cbanks independent of the government.  E.g.: Bank of Mexico, England, Japan, the Reserve Bank of India, etc.

Commercial (Retail) Banks
•   Provide a ‘link’ between these willing to save money and those wishing to borrow money
•   Somewhere safe to store money
•   Provides convenient methods of payment (debit/credit cards, cheque books, internet, etc.)
•   Financial and tax planning advice
•   Provides insurance
•   Buying and selling shares for their customers

hope i helped

do you also want something about the stock exchange?

[aquarian93]

thanks Name! that helped, especially the bank stuff! yea sure, would appreciate smthng on stock exchange! (by that u mean shares n stuff rite?)
and wts this +rep ppl keep toking abt? im new to this forum so yea

[Name]

The Stock Exchange

The stock exchange: a market where sellers and buyers of financial instruments come together

- Financial instruments: shares, debentures, government bonds
- Because it is a market, equilibrium/market prices will be established
- Public limited companies issue new shares and/r debentures to raise finance (e.g. for expansion/purchase of fixed assets)
- Governments issue new bonds when they need to borrow money to finance their spending plans (not all government spending comes from taxation. E.g. raising taxation levels during a recession would be very unwise)
- These shares, debentures and government bonds can be bought and sold over and over again second hand on the stock exchange)

Why people buy shares/debentures and government bonds:
•   For a ‘return’ which provides an annual income
       o   Shares can generate dividends out of profits
       o   Government bonds generate a fixed interest on the face value of a bond
       o   Debentures generate a fixed interest on the free value of the debenture
•   To make a profit from the buying and selling of the share/debenture/bond itself

i dont actually understand the stock exchange that much :S very complicated

and rep i think thats REPutation. you + someone if they post something good/helpful and u - someone if theyre a pain in the a**

[aquarian93]

thankss
and that's a + for u! lol

[aquarian93]

and guys i hav a doubt wid this:

Analyze the different motives for spending, saving and borrowing

Discuss how and why different income groups have different expenditure patterns (spending, saving, borrowing)

thanks!

[aquarian93]

guys its in the syllabus so i need ur help!

[nid404]

Spending or saving depends on
-Tax rates
-Income
-Wealth
-Inflation rates
-Personal interests
-Exchange rates(banks)

In diff income groups

High income group spends higher proportion of their income on luxurious goods whereas low income groups spend a higher proportion of their income on basic necessities.

this is all you need