Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
anuj_j1993:
Help me please
Whats the answer for Q.36 of paper 3 may/june 2007?
I have the mark scheme but i have a doubt. I think it should be A
Please reply
hmh:
--- Quote from: anuj_j1993 on June 10, 2009, 10:49:57 pm ---Help me please
Whats the answer for Q.36 of paper 3 may/june 2007?
I have the mark scheme but i have a doubt. I think it should be A
Please reply
--- End quote ---
Reduction of quota means high quota = 23,000 goods allowed, low quota = 10,000 goods allowed.. so now less can be imported. Thats the answer... and why not others.. tax is abt tariff not quota so cant be tht.., as theres no tax mentioned so means no gov. revenue wil decline.. the balance of trade will be better as less imported now.
ni:
How much do you guys usually get on multichoice? Out of 40? :)
aquarian93:
my doubts from may 2003
no 9,14, 25, and 23.
thank you sooo much!
and guys, wts the difference between external and internal economies to scale?
and if employment falls, the tax revenue of the govt falls rite. bt does their expenditure fall as well? i mean wont they increase it to increase aggregate demand and improve the economy?
and wt is diversification in growth of firms?
K_M:
Internal economies of scale is when average costs of the firm falls as the firm grows in size (optimum size). eg Puchasing economies, financial economies etc
External economies of scale is a situation in which growth in an industry causes average total cost for the individual firm to fall as a result of some factor external to the firm. It corresponds to a downward-sloping long-run industry supply curve.
If employment falls, govt revenue falls as they receive less from taxation and their expenditure rises as they have to pay unemployment benefits.
Diversification is when the firm sells other products apart from its main selling product. eg if a company was set up to sell bottled water, they also sell juices, milk etc
Hope that helped! All the best! =)
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