Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
someone:
--- Quote from: aangel42 on June 08, 2010, 01:45:24 pm ---Yeah, microeconomic aims do exist, past examiner reports keep mentioning them, I just can't figure out what they are????
Like, make sure people are happy, earning what they're capable of, get the best value for money, stuff like that?
--- End quote ---
u mean increase standard of living and GDP per head? that's also connected to macroeconomic aims right?
increase employment, econ. growth will increase GDP per head
lower inflation increase the real income value of the ppl
increase employment, growth, and lower inflation will increase spending power of ppl which lead to better living standard
Freaked12:
Microeconomics (from Greek prefix micro- meaning "small" + "economics") is a branch of economics that studies how the individual parts of the economy, the household and the firms, make decisions to allocate limited resources,typically in markets where goods or services are being bought and sold. Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.
One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Microeconomics analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.
someone:
--- Quote from: aangel42 on June 08, 2010, 01:55:10 pm ---"Candidates must be able to recognise the differences between possible macro and micro economic aims of a government."
--direct quote from O/N 2009 Examiner Report for question 5b) shown on page 5/8 of the Report.
It is also mentioned briefly in the M/J 2009 Examiner Report for question 1c) where it says: "Some candidates decided to select micro-economic rather than macro-economic aims."
--- End quote ---
does the question asks for the macroeconomic aims?
Freaked12:
--- Quote from: aangel42 on June 08, 2010, 02:01:40 pm ---Explain what is meant by price elasticity of demand, someone, for 4 marks?
Please and thanks!!! :)
--- End quote ---
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (holding constant all the other determinants of demand, such as income).
rice elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to ambiguity. Only goods which do not conform to the law of demand, such as Veblen and Giffen goods, have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is, changes in price have a relatively large effect on the quantity of a good demanded.
Revenue is maximised when price is set so that the PED is exactly one. The PED of a good can also be used to predict the incidence (or "burden") of a tax on that good. Various research methods are used to determine price elasticity, including test markets, analysis of historical sales data and conjoint analysis.
J.Darren:
--- Quote from: aangel42 on June 08, 2010, 02:01:40 pm ---Explain what is meant by price elasticity of demand, someone, for 4 marks?
Please and thanks!!! :)
--- End quote ---
PEd = responsivness of change in quantity demanded towards a change in price.
% change in QD / % change in price
The factors that affects the PEd are :
- Proportion of a person's income (necessities, luxury)
- Number of subsitutes (Few subsitutes - inelastic)
- Addictivness (cigarattes)
- The period of time (Longer more elastic)
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version