Qualification > Commerce

ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!

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Freaked12:

--- Quote from: aangel42 on June 10, 2010, 04:29:09 pm ---oh i thought the water thing was obvious, so i picked C cuz i thought they wanted another natural resource example... i lose so many marks for stupid mistakes :(

anyway thanks!
(By the way, how many past papers have you done?)

--- End quote ---

try to minimize your mistakes to atleast 4 or 5
and you are set for a A star iA

BlackBunny103:

--- Quote from: Ari Ben Canaan on June 10, 2010, 04:32:24 pm ---I've done all ;)

--- End quote ---

WOW Ben seriously? You've done all MCQ from 2002 up till now, including MJ & ON? OMG

Anyways, can anyone please explain to me what is meant by this "US dollars will be dearer in terms of UK pounds." I don't understand what does dearer in this case means. And for this question, I put B but the answer is D.
Thanxx

Freaked12:

--- Quote from: BlackBunny103 on June 10, 2010, 04:37:44 pm ---WOW Ben seriously? You've done all MCQ from 2002 up till now, including MJ & ON? OMG

Anyways, can anyone please explain to me what is meant by this "US dollars will be dearer in terms of UK pounds." I don't understand what does dearer in this case means. And for this question, I put B but the answer is D.
Thanxx

--- End quote ---


when it says it depreciates against the US dollar,it means US dollar is becoming expensive

Freaked12:

--- Quote from: BlackBunny103 on June 10, 2010, 04:37:44 pm ---WOW Ben seriously? You've done all MCQ from 2002 up till now, including MJ & ON? OMG

Anyways, can anyone please explain to me what is meant by this "US dollars will be dearer in terms of UK pounds." I don't understand what does dearer in this case means. And for this question, I put B but the answer is D.
Thanxx

--- End quote ---

B is impossible
How could Imports of UK be getting more expensive when its depreciating against US dollar

elemis:

--- Quote from: BlackBunny103 on June 10, 2010, 04:37:44 pm ---WOW Ben seriously? You've done all MCQ from 2002 up till now, including MJ & ON? OMG

Anyways, can anyone please explain to me what is meant by this "US dollars will be dearer in terms of UK pounds." I don't understand what does dearer in this case means. And for this question, I put B but the answer is D.
Thanxx

--- End quote ---

Dearer means more expensive.  As a currency depreciates imports become more EXPENSIVE and exports CHEAPER.  MEMORISE THIS !!!

Because of the above rule it cant be either A or B.

With a depreciation in currency An American needs to spend LESS to get 1 pound then compared to before.

He WOULD have had to spend $1.8 to get 1 pound. Now he needs to spend  $0.30 LESS.

A Britisher needs can only hope to purchase $1.50 compared to $1.80. A britisher needs to SPEND MORE to get the same value in American Currency than before.

Got it ?

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