ECO PAPER 1

[aquarian93]

guys hw abt for the "credit" question? he's keen to pay it off, bt spends more instead.
i said, the prices of essential goods increased. hw abt u guys?

Yeah some of my friends said that too!
I said that his weekly earnings would have increased though...=/

yea even i thoght that, but he was keen to repay it rite, so if he got an increase, it would be an even better opportunity for him to repay it, and get rid of it. but if the prices of "essential" goods increased, like food, he would hav no choice. jus my opinion k

[therealhyebyekadal]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

[therealhyebyekadal]

But  its ok because by the looks of it I got everything else correct( Comparing the answers with you guys!)

[ni]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

For that question you were basically deriving the answer from C + I+ G+ (X-M)
And it was a closed economy so we can then eliminate (two X-M) from the equation. They'd mentioned the other ones so only government expenditure if left.

Sorry if people have already said this before, I'm just explaining.

Even I got one wrong; i'm not sure if its the only one though. It's the one about the person who is keen to pay back etc...

[therealhyebyekadal]

i still think its the other one but its ok its too late anyway@!!!
lol i screwed up in physics big time!!!!
anyway lets all just forget about htis since we can worry after we get our results
though  i think well still do ok..)

[CrEaTuRe_X]

sorry to dissappoint you but the question about the GDP was total goverment expenditure,because GDP=consumption+investments+exports+goverment expenditure,and since it was a closed economy so no exports,the only total goverment expenditure left

Oh, really? I read the questions 4-5 times, didnt see any thing about closed economy at all... Think I screwed that up than.

[thukon]

I think the GDP one is government spending.

[CrEaTuRe_X]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

It doesnt need to be, Examiner *censored* was just testing our theoretical knowledge, weather we knew what closed economy is, I didnt even read the question, about the person who is willing to pay back the debt, It is higher salary, If the price of the goods increase, say chocolates or chips, (because it never said anything about ESSENTIAL goods, we take it as general price increase), he will spend less, the only logical answer is Higher salary, as more money means he has more disposable income to spend.

[aquarian93]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

It doesnt need to be, Examiner *censored* was just testing our theoretical knowledge, weather we knew what closed economy is, I didnt even read the question, about the person who is willing to pay back the debt, It is higher salary, If the price of the goods increase, say chocolates or chips, (because it never said anything about ESSENTIAL goods, we take it as general price increase), he will spend less, the only logical answer is Higher salary, as more money means he has more disposable income to spend.

im sure it said ESSENTIAL goods

[CrEaTuRe_X]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

It doesnt need to be, Examiner *censored* was just testing our theoretical knowledge, weather we knew what closed economy is, I didnt even read the question, about the person who is willing to pay back the debt, It is higher salary, If the price of the goods increase, say chocolates or chips, (because it never said anything about ESSENTIAL goods, we take it as general price increase), he will spend less, the only logical answer is Higher salary, as more money means he has more disposable income to spend.

im sure it said ESSENTIAL goods

haha, ok if it makes you sleep better at night, it did.

[aquarian93]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

It doesnt need to be, Examiner *censored* was just testing our theoretical knowledge, weather we knew what closed economy is, I didnt even read the question, about the person who is willing to pay back the debt, It is higher salary, If the price of the goods increase, say chocolates or chips, (because it never said anything about ESSENTIAL goods, we take it as general price increase), he will spend less, the only logical answer is Higher salary, as more money means he has more disposable income to spend.

im sure it said ESSENTIAL goods

haha, ok if it makes you sleep better at night, it did.

omg, pls dont take it in a negative way okie, im jus saying i thoght it sed dat. no worries good luck for results!

[ashisonline]

AHHHHHHHHH, I GOT 3 PTS OFF, BUH OH WELL. :/


lol.

[ni]

to all those people saying tht its puble expenditure then why did the question say
gross investment??? shouldnt it include the public expenditure also>/
atleast part of it.
and in real life u cant have NO exports thats not very convincing .

Haha guys it's okay; even I said higher salary but I can see where the essential goods people are coming from. It did say essential goods though...it's just that the higher salary was the first thing that popped to my mind when I read the question
Oh well.
Fingers crossed.

It doesnt need to be, Examiner *censored* was just testing our theoretical knowledge, weather we knew what closed economy is, I didnt even read the question, about the person who is willing to pay back the debt, It is higher salary, If the price of the goods increase, say chocolates or chips, (because it never said anything about ESSENTIAL goods, we take it as general price increase), he will spend less, the only logical answer is Higher salary, as more money means he has more disposable income to spend.

im sure it said ESSENTIAL goods

haha, ok if it makes you sleep better at night, it did.

omg, pls dont take it in a negative way okie, im jus saying i thoght it sed dat. no worries good luck for results!

[aquarian93]

hehe yea

[aquarian93]

bt guys, how cum very few ppl are discussing this time, its so empty