economics mcqs

[Freaked12]

i need help in the following questions :
june 09---26,30
june 08---15,23
nov 06 ---8,26
june 06---19
nov 05 ---25
nov  04---8
june 04---25
nov  03---22
june 03---19

November 05
You have to look at the price index simple
because that shows the rate of inflation over a period of time which was country B.

if you looked at the money supply which also causes inflation then there are no choices because every country's supply is increasing
which then leaves us with price index

[Freaked12]

i need help in the following questions :
june 09---26,30
june 08---15,23
nov 06 ---8,26
june 06---19
nov 05 ---25
nov  04---8
june 04---25
nov  03---22
june 03---19

November 06
Its clear C
because when it says inferior income elasticity could only be negative
 so it leaves is with A and C
When it says complement,Cross elasticity should also be in Negative so answer is C

[Freaked12]

i need help in the following questions :
june 09---26,30
june 08---15,23
nov 06 ---8,26
june 06---19
nov 05 ---25
nov  04---8
june 04---25
nov  03---22
june 03---19

November 06 26-
Causes of Cost push inflation are only
rise in wages through any method like increase in trade union power etc and depreciation in Curreny account.

Supply of money is all together another cause of inflation and not related to cost push

[zxcvbnm]

ok thanks!

[Flip]

Can somebody help me out with the following MCQ questions for CIE AS Economics Paper 1?

May/June 2006 - 4 & 27
October/November 2006 - 26 & 27
May/June 2007 - 29

Thank you in advance.

[Freaked12]

i need help in the following questions :
june 09---26,30
june 08---15,23
nov 06 ---8,26
june 06---19
nov 05 ---25
nov  04---8
june 04---25
nov  03---22
june 03---19

June 09
26=Break down this question into parts
Inelastic demand means whatever the price the demand will change slowly
Then it says countries decide to increase supply
shifting the supply curve which decreases the price.So inflation will be less likely
Price decreases and demand stays the same so balance of trade improves because it takes into account the expenditure.
When price decreases,demand increases as well
so answer is A

30-if you know the marshal learner condition you would be able to answer this.

It states then when price of imports rise(due to devaluation) and if it is price elastic in nature then imports will decline as demand is more elastic in nature

[zxcvbnm]

thankyou so much for your help!

[Freaked12]

June 09
26=Break down this question into parts
Inelastic demand means whatever the price the demand will change slowly
Then it says countries decide to increase supply
shifting the supply curve which decreases the price.So inflation will be less likely
Price decreases and demand increases but only slightly so balance of trade improves because it takes into account the expenditure.
When price decreases,demand increases as wellso answer is A

30-if you know the marshal learner condition you would be able to answer this.

It states then when price of imports rise(due to devaluation) and if it is price elastic in nature then imports will decline as demand is more elastic in nature

[zxcvbnm]

please explain purchasing power parity theory!

[Freaked12]

please explain purchasing power parity theory!

According to wiki
In its "absolute" version, the purchasing power of different currencies is equalized for a given basket of goods. In the "relative" version, the difference in the rate of change in prices at home and abroad - the difference in the inflation rates - is equal to the percentage depreciation or appreciation of the exchange rate.

The PPP exchange-rate calculation is controversial because of the difficulties of finding comparable baskets of goods to compare purchasing power across countries.

Estimation of purchasing power parity is complicated by the fact that countries do not simply differ in a uniform price level; rather, the difference in food prices may be greater than the difference in housing prices, while also less than the difference in entertainment prices. People in different countries typically consume different baskets of goods. It is necessary to compare the cost of baskets of goods and services using a price index. This is a difficult task because purchasing patterns and even the goods available to purchase differ across countries. Thus, it is necessary to make adjustments for differences in the quality of goods and services. Additional statistical difficulties arise with multilateral comparisons when (as is usually the case) more than two countries are to be compared.

[Flip]

Can somebody help me out with the following MCQ questions for CIE AS Economics Paper 1?

May/June 2006 - 4 & 27
October/November 2006 - 26 & 27
May/June 2007 - 29

Thank you in advance.

Could someone kindly explain these questions please?

[Freaked12]

Could someone kindly explain these questions please?

May /June 2006
Question 4)
A this lowers cost of transporting goods and raw materials, therefore it is worth while to specialise in Production.

27-D Inflation falls because imports are cheaper and demand for local goods fall.Currency falls because there is less demand for exports and more demand for imports

[Freaked12]

Could someone kindly explain these questions please?

October November 06
26-B
Supply of money is cause of inflation but not related to cost push.
27-Balance of payment is in deficit because of three reasons
Imports exceed exports
Exports just increase imports but financial account is in deficit
and
Current account has a large surplus
so answer is B

29-B A depreciation of sterling will make imports dearer hence it is a source of inflation

[MAF]

could you do m/j 02 Q28? and oct/nov 02 q26? howd we do them?
and their the same concept but give different answers....

[Freaked12]

could you do m/j 02 Q28? and oct/nov 02 q26? howd we do them?
and their the same concept but give different answers....

M/j
28-A
this causes the demand for money to rise,interest rate rises because money supply is constant

can u post november question here
i dont have it