IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: Tohru Kyo Sohma on May 11, 2011, 01:50:41 am

Title: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 01:50:41 am
can someone help me.....may june 2008 qns 1 a part 2!!!how to calculate?? ;D
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 03:20:22 am
CIE or edexcel?

& which paper??
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 03:33:41 am
k i guess its CIE Paper 2

Ans for part
1 a)
i) is november

now!!

ii)in november month @ begining of month i.e @ 1st november exchange rate was $1= 4300 kwacha
                                                                31st novembe exchange rate was $1=(3300)kwacha
                                                                                         difference is        =1000
as a %:: 1000/4300 * 100% =23.25%
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 09:59:28 am
k i guess its CIE Paper 2

Ans for part
1 a)
i) is november

now!!

ii)in november month @ begining of month i.e @ 1st november exchange rate was $1= 4300 kwacha
                                                                31st novembe exchange rate was $1=(3300)kwacha
                                                                                         difference is        =1000
as a %:: 1000/4300 * 100% =23.25%

thanx alot dasith!!!
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 10:01:27 am
P2 may/june 2007 CIE.....qns 1 a part 1 and b!!! :-[
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 10:09:40 am
wat do u find difficult there ?
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 10:29:08 am
wat do u find difficult there ?
qns 1 a part 1:i dont know how to draw the PPC..the mark scheme also didnt give a clear direction!
qns 1 b:i didnt get the qns as well as the answer
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 10:40:50 am
just , draw a normal PPC which gives a negetive relationship between the two i.e educaional programs
 & comedy programmes . Then explain wat is likely to happen if licence fees in crease , i.e there will be more production of comedy programmes . got it or u need more explanation
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 10:52:09 am
remember if u r showing a shiftt in PPC show with a pivoted shift i.e educational program production stays same while the other increases !
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 11:02:52 am
lol...i got it!! ;D what about the b part?
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 11:08:55 am
4 the other one, as u can see there is no producer surplus, this obviously show that producer is loosing/ gaining nothing, but still producing for 23 million households. consumer surplus is negetive after 17 million but however the net benitfit is higher as u can see in the diagram. Therefore it is possible to say that consumer is getting a higher benifit than they actaully pay for , (there expenditure is  23 x 121, & they recieve benifits of more than that )
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 11:11:13 am
hope u knw wat producer & consumer surplus is ;)
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 11:17:11 am
hope u knw wat producer & consumer surplus is ;)
lol..yes i know wat they mean....thanx a ton dasith ;)
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 11:25:10 am
lol..yes i know wat they mean....thanx a ton dasith ;)

u sure u got it?, because i explained in a hurry O.o
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 11, 2011, 11:33:57 am
u sure u got it?, because i explained in a hurry O.o
[/quote/]
yes i think i got it.!!! :-[
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 11, 2011, 11:36:44 am
GOOd , ;D
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 10:30:10 am
i have another question:
may/june 2009 P21 qns1 c part 1 i got the part that it increased but the markscheme said from under to over 50% or from approx 40% to 60% in total...???how d we calculate the percentage!!
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 11:32:27 am
(a)  With the aid of a diagram, explain why an economy’s floating exchange rate may depreciate.
   [8]
 (b)  Discuss whether a current account deficit is always a serious economic problem for a
country.  [12]
can i get like a model answer for it!!!i just want to see and get an idea of how to write it!!
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 12, 2011, 01:02:09 pm
i have another question:
may/june 2009 P21 qns1 c part 1 i got the part that it increased but the markscheme said from under to over 50% or from approx 40% to 60% in total...???how d we calculate the percentage!!


There are different ways of showing it , but i think the marking scheme took it this way

Total exports in 2002 = 18 (approx)
total copper exports  =   7

7/ 18 x 100 = 38.8%


total exports in 2005 = 40
total coppoe xpots   =  23

23/40        =57.5%

it dosent matter about the % u just hav to show how u got it !!

so as u can see its obviously from under 50% to over 50% by 2005 :D got it?
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 12, 2011, 01:35:14 pm
(a)  With the aid of a diagram, explain why an economy’s floating exchange rate may depreciate.
   [8]
 (b)  Discuss whether a current account deficit is always a serious economic problem for a
country.  [12]
can i get like a model answer for it!!!i just want to see and get an idea of how to write it!!

k i totally suck @ writing :S  , By the way heres hw i would ans the question, u might just get some points out of it...

a) i would define wat exchange rate is then ; wat floating exchange rate is how it works i.e Demand & supply for our currency in world market .(i'd jump straight to diagram because i ha8 wrting  :P )

draw a diagram with elastic supply & demand for currency, explain wat is likely to happen when demand falls.
i.e to the value of our currency.Give reasons as to why it is likely to depreciate , eg reduction in tarriff or govenment encouragement to export.& explain y a elastic demand is likely to depreciate it more than an inelastic demand

Draw an exchange rate with inelastic demand.explain how a reduction in demand / supply effects exchange rate. next i might describe how demand for our currency would be reduced / supply increased .

& that might be it !!
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 02:24:32 pm

There are different ways of showing it , but i think the marking scheme took it this way

Total exports in 2002 = 18 (approx)
total copper exports  =   7

7/ 18 x 100 = 38.8%


total exports in 2005 = 40
total coppoe xpots   =  23

23/40        =57.5%

it dosent matter about the % u just hav to show how u got it !!

so as u can see its obviously from under 50% to over 50% by 2005 :D got it?
wow...i didnt think of that :-[.....thank alot :D
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 12, 2011, 02:42:30 pm
wow...i didnt think of that :-[.....thank alot :D

u r welcme :)
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 04:10:29 pm
k i totally suck @ writing :S  , By the way heres hw i would ans the question, u might just get some points out of it...

a) i would define wat exchange rate is then ; wat floating exchange rate is how it works i.e Demand & supply for our currency in world market .(i'd jump straight to diagram because i ha8 wrting  :P )

draw a diagram with elastic supply & demand for currency, explain wat is likely to happen when demand falls.
i.e to the value of our currency.Give reasons as to why it is likely to depreciate , eg reduction in tarriff or govenment encouragement to export.& explain y a elastic demand is likely to depreciate it more than an inelastic demand

Draw an exchange rate with inelastic demand.explain how a reduction in demand / supply effects exchange rate. next i might describe how demand for our currency would be reduced / supply increased .

& that might be it !!
thanx :)
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 04:11:21 pm
can i have the answer to part b too
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 12, 2011, 05:30:49 pm
can i have the answer to part b too
k ,

 current a/c includes visible + invisible trade( i.e services + physical goods) any factor earning or income

A current account deficit might obviously mean bad for a country as the countries exchange rate may depreciate i.e if it has floating exchange rate. This would be bad for country as the countries exports loose their value. If the country has a fixed exchange rate the government may have to finance the deficit.
It would mean a rise in government expenditure / use of foreign currency reserves/ borrowing from IMF(international monetary fund) or possible long term loans if the deficit is very large. This would be bad 4 a country because they hav to pay intrest & the loan back to borrowed country (again a outflow in long run).

                                  However it shuld be noted that Current account is not the only part in BOP, therefore a deficit in current account might be offset by the other accounts such as capital & financial a/c.
A deficit in a current account account might not be a big problem to a country which has a high currency reserves possibly accumulated from previous surpluses in BOP. so a deficit in one year might may damage thier economy in a miour way or not damage @ all.It also depends for how long the deficit continues if its for a short period of time it might not take the attention of the government as its not such a big problem. Thaugh the BOP is one of the main objectives of the government if a country is expected to face a bop deficit , i.e if the economy is experiencing growth & there is high demand for capital goods/ better technology they may be imported causing a deficit .but they are not bad for the economy in long run.It should alos be noted that consumers may enjoy better living standerds with more imports .

                               Therefore it could be said that currrent a/c deficit is not a serious problem for the economy as they hav both benifits & disadvantages. It all depends on how much the deficit is & why the deficit occured.
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 12, 2011, 06:14:34 pm
k ,

 current a/c includes visible + invisible trade( i.e services + physical goods) any factor earning or income

A current account deficit might obviously mean bad for a country as the countries exchange rate may depreciate i.e if it has floating exchange rate. This would be bad for country as the countries exports loose their value. If the country has a fixed exchange rate the government may have to finance the deficit.
It would mean a rise in government expenditure / use of foreign currency reserves/ borrowing from IMF(international monetary fund) or possible long term loans if the deficit is very large. This would be bad 4 a country because they hav to pay intrest & the loan back to borrowed country (again a outflow in long run).

                                  However it shuld be noted that Current account is not the only part in BOP, therefore a deficit in current account might be offset by the other accounts such as capital & financial a/c.
A deficit in a current account account might not be a big problem to a country which has a high currency reserves possibly accumulated from previous surpluses in BOP. so a deficit in one year might may damage thier economy in a miour way or not damage @ all.It also depends for how long the deficit continues if its for a short period of time it might not take the attention of the government as its not such a big problem. Thaugh the BOP is one of the main objectives of the government if a country is expected to face a bop deficit , i.e if the economy is experiencing growth & there is high demand for capital goods/ better technology they may be imported causing a deficit .but they are not bad for the economy in long run.It should alos be noted that consumers may enjoy better living standerds with more imports .

                               Therefore it could be said that currrent a/c deficit is not a serious problem for the economy as they hav both benifits & disadvantages. It all depends on how much the deficit is & why the deficit occured.
thanks!! 8)
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 13, 2011, 12:40:04 pm
i may/june 2004 p2 qns 1 part a..the markscheme says the CPI rose 14 times higher or equivalent use of data....when they say 14 times higher do they mean 1404/100=14.04
is that rite ??? ???
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 14, 2011, 09:27:39 am
yea i think it shuld be like that , but not sure :S
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 14, 2011, 10:22:56 am
yea i think it shuld be like that , but not sure :S
ok ;D
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 18, 2011, 08:34:43 pm
PLEASE HELP ME....I HAVE MY EXAM TOMORROW.....when they say money has an intrinsic value....what does it mean???????????
help pls
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 18, 2011, 09:44:19 pm
ok....i have one more doubt.....what is marxian criticism of the market economy??
come on....someone answer plsssssssssss!!!!
Title: Re: economics pastpaper doubts!
Post by: dj_dead on May 18, 2011, 11:29:11 pm
geeeez...wth is dat??? is dat even in da syllabus :S
or maybe it just mean criticism of the market economy as in the pros and da cons...analysis
Title: Re: economics pastpaper doubts!
Post by: dj_dead on May 18, 2011, 11:42:38 pm
it means the value of them aterial that money is made of...like the ACTUAL value....see these days money is made of paper....and if u look at it, the truth is that its value is extremely insignificant...how much does paper cost?? so THAT is the intrinsic value. it is the value that we hav placed on that one 100$ bill that makes it worth so much. in reality its intrinsic value is nothing.

hope u read this in time. all da very best :)
i have my paper too .
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 19, 2011, 02:05:00 am
thanx alot
best of luck to u too
Title: Re: economics pastpaper doubts!
Post by: dj_dead on May 19, 2011, 04:07:25 am
thnkoo
:)

wht variant  r u givin By the way? n wht country?
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 19, 2011, 09:34:04 am
Variant 2
Title: Re: economics pastpaper doubts!
Post by: dj_dead on May 19, 2011, 04:07:21 pm
ahan. i gave var 1 :)
Title: Re: economics pastpaper doubts!
Post by: ***exam*** on May 20, 2011, 10:51:58 am
PLEASE HELP ME....I HAVE MY EXAM TOMORROW.....when they say money has an intrinsic value....what does it mean???????????
help pls
well this is something i googled ! hope it helps
1. The actual value of a security, as opposed to its market price or book value. The intrinsic value includes other variables such as brand name, trademarks, and copyrights that are often dificult to calculate and sometimes not accurately reflected in the market price. One way to look at it is that the market capitalization is the price (i.e. what investors are willing to pay for the company) and intrinsic value is the value (i.e. what the company is really worth). Different investors use different techniques to calculate intrinsic value.

2. The amount by which a call option is in the money, calculated by taking the difference between the strike price and the market price of the underlier. For example, if a call option for 100 shares has a strike price of $35 and the stock is trading at $50 a share than the call option has an intrinsic value of $15 share, or $1500. If the stock price is less than the strike price the call option has no intrinsic value.

3. The amount by which a put option is in the money, calculated by taking the difference between the strike price and the market price of the underlier. For example, if a put option for 100 shares has a strike price of $35 and the stock is trading at $20 a share than the put option has an intrinsic value of $15 per share, or $1500. If the stock price is greater than the strike price the put option has no intrinsic value.

Read more: http://www.investorwords.com/2587/intrinsic_value.html#ixzz1Msv6BklA
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 20, 2011, 12:24:04 pm
well this is something i googled ! hope it helps
1. The actual value of a security, as opposed to its market price or book value. The intrinsic value includes other variables such as brand name, trademarks, and copyrights that are often dificult to calculate and sometimes not accurately reflected in the market price. One way to look at it is that the market capitalization is the price (i.e. what investors are willing to pay for the company) and intrinsic value is the value (i.e. what the company is really worth). Different investors use different techniques to calculate intrinsic value.

2. The amount by which a call option is in the money, calculated by taking the difference between the strike price and the market price of the underlier. For example, if a call option for 100 shares has a strike price of $35 and the stock is trading at $50 a share than the call option has an intrinsic value of $15 share, or $1500. If the stock price is less than the strike price the call option has no intrinsic value.

3. The amount by which a put option is in the money, calculated by taking the difference between the strike price and the market price of the underlier. For example, if a put option for 100 shares has a strike price of $35 and the stock is trading at $20 a share than the put option has an intrinsic value of $15 per share, or $1500. If the stock price is greater than the strike price the put option has no intrinsic value.

Read more: http://www.investorwords.com/2587/intrinsic_value.html#ixzz1Msv6BklA
thank you......i understood it!!! ;D
Title: Re: economics pastpaper doubts!
Post by: ***exam*** on May 21, 2011, 05:35:07 pm
thank you......i understood it!!! ;D

glad   :D :D!! which papers do u give ?
Title: Re: economics pastpaper doubts!
Post by: Tohru Kyo Sohma on May 21, 2011, 07:53:15 pm
i give economics,accounting,business studies and maths(P1 and S1) all AS level only.
Title: Re: economics pastpaper doubts!
Post by: Dasith on May 25, 2011, 04:22:44 am
ok....i have one more doubt.....what is marxian criticism of the market economy??
come on....someone answer plsssssssssss!!!!

hmm u mean karl marks, he was an economist , thats all i knw , i dont think they ask about another persons view about an economy in papers , they are on to more general questions like wat are the "disadvantages of market economy?"