IGCSE/GCSE/O & A Level/IB/University Student Forum
Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: ***exam*** on June 01, 2011, 01:42:49 pm
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cld some 1 plz explain the reson 4 these answers !!
may/june 04
q7 answer C ------ why isnt the answer 4 this 1 diminishing marginal utility ?
q24 answer c
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s04_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s04_qp_3.pdf)
may/june 05
q 18 answer A
http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s05_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s05_qp_3.pdf)
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may june 2004
question 7
its c because they are not asking about the individual but the individual firm ! utility dosent diminish here because many consumers , but individual consumer yes it does! , since the producers produce the same product , a reduction in price of one firm will cause all the consumers to demand from that producer , it wont be a downward slope but a shift , but since they say its a downward slope here we hav to assume its due to imperfect knowledge .
24)
bank gives 9000 out 0f 10 000 , then people deposit 9000 again , bank gives 8100 & so it continues..
untill cash retained by bank = initial cash deposit , credit multiplyer effect. so its 10000/0.1 x 0.9
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& of course ans 4 the next question ;)
18:
This is a closed economy with no government !
present equribrium is @ an income of 220
As u know Income = expenditure = output =Aggragate demand(AD)
AD = consumption(C) + Investment ( I) ## this is of course in a closed economy
IF AD =220 then C = 3/4 x 220 & I = the rest since its in equilibrium
220 = 165 + I(I= 220-165)
220 = 165 + 55
& to reach full capacity the equlibrium income is:
240 = (3/4 x 240) + I
240 = 180 + 60
now as u can see the Investment incresd from 55 to 60 !
hope u get it
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yeah Thanks a lotttttt i got it !! :D :D
but with the ques 24 what is the formula for credit multiplier ?
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yeah Thanks a lotttttt i got it !! :D :D
but with the ques 24 what is the formula for credit multiplier ?
welcome ,
formula hmm , i think its
Injection(i.e 10000) / (leakages% i.e as decimal ) x (1- cash ratio % )
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welcome ,
formula hmm , i think its
Injection(i.e 10000) / (leakages% i.e as decimal ) x (1- cash ratio % )
oh ohk !! thanks a lot !! :D
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doubt !! :P
october /nov 2005
Q14
question paper http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w05_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w05_qp_3.pdf)
may june 2004
q14 !! what does the question mean ??
q20 !!
http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s04_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_s04_qp_3.pdf)
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doubt !!!!
oct/nov 2006
Q4 answer 4
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w06_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w06_qp_3.pdf)
q11answer C q20 answer D
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w10_qp_32.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w10_qp_32.pdf)
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doubt !! :P
october /nov 2005
Q14
question paper http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w05_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w05_qp_3.pdf)
poverty trap for an individual occurs when an individual is worse off from a rise in income as result of withdrawal of benefits and imposing of tax (higher).
from the defination, C is the ans.
Hey can u help me with Q15 for this paper
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doubt !!!!
oct/nov 2006
Q4 answer 4
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w06_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w06_qp_3.pdf)
work out the TR(no of workers*APP), then MR (differences between TR) and finally MRP of labour. Since it is perfect competition, firms employ up to wage = MRP
q11answer C q20 answer D
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w10_qp_32.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w10_qp_32.pdf)
q11: essential and most important condition of contestable market is that there are low barriers to entry and exit
q20: export is an injection(J), so fall in X has to be offset by rise in J or fall in leakage(W). Hence A but not D because fall in tax rises disposable income, the full rise is not spend here but only part. the rest is removed hence resulting in a smaller multiplier
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work out the TR(no of workers*APP), then MR (differences between TR) and finally MRP of labour. Since it is perfect competition, firms employ up to wage = MRP
q11: essential and most important condition of contestable market is that there are low barriers to entry and exit
q20: export is an injection(J), so fall in X has to be offset by rise in J or fall in leakage(W). Hence A but not D because fall in tax rises disposable income, the full rise is not spend here but only part. the rest is removed hence resulting in a smaller multiplier
dude u explained the wronq questions for 11 & 20 i think ? :O
11)
in perfect compition firms are price takers , if they try to make prices they end up making losses , so price wont change, IF marginal cost > MR it means they are not making profite i.e normal profit , so they reduce quantity back to place where MC=MR (this is also the equilibrum in perfect competion)
20)
ok the Deflationary gap is 4 , which is due to lack of investments,
when investment increases by 4 income rises by 20
4 + increase in consumption = 20
consumption increase = 20-4
then consumtion =16
marginal propensity to consume is the change in consuption to changge in income
change in income = 20
& the consumtion change u got 16
16/20 = 4/5 = 0.8
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poverty trap for an individual occurs when an individual is worse off from a rise in income as result of withdrawal of benefits and imposing of tax (higher).
from the defination, C is the ans.
Hey can u help me with Q15 for this paper
production targeting , because its atomatically decided by market forces than firm , all firms produce the maximum they can , to earn the highest , that is they produce untill MC= MR , no need of target production !
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thanks a lotttttttttt guys !! :D :D
i wonder how do you all understand numerical esp the consumption, investment ,multiplier !! it always goes right above my head ! :P :P
if ya'll have tim e! just one two more questions !!
oct/nov 2008
Q16 !! answer b
q2 !! what is parento efficiency ??
question pap http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w08_qp_3.pdf (http://www.xtremepapers.me/CIE/International%20A%20And%20AS%20Level/9708%20-%20Economics/9708_w08_qp_3.pdf)
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sorry didnt see this untill now :O ,
iguess u've done u r paper by now !
hw was it ?
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haha yeah done ;D ;D !! by the way !! thanks 4 all the help :D :D
paper was k !! but not as good as expected !!
how about u ?
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haha yeah done ;D ;D !! by the way !! thanks 4 all the help :D :D
paper was k !! but not as good as expected !!
how about u ?
yea same here , but it wasnt very bad either hehe :D :D
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haha yea !! hope 4 the threshold to be low !! what do u think it will be like ??
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probably between 101 - 110 , :P :D
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lol !! then i am sure no one in this world is going to get an A