IGCSE/GCSE/O & A Level/IB/University Student Forum
Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: twilight on April 19, 2009, 02:56:23 pm
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hey everyone.. ;)
i really need help economics AS in a question in O/N 2008 exam , paper1 multiple choice questions (9708_w08_qp_1.pdf)
its question 17 .. i've attached a copy of the question (its a graph question)
the correct answer was B but my answer was D .. i dont understand why
hope any1 cud explain to me why the answer is B not D bcoz i am really confused!!!! :-\ :-\
i asked my teacher and i got even more confused :-[
thanks
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With the price fixed at P2 the cuantity demanded is Q1, but the quantity supplied is Q2. The surplus at P2 must be bought up by the government. I think the answer is D. Incidentally I got an A in economics. 20 years ago.
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I agree. D is da answer as correctly explaind by astarmathz&phyx (i wish ur name was shortr lol!). Answer 'B' represents da amount spent by da CONSUMERS to keep da price afloat at P2.
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yeah .. thats y i answered D..
i TRULY hate the graph questions wen it cumz to government intervention and the part related to minimum and maximum price .. i get stuck with them :-[
i'm taking the xams in the june 2009 and i still cant score a full mark in 1 multiple choice paper.. am getting really stressed out :-\
thanks wriggle and astar(i made ur nick shorter now .. lol) ;)
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hii...
sorry but there was this multiple choice question about the characteristics of money that said:
Which characteristic of money is necessary for it to be accepted as a medium of exchange?
A. it is durable
B. it acts as legal tender
C. it is limited in supply
D. it is portable
my answer was B(acts as legal tender) but in the marking scheme it was C(limited in supply).. ???
i answered B becoz i think if it wasn't a legal tender ppl wud not use it.. but if its not limited in supply (like during inflation) only its value wud fall and ppl wud use it LESS.. :-\
hope any1 cud help me .. thanks ;)
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The reichsmark was legal tender in postwar germany but not accepyed cos it was worthless. For a while cigarettes were a currency. People must value a currency and for this to happen it must ae limited in supply.
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hmmm ur right .. i get the point .. thanksssss
and its kinda cool 2 have cigarettes as money in ur wallet ;D i can imagine sumthing like wen ur buying sumthing cheap like a coke 4 example u can give a cheap cigarette .. and to buy a car u'll give away boxes of marlboro ;) .. niceee
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hi .. can anyone please help me with this question ..
its an MCQ .. why is the answer C not A ? i get confused in the comparitive and absolute advantage part :-[
i've attached the question ..
thx in advance .. ;)
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do the hwole ratio thing and u will be able to get ur answer
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i get the part that country P has a comparitive advantage in producing Z bcoz it can produce Z at a lower opportunity cost that country Q..
but how duz country Q have an absolute advantage in producing Y??
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bcozcountry P can produce only 1000 while Q produces 1500 ...
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thanksssssss :D
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hi .. can anyone please help me with this question ..
its an MCQ .. why is the answer C not A ? i get confused in the comparitive and absolute advantage part :-[
i've attached the question ..
thx in advance .. ;)
People in Q can produce 50% more of good Y than people in P but only 25% more of good Z. Q has an absolute adantage in both product but it's advantage is less for good z, so this is p's comparative advantage.
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ahaaaa .. its much clear now .. yaaaayyyyy ;D
wowwww...... thanks loads astarmathsandphysics.. i like the way u did it .. i'll use it to solve the MCQs that came in this chapter.. ;)
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hi evry1 .. ;)
i have a question about exchange rates .. i'm confused .. i've attached the part of the question .. but if u need to get a look at the whole question here's the link http://www.freeexampapers.com/FreeExamPapers.com_.php?__lo=QSBMZXZlbC9FY29ub21pY3MvQ0lFLzIwMDcgTm92Lzk3MDhfdzA3X3FwXzIucGRm
when we say that the exchange rate of US$/euro increased .. doesn't this mean that the US$ becomes stronger with respect to the euro, and the euro becomes weaker with respect to the US$ ??!! ???
thats what i think ..
but in this paper the upward arrow shows that the euro becomes stronger and the US$ weaker .. why is it this way??can sum1 please explain
thanks.. :)
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us $/euro exchange rate increase means that now there are more us$ per euro which means that us $ has depreciated and euro has appreciated. example it increases from $1.5/euro to $2/euro, this means that 1 euro can buy $1.5 but now it can buy $2 hence $ has depreciated 33.33% and euro has appreciated by the same amount
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hi ppl .. :)
can any1 help in these multipl choice questions pleeeeeeeeeease ..
i've attached them
thanks in advance
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sumbudy plzzzzz .. :-[
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@twilight
If price elasticity of demand is equal to 1, total expenditure must be the same what ever you are changing (either price or quantity)
For the first one, Total expenditure = 12*4000 = 48000
Total expenditure must remain 48000 and quantity demanded must be 20000
Therefore, Price = 48000/20000 = 2.4
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@twilight
If price elasticity of demand is equal to 1, total expenditure must be the same what ever you are changing (either price or quantity)
For the first one, Total expenditure = 12*4000 = 48000
Total expenditure must remain 48000 and quantity demanded must be 20000
Therefore, Price = 48000/20000 = 2.4
oooo okkkkzzzz ... i get it thankssssss :-*
i tried using the PED formula and it didnt work ..
i gt it now
thanks alot :D
can u hlp me wid da second?
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You are welcome... And the second one is basically the same.
unitary price elasticity of demand means ped=1, implying total expenditure should there remain the same.
Total expenditure=25*100000=2500000
Total expenditure should be 2500000 and the firm wants to sell 125000 units
Therefore price= 2500000/125000 = 20
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i have a question!! :-[
"Discuss whether stability in the domestic value of money is essential for the country's well-being"
this question is from may/june 05 paper 2
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i have a question!! :-[
"Discuss whether stability in the domestic value of money is essential for the country's well-being"
this question is from may/june 05 paper 2
Stability in value would be upset by inflation. This causes problems with
the efficient working of the price mechanism, international competitiveness
and aspects of redistribution. Price stability can dent expectations and
profits and lead to lack of confidence and stagnation. These effects would
harm economic well-being. This may be shown by inefficiency,
unemployment, lower living standards etc. However the level of harm
depends upon the actual rate of change, whether or not it has been
anticipated and the comparative rate internationally. If these are relatively
favourable the effects may not cause significant instability. A low and
stable level of inflation is thought to encourage production and growth so
absolute stability is not necessary.
Understanding of inflation up to 2 marks
Discussion of harm done by inflation up to 6 marks}to max of
Discussion of circumstances when inflation up to 6 marks}10 marks
may be benign/beneficial
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Is it worthwhile studying the common agricultural policy? or not?
and will anything to do with agricuture be likely to come?
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You are welcome... And the second one is basically the same.
unitary price elasticity of demand means ped=1, implying total expenditure should there remain the same.
Total expenditure=25*100000=2500000
Total expenditure should be 2500000 and the firm wants to sell 125000 units
Therefore price= 2500000/125000 = 20
omg ... thank u soooooooooooooo MUCHHHH :-* :-* ... my old eco. tutor cudnt do it :D lol .. U ROCK
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both mcqs are actually based on the inverse relation between price and quantity demanded..... u can do them by the simple inverse proportion formula.
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sorry peeps .. can u help wid this 1 too ?
i know that for the TOT to increase any of the following should occur
~increase in export prices with import prices constant
~increase in export prices with decrease in import prices
~constant export prices with decrease in import prices
~increase in export prices and import prices but with the increase in export prices > increase in import prices
this makes the answer to this question between B, C and D
can sum1 help please?
thanks in advance :)
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and this question too please ..
why is it D not B ?? ??? plz help
thanks
sorry i'm asking too much .. but i hav loads of doubs abt MCQs .. hope any1 can help
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hey i thaught i help u with TOT qst u posted qst 27. 100 to 120 means tot improve expot price increse mre then import
knw it say terms increse frm 100 to 120 rite and tot=exprt/imprt*100
so let check option A if exprt price decrse by 10% and impot also then terms would b unchanged... do mathmatically 90/90*100=100
option B if exprt incrse by 10% and import decrse by 10% then by tat formula u dont get 120
now C option export increse by 20% and import unchage giving u 120/100*100=120 this is the answere as tot now 120 as said in qst
option again it would worsen ur terms of trade rather then improving it..
thankssss ALOTTTT buddy .. ur gr8 ... :D :D
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aa to b truthfull these qustion are really confusing lol normative is value judgment rite..
option B and D look mre appropiate cause it actual fact but D look mre apropaite put it this way as we knw if motorsit have to pay toll they would b at loss cause if they are also not able to afford bus ticket then no choice would b left for then ...confuisng a bit
hmmmm .. ur right .. its too confusing but i get it now .. its clearer ... thanks dude!! 8) :D
can i ask more questions?? :-[
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here's 1 more ..
i know that if the tax is imposed the supply curve wud shift to the left (so it can b either A or B )
The marking scheme shows the answer as A (that is .. the supply becomes more inelastic also)
why duz the elasticity change here?
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@twilight
There are 2 type of taxes:
(i) Ad Valorem taxes which add a certain percentage on price. (pivots the ss curve to the left)
(ii)Specific taxes which add a fixed amount of money onto costs. (shifts ss curve parallel to the left)
Refer to the attached diagrams
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ohhhh .. so do u mean that .. since its ad valorem .. then as the price rises the tax rises ?
thanks sweetyyyy
can i ask sum more questions?
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Yes, since it's a percentage... As price rises, the amount of tax imposed of the good rises, thought the percentage of the tax is still constant.
For example, a 10% tax on the good,
Price - 10, amount of tax - 1
Price - 12, amount of tax - 1.2
Price - 14, amount of tax - 1.4
The increase in tax shifts the ss curve further as opposed to a specific amount of tax.
You can ask more questions, though I cannot say for sure I'll know the answers...
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ohhh .. thanksss ..
am sure u'll b able 2 .. ;) :-*
here .. i've attached it .. can u tell me how u approach the answer?
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...
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thses too plz
sorry am asking too much
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It was at the lowest at the start. The percentages aree only the rate of increase. the price level is always increasing but the rate of increase is slowing
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It was at the lowest at the start. The percentages aree only the rate of increase. the price level is always increasing but the rate of increase is slowing
okiiiiii ... get itttt .. thanks astar :-* +rep
and u too priya +rep
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thses too plz
sorry am asking too much
b since the % increas from 112 to 257 is the biggest
c since exports will become cheaper hence more will be exported
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thses too plz
sorry am asking too much
b since the % increas from 112 to 257 is the biggest
c since exports will become cheaper hence more will be exported
hmmm . so the first 1 duznt hav anything 2 do with the money supply?
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thses too plz
sorry am asking too much
b since the % increas from 112 to 257 is the biggest
c since exports will become cheaper hence more will be exported
hmmm . so the first 1 duznt hav anything 2 do with the money supply?
No, Inflation - price level
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thses too plz
sorry am asking too much
b since the % increas from 112 to 257 is the biggest
c since exports will become cheaper hence more will be exported
hmmm . so the first 1 duznt hav anything 2 do with the money supply?
No, Inflation - price level
so we dont use the money supply values given in the table?
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No only the price index. The money supply take time to affect the price index. Typically longer than 6 months.
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okzzz .. thanks dude !!! :-*
i wanna ask a question about BOP
when do we credit and wen do we debit??
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Debit is when money is flowing out of the country and a credit statement is when money is flowing into the country :P