IGCSE ECONOMICS DOUBTS HERE !!!!

[elemis]

Before posting your IGCSE Economics doubts here, have a look in this thread.

Use the search function in that thread to see if your doubt has already been answered.

If it hasn't then post here and I or someone else will help you.

[secureprivacy]

Hi
There's a question in a past paper which I don't really get:
0455-Paper 3 MCQ MJ06:

Q37:  Assuming nothing else is changed, what will be the effect if a country imposes tariffs?

A increased import prices
B increased export prices
C reduced government revenue
D reduced home production

I think its A but why does the answer say D?

Thanks!

[nid404]

It should be A. Check again. I'm pretty confident abt this one.

[secureprivacy]

Oh sorry - it is A. Thanks for it anyway =D

[secureprivacy]

Does this question make sense?

As the price of rice increases, the supply of rice increases. What does this say about the price elasticity of rice?

A Supply is price inelastic
B Demand is price elastic
C Demand is price inelastic
D Supply is price elastic

The answer says D but I don't get why?

[elemis]

In the VERY short run Rice is a price INELASTIC commodity as farmers cannot increase their output of rice as easily as a car manufacturer can, for example.

However, given enough time price increases will encourage more people to put their resources into the production of rice and existing farmers may buy more rice paddies to grow/sell rice.

Thus, overall the producers are willing to increase supply as price rises.

Hence, supply of rice is price elastic.

[SauD~]

I need good and simple definitions for all accounting principle (i.e. Going concern, prudence, Materiality and etc.)

[elemis]

I need good and simple definitions for all accounting principle (i.e. Going concern, prudence, Materiality and etc.)

Does this look like a thread for your Accounting queries ?

[SmartLooser]

Question: Explain whether a decline in the birth rate would mean the population of a country is declining.

Ans: ??

[SmartLooser]

Question: Why governments are involved in spending on education?

Ans: ??

[SmartLooser]

In 2007, there was an increase in demand for holidays using cruise ships as people wished to
avoid long delays at airports caused by increased security controls.

Q1: Identify a complementary (jointly demanded) good or service industry connected with cruise
ships and discuss the possible employment prospects in that industry as a result of the
increase in airport delays.

Q2: Some countries rely very heavily on the tourist industry. Discuss the possible consequences
of the delays at airports for the economy of such a country.

[SmartLooser]

(d) Analyse why different income groups have different spending patterns. Specify which groups and consider level of spending and also type of spending.

[Dasith]

I need good and simple definitions for all accounting principle (i.e. Going concern, prudence, Materiality and etc.)

i think i made a post for this some where , u can search it !!

[Star xD]

Can someone please explain the concept of Comparative Advantage? I've tried a lot of times but I just don't seem to understand
Thanks a lot.

[Dasith]

Can someone please explain the concept of Comparative Advantage? I've tried a lot of times but I just don't seem to understand
Thanks a lot.

Comparative is when a country has a reletive advantage of producing one good , when compared with another county. If a country can produce good X giving up less of another ,say good Y ( low opportunity cost in producing X) than another county , then that country is said to hav a comparative advantage. In comparative advantage we only see how much should be given up to produce another, not how much it can produce.

if u tried any specific question & find it difficult to understand plz post it here , i might be able to help u more then