[economicsjunkie]

Hi guys can anyone help me with as level edexcel both unit 1 and 2 for bsd and econ revision notes....additional tips wld be much appreciated!!!

[PPF]

Hi can anyone please explain to me how pension rights affect inequality in a country please.

many thanks

[quint101]

Could someone please explain how a fixed exchange rate is maintained? Is it just via regulation, or are currency interventions via monetary policy, using central bank currency reserves also required? If the latter option is true, then what differentiates a fixed exchange rate system from that of a managed float? Could someone give examples of countries under a fixed exchange rate and managed float systems?
I’m currently going through my economics notes, and am uncertain about the main differences. For example, can we use a currency equalisation diagram (basically a buffer stack equivalent for currencies) to explain managed float of a fixed currency rate?

Thanks.

[MeAndBubbles]

I'll answer part of your question.

It's not an edict or law, it requires us to sell foreign currency using the Echange Equalization Account or alternatively buy foreign currency with pounds if necessary to maintain the exchange rate of the pound in the foreign currency market.

This using of reserves is a change in monetary policy because reserves are part of the monetary base, and under fixed exchange rates as I have explained reserves change and there would be a multiplied affect on the money supply. You cannot control the money supply and have a fixed exchange rate, I have think. Altthough some of these theories have behavoural postulates behind them, always be aware of the assumptions of a model.

[MeAndBubbles]

so the difference between the fixed and dirty float is:

the 'exchange market pressure' can come out in either the reserves or the exchange rate when it's a dirty float. If it's fixed it comes out in the reserves.

probably the main difference is there may be scope for independant monetary policy in a managed float

[sianmay]

Can anyone explain social/private/external costs and benefits? For AS level (OCR). I'm fairly sure I've been taught wrongly...

[alex_hk90]

(Original post by sianmay)
Can anyone explain social/private/external costs and benefits? For AS level (OCR). I'm fairly sure I've been taught wrongly...

Simply put: social cost/benefit = private cost/benefit + external cost/benefit.

[sianmay]

(Original post by alex_hk90)
Simply put: social cost/benefit = private cost/benefit + external cost/benefit.

Thanks!

[Anus]

A man has 532 Mango trees in his orchard. He has an additional 500 in his nursery and 2,00 hectares of sugar cane planted.
Demand for sugar cane is such that the regulated market price is $20 a pound of raw sugar cane (spot) and for mangoes
$25 a kilogram (spot), how many apple trees of the Jonathan variety does he have in his orchard without counting any in his nursery.

Now try that out with your Econometrics and advanced maths for economic analysis. No the question is not illogical or a teaser.
It requires superior Macro and Micro economic knowledge and application and a good understanding and analytical ability using econometrics
and advanced maths for analysis.

[alex_hk90]

(Original post by Anus)
A man has 532 Mango trees in his orchard. He has an additional 500 in his nursery and 2,00 hectares of sugar cane planted.
Demand for sugar cane is such that the regulated market price is $20 a pound of raw sugar cane (spot) and for mangoes
$25 a kilogram (spot), how many apple trees of the Jonathan variety does he have in his orchard without counting any in his nursery.

Now try that out with your Econometrics and advanced maths for economic analysis. No the question is not illogical or a teaser.
It requires superior Macro and Micro economic knowledge and application and a good understanding and analytical ability using econometrics
and advanced maths for analysis.

Is this a typo? Everything else is about mangoes and sugar cane then suddenly apples ("of the Jonathan variety?) are involved.

[Mr_PC]

Are these all three government policies:

1) Fiscal /// supply side
2) Monetary
3) Quantitative easing

Is supply side another name for fiscal?

Or have I made any mistakes? I can find the definition myself.

And it is embarrassing that something so simple has slipped my mind .

Please correct any mistakes, thank you!

[alex_hk90]

(Original post by Mr_PC)
Are these all three government policies:

1) Fiscal /// supply side
2) Monetary
3) Quantitative easing

Is supply side another name for fiscal?

Or have I made any mistakes? I can find the definition myself.

And it is embarrassing that something so simple has slipped my mind .

Please correct any mistakes, thank you!

Demand-side policies:
- fiscal
- monetary (of which QE is one type)

Supply-side policies (usually microeconomic, things like labour market reform).

[Mr_PC]

(Original post by alex_hk90)
Demand-side policies:
- fiscal
- monetary (of which QE is one type)

Supply-side policies (usually microeconomic, things like labour market reform).

So the three policies (not including all of the tight and lose) are:
Fiscal
Monetary
Supply side

Are you 100% sure?

Thanks!

[alex_hk90]

(Original post by Mr_PC)
So the three policies (not including all of the tight and lose) are:
Fiscal
Monetary
Supply side

Are you 100% sure?

Thanks!

For A-level, more or less, yes.

[Mr_PC]

(Original post by alex_hk90)
For A-level, more or less, yes.

Mind answering these, I need to study for something else now (I ****ed up badly with time management no lectures please!):

1) 4 stages of a business cycle (isn't that introduction, maturity etc... still tell me as I don't know)

2) Two types of normal good

3) Macroeconomics

4) Economies of scale diagram

5) Market share (isn't that what % of a market a business owns, such as entertainment)

6) Market share diagram

7) Delegation (isn't that when you give your job to someone else but you're still responsible?)

8) Organisational structure (everyone employed by the business)


Thanks in advance!

[Nilsdejongh]

m just studying for my AQA Economics Unit 2 exam and was looking at fiscal policy. I understand that it used to be Keynesian lead and mainly focused on Demand side policies and how it is now mainly Supply side fiscal policies where tax and gov spending changes are mainly focused to shft the LRAS to the right - to increase incentives etc..

However i was getting to the end of the chapter where it says
(Figure 12 is a diagram containing a LRAS Curve and a SRAS Curve, and AD1 shifting to the right to form AD2 to create a new equilibrium)

"the extent to which expansionary fiscal policy reflates real output (in this case from y1 to y2), or creates excess demand that leads to demand pull inflation (in this case an increase in the prie level from p1 to p2), depends on the shape of the AS curve, which in turn depends on how close initially the conomy was to full employment. The nearer the conomy gets to full employment, the greater the inflationary effect of expansionary fiscal policy and the smaller the reflationary effect"

I dont understand the paragraph completely, especially when they talk of the inflation it causes.. is this a downside with Demand side fiscal policy is that it causes inflation? why does it depend on the shape of the AS Curve etc.

If somebody could explain id be very greatful

[Seanm1994]

How does increased productivity, as a result of investment in new capital equipment for example, lead to increased international competitiveness?

Correct me if I'm wrong but is it because as firms costs decrease they are able to lower their prices below their competitors?

[Nilsdejongh]

What determines the shape of the SRAS Curve?

[usycool1]

(Original post by Seanm1994)
How does increased productivity, as a result of investment in new capital equipment for example, lead to increased international competitiveness?

Correct me if I'm wrong but is it because as firms costs decrease they are able to lower their prices below their competitors?

Yup, you're right

[usycool1]

I had my GCSE Economics paper last week. The last question threw me a little:
In your opinion, should the government reduce government spending or increase taxation to reduce a budget deficit? Explain your answer (8 marks)

I thought that reducing government spending would be better. This is because increasing taxation could have regressive or progressive effects ( I explained it in more detail in the exam), so the government could lose out on taxation all together, so the budget would not improve.

However, most of my other friends said that they selected to increase taxes.

I'm not sure who's right, so I was wondering if someone could tell me the 'correct' answer (i.e. what method you think would be best).

Thanks