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i've got a question.
How Recession and unemployment are related to each other?
Whats the first stage of recession which causes unemployment except financial crisis?

In a recession there's cyclical unemployment. As there's overall a decrease in consumer confidence, consumer spending and decreased consumption in an economy. AD falls theoretically, and so there's a decrease in National Output. Businesses are less likely to employ new people, and may make redundant those already employed as their is no need for them, if there's a fall in Aggregate demand.

Reply 2621

ashleefiorille

Consider the following production possibilities table:

Option	Y	X
A	0	100
B	80	80
C	120	50
D	140	10

a)Provide a measure of the approximate marginal opportunity cost of an additional unit of X for each interval. Is the law of increasing cost satisfied? Explain. (6 points)

b) Is the production of 100 units of X and 85 units of Y feasible? Why or why not? If so, is it efficient? (2 points)

C)Is the production of 80 units of X and 75 units of Y feasible? Why or why not? If so, is it efficient? (2 points)

Reply 2622

Winnie576

I am confused and need some help! T T
Does an increase or a decrease of unemployment can shifts the ppf to right or left?
What I means does the unemployment can influence the ppf ? what can make ppf shift?
Is there anybody can teach me clearly?

Reply 2623

gr8wizard10

21

Original post by Winnie576

I am confused and need some help! T T
Does an increase or a decrease of unemployment can shifts the ppf to right or left?
What I means does the unemployment can influence the ppf ? what can make ppf shift?
Is there anybody can teach me clearly?

PPF stands for the Production possibility Frontier, this is the Maximum level of output the economy can produce. Unemployment just means to say that the economy isn't producing at it's maximum point, it won't shift the PPF, but unemployment is shown inside the PPF as not all factor's of production are being utilised to their full extent.

Shifts in the PPF are the same as shifts with the LRAS (they are essentially the same thing), Increased Investement can potentially increase productivity, so the potential output that the economy is able to produce is increased. Factors affecting a outward shift include Advanced technology or better education and training.

Hope this answer's your question

Reply 2624

cammc445

2

Any help appreciated:

Discuss whether closing down the BBC and selling its right to air waves to commercial broadcasters would result in market failure.

Any help is appreciated - just looking for some reasons why and why not it would be market failure.

Thank you in advance :biggrin:

Reply 2625

Rafael_96

2

This thread is beautiful, only just found out about it! So many answers to give, so little time :P

Posted from TSR Mobile

Reply 2626

Superunknown17

17

Can anyone help me with a mathsy economics questions?

A firm's total revenue function is given by:
TR=20Q-Q^2

and its total cost function is given by:
TC=Q^3-8Q^2+20Q+2

where Q is greater than or equal to 0 represents output.

(i) Write down an expression for the firm's profit in terms of Q.

Surely its not as simple as: Pi(Q) = 20Q-Q^2 - Q^3-8Q^2+20Q+2

Thanks in advance for your help :smile:

Reply 2627

annetrinh073

Can someone help me to answer this question?

ECONOMICS UNIT 2 Edexcel

"Why do the negative and positive ouput gap never last forever?"

Reply 2628

sr234

13

Can someone help me on this question:
2 Which one of the following is most likely to discourage the growth of a firm? The existence of
A diseconomies of scale at low levels of output
B marketing economies of scale at high levels of output
C large economies of scale at low levels of output
D competing firms in the same industry

The answer is A, but i thought that diseconomies of scale only occurred at high levels of output? :redface:

Reply 2629

gr8wizard10

21

Original post by sr234

Can someone help me on this question:
2 Which one of the following is most likely to discourage the growth of a firm? The existence of
A diseconomies of scale at low levels of output
B marketing economies of scale at high levels of output
C large economies of scale at low levels of output
D competing firms in the same industry

The answer is A, but i thought that diseconomies of scale only occurred at high levels of output? :redface:

Yeah, depends different firms experience dis-economies of scale at different periods. The answer must be A as if a firm starts experiencing short-run dis-economies of scale whilst attempting to expand its business it's not worth the business expanding. For instance, an ice-cream truck business may not hire extra workers as it will eventually decrease the overall productivity as one of the factors of production stay fixed (in this case capital). The ice cream truck is too small to hire extra workers (for instance 10 extra units of labour) and short-run dis-economies of scale will occur.

Reply 2630

sr234

13

Original post by Abdul-Karim

Yeah, depends different firms experience dis-economies of scale at different periods. The answer must be A as if a firm starts experiencing short-run dis-economies of scale whilst attempting to expand its business it's not worth the business expanding. For instance, an ice-cream truck business may not hire extra workers as it will eventually decrease the overall productivity as one of the factors of production stay fixed (in this case capital). The ice cream truck is too small to hire extra workers (for instance 10 extra units of labour) and short-run dis-economies of scale will occur.

Thank you

I understand the question alot better now!

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Reply 2631

kokcc95

Hi What are the advantages of using money from the view of economics?

Reply 2632

gr8wizard10

21

Original post by kokcc95

Hi What are the advantages of using money from the view of economics?

The advantages of using cash as a form of payment are as follows :

1 ) Cash is the most common way of payment around the globe when compared to all other types of payment. As cash does not involve third-party action for its immediate conversion into other forms value.

2 ) Cash requires no authorization for the person who carries it, thus it is convenient for those who desires small payment amounts to be used.

3 ) The use of cash does not involve any transaction fees for both ends, that is, the person who uses cash and the merchant does not have to worry about paying any fees when buying and selling goods and services.

4 ) Cash is 'easy-to-carry' form of payment, neither ends are required to special hardware to complete a transaction.

5 ) Cash payment does not require additional knowledge when a transaction occurs, whereas credit card payment may need the users to be taught before hand in order to properly use it.

Reply 2633

kokcc95

Question: What is the likely effect on the volume of exports and imports if a country on a FIXED EXCHANGE RATE experiences a higher rate of inflation than its trading partners?

Ans is exports decrease import increase

My question is...
high inflation rate= exchange rate appreciates --> exports decrease, import increase
but then it's fixed exchange rate system, whenever there is appreciation/ depreciation of exchange rate, the bank authorities will adjust the exchange rate back to the rate. so there should be no changes in exports and imports..
someone please clear my confuse

Reply 2634

gr8wizard10

21

Original post by kokcc95

Question: What is the likely effect on the volume of exports and imports if a country on a FIXED EXCHANGE RATE experiences a higher rate of inflation than its trading partners?

Ans is exports decrease import increase

My question is...
high inflation rate= exchange rate appreciates --> exports decrease, import increase
but then it's fixed exchange rate system, whenever there is appreciation/ depreciation of exchange rate, the bank authorities will adjust the exchange rate back to the rate. so there should be no changes in exports and imports..
someone please clear my confuse

Don't confuse Inflation with the appreciation of currency. The question is asking for the likely effects of Inflation in the domestic country. General price increase = Goods are more expensive, other countries are less likely to buy from us.

Assuming there's a fixed exchange rate. Any rise in domestic prices would result in less international competitiveness as domestic goods become expensive relative to global competition. In hindsight Exports will decrease and Imports would stay constant, cetarus parabus. This would potentially result in a balance of trade deficit and AD will shift in.

(edited 10 years ago)

Reply 2635

Tracy234

Please help! Questions attached on Word document

Short run marginal cost will equal long run marginal cost at a level lower than long run average cost whenever the production technology exhibits diminishing returns to scale. True or false? Explain.

Thanks in advance.

Reply 2637

ak21

Hey I need help on 2 questions:
1. Consider a firm with the cost function C (q) = 16 + q^2.
(a) Determine the regions of q, for which the technology exhibits the increasing,
decreasing, and constant returns to scale.
(b) Suppose that the market price is p = 8 and the firm produces a positive amount
of output. Determine the rms output and prots. Compare your answer with those in
(a).

2. Cost functions: C1 (q) = 45 + 20q + 2q^2 C2(q) = 20 + 20q + 3q^2
Suppose that the rmcan select the technology for each level of output q. Determine
the formula for the rmsaverage cost function AC (q) in this case.

-> After I get both AC equations, what do I do after?

Please guide me through this question, I understand the concepts but I am slightly confused by the wording of finding the regions of quantity produced that will create positive/negative/constant returns.

Appreciate any and all help! :smile:

(edited 10 years ago)

Reply 2638

ForeverRed96

1

Right I'm doing aqa as economics and I struggle with analysis 12 mark question and a large portion of the 25 mark question what do I do to kill these type of questions

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Reply 2639

WhoNeedsOne

1

The question is:

Do you agree that the price of oil should be determined by free market forces rather than through the intervention of governments or organisations such as OPEC? Justify your answer. (25 Marks)

Please can someone write me a model answer ASAP!

Thank You!!! In Advance

Please Tag Me So I Can See That You Have Answered, Thanks

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