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    one question - is this a good combination of subjects to take at AS Level if you want to study Economics as the main subject at university:
    Maths, Economics, Government and Politics, Biology
    Thanks
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    (Original post by ghijk)
    one question - is this a good combination of subjects to take at AS Level if you want to study Economics as the main subject at university:
    Maths, Economics, Government and Politics, Biology
    Thanks
    Which university? Some may prefer Further Maths to Biology.
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    (Original post by ghijk)
    one question - is this a good combination of subjects to take at AS Level if you want to study Economics as the main subject at university:
    Maths, Economics, Government and Politics, Biology
    Thanks
    I currently do those apart from Biology, the first three are an excellent combination and all interlink with each other (economic policy in politics, political decisions affecting the economy) you'll find maths doesn't come into A level economics apart from calculating YED, PED and other elasticities, but once you get to university you'll learn how to calculate MR and MC, use laws of logs to solve equations, and find minimum and maxmium points of economic functions etc. SO yes, they are a brilliant combination, but it's up to you as to what to drop at a2. Personally i'd drop the Biology as it's fairly unrelated.
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    I have been given this question and dont understand it can anyone help me in any way of form of answering it.

    Explain, and demonstrate with separate supply and demand diagrams, why (a) education and (b) taxation can be used to minimise the incidence of alcohol consumption. Fully explain your answer using economic analysis.
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    Help! Stuck on this question.

    Assume there is a single producer in the market for spaceships. The market demand curve for spaceships is given by P = 80 - 0.5Q; where P and Q are the price and quantity of spaceships, respectively. The producer faces the cost function TC = 30 + 30Q + 0.5Q2.

    What is the producer's economic profit, if operating at the profit-maximizing level of output and price?
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    (Original post by PopABottle)
    Help! Stuck on this question.

    Assume there is a single producer in the market for spaceships. The market demand curve for spaceships is given by P = 80 - 0.5Q; where P and Q are the price and quantity of spaceships, respectively. The producer faces the cost function TC = 30 + 30Q + 0.5Q2.

    What is the producer's economic profit, if operating at the profit-maximizing level of output and price?
    Surely you just consider the producer's optimisation problem:
    max Profit(P, Q, TC(Q)) w.r.t. (P, Q)
    so sub TC and P into Profit(P, Q, TC(Q)): max Profit(Q) w.r.t. Q
    where Profit(Q) = (80 - 0.5Q)Q - (30 + 30Q + 0.5Q^2) = -30 + 50Q - Q^2
    then just find FOC(Q) and solve for Q
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    (Original post by alex_hk90)
    Surely you just consider the producer's optimisation problem:
    max Profit(P, Q, TC(Q)) w.r.t. (P, Q)
    so sub TC and P into Profit(P, Q, TC(Q)): max Profit(Q) w.r.t. Q
    where Profit(Q) = (80 - 0.5Q)Q - (30 + 30Q + 0.5Q^2) = -30 + 50Q - Q^2
    then just find FOC(Q) and solve for Q
    Can't thank you enough, you're always so helpful

    Just one more question I've become stuck on though...

    Suppose that all individuals are identical and their monthly demand for cable tv access can be represented by p=5-0.5q, where p is price in pounds per hour and q is hours per month. The firm faces constant marginal cost of $1. The profit maximising two part tariff would yield what amount of total revenue?
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    (Original post by PopABottle)
    Just one more question I've become stuck on though...

    Suppose that all individuals are identical and their monthly demand for cable tv access can be represented by p=5-0.5q, where p is price in pounds per hour and q is hours per month. The firm faces constant marginal cost of $1. The profit maximising two part tariff would yield what amount of total revenue?
    What is a "two part tariff"? If you solve it out the normal way I get: p = 3, q = 4, TR = 12, Profit = 8. But I'm guessing there's something more to this by the way the question is phrased.
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    (Original post by alex_hk90)
    What is a "two part tariff"? If you solve it out the normal way I get: p = 3, q = 4, TR = 12, Profit = 8. But I'm guessing there's something more to this by the way the question is phrased.
    I'm not sure haha

    That's why I asked. Thanks for the help though
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    A two part-tariff is a pricing system which looks to extract as much consumer surplus as possible. The total payment made by a consumer is of a form t = F+pq where F is a lump-sum fee tagged along to the usual (price x quantity) payment.

    It has been a long time since I've touched this so I'd get a second opinion but -- intuitively, you have a constrained optimisation problem: Let t = total payment by consumers. Choose t,q to maximise t-q such that consumer surplus=0.
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    (Original post by PopABottle)
    I'm not sure haha

    That's why I asked. Thanks for the help though
    (Original post by Overmars)
    A two part-tariff is a pricing system which looks to extract as much consumer surplus as possible. The total payment made by a consumer is of a form t = F+pq where F is a lump-sum fee tagged along to the usual (price x quantity) payment.

    It has been a long time since I've touched this so I'd get a second opinion but -- intuitively, you have a constrained optimisation problem: Let t = total payment by consumers. Choose t,q to maximise t-q such that consumer surplus=0.
    Hmm, I thought it might be that but have never had to do any of those kind of questions so can't really help.
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    Name:  econ question jan 08.jpg
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    please help with this question!! i can't seem to figure out how to do the maths :/
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    (Original post by Chat-G)
    Name:  econ question jan 08.jpg
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    please help with this question!! i can't seem to figure out how to do the maths :/
    Draw out the diagram then it becomes easy. Essentially you shift Qs up by £10 to get Qs_tax then look for Qd=Qs_tax.
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    (Original post by alex_hk90)
    Draw out the diagram then it becomes easy. Essentially you shift Qs up by £10 to get Qs_tax then look for Qd=Qs_tax.
    okay i'll try thanks
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    Can anyone tell me how to draw the appropriate diagrams to show a 'positive out gap' and a 'negative output gap', or point me in the direction of the diagrmas online (clear diagrams please). By the way this is for AQA unit 2 Economics.
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    Could someone please explain balance of payments and it's link to exchange rates to me, please? It's the one thing I can't understand at all, and my exam (AQA Economics unit two) is getting closer. Thanks to anyone who can help.
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    (Original post by Plonk)
    Could someone please explain balance of payments and it's link to exchange rates to me, please? It's the one thing I can't understand at all, and my exam (AQA Economics unit two) is getting closer. Thanks to anyone who can help.
    As exchange rates rise the pound has more value. This means imports become relatively cheaper for us and exports become less competitive internationally.

    This will reduce the current account on the balance of payments, as it is exports minus imports (very simplistically, lots of other things aswell) and it could lead to a current account deficit (seen in lots of developed countries).

    Hope this helps!
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    Hey sorry to bother, can anyone answer the following as best as possible please?

    What are the advantages and disadvantages of:

    A direct tax
    An indirect tax

    (it's for A levels)

    Thanks!
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    (Original post by thefunktopus69)
    As exchange rates rise the pound has more value. This means imports become relatively cheaper for us and exports become less competitive internationally.

    This will reduce the current account on the balance of payments, as it is exports minus imports (very simplistically, lots of other things aswell) and it could lead to a current account deficit (seen in lots of developed countries).

    Hope this helps!
    That does help, but can I ask what causes exchange rates to rise and fall (interest rates are a factor, non?) and what impact that all has for the UK economy? Sorry, I have an awful micro teacher and I'm having to self-teach a lot.
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    (Original post by Plonk)
    That does help, but can I ask what causes exchange rates to rise and fall (interest rates are a factor, non?) and what impact that all has for the UK economy? Sorry, I have an awful micro teacher and I'm having to self-teach a lot.
    No problem, but I should probably tell you that this stuff is macro (although the diagram for exchange rates is micro).

    Exchange rates change with:
    Interest rates, as they rise speculators will buy pounds to take advantage of the higher rate, increasing the ex. rate (and vice versa)

    There are also other factors, for example if a country has an increase in productivity it can produce goods cheaper, therefore foreigners want to buy them and buy pounds, increase the ex. rate.

    Impact? Not really sure, can't reasearch it now as have micro and statistics exams within 10 hours so time is a VERY finite resource!

    Goodl luck!
 
 
 
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