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    lol, fair enough

    I'd go with the argument that because people have more disposable income, it stimulates consumer spending, leads to economic growth and a further expansion of the labour market, leading thusly to unemployment.
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    How about increased legal activities? Because the real wage has increased, people in the unofficial markets move to the official market. Thus the recorded employment has increased . Can't imagine how this will be bigger than the amount of people being laid off though. But then again if there are very stiff hire and fire laws, in the short run employment might just increase?
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    Can someone help me with this question please?

    CARBON NEUTRAL FLIGHTS

    A flight from London to Faro in Portugal ma cost as little as £15 on a budget airline such as easyJet. The flight will produce 0.6 tonnes of carbon dioxide emissions per person. If passengers are prepared to pay a voluntary donation of £10 towards the cost of planting a tree, this will replace the oxygen burned by the plane

    Using economic analysis and the above information, explain how airline passengers now have the opportunity to pay full social costs of their flight.(5 marks)


    Thanks in advance
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    (Original post by Mademoiselle Dee-chau-nelle)
    Can someone help me with this question please?

    CARBON NEUTRAL FLIGHTS

    A flight from London to Faro in Portugal ma cost as little as £15 on a budget airline such as easyJet. The flight will produce 0.6 tonnes of carbon dioxide emissions per person. If passengers are prepared to pay a voluntary donation of £10 towards the cost of planting a tree, this will replace the oxygen burned by the plane

    Using economic analysis and the above information, explain how airline passengers now have the opportunity to pay full social costs of their flight.(5 marks)


    Thanks in advance
    Because the £15 you pay for your flight only covers the personal costs and does not include the "cost" of the CO2 pollution. The cost of the CO2 is an externality, and by adding another £10 the full social cost is incorporated in the price. That shouldbe your main argument, so spin on that and include some graphs (like the benefit/cost diagram) and those 5 points should be yours!
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    (Original post by lukeitfc)
    lol, fair enough

    I'd go with the argument that because people have more disposable income, it stimulates consumer spending, leads to economic growth and a further expansion of the labour market, leading thusly to unemployment.
    i'm gonna rudely butt in and i apologise, but you can't argue that economic growth leads to unemployment. its quite the opposite since firms demand more workers.
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    (Original post by biggie-n)
    i'm gonna rudely butt in and i apologise, but you can't argue that economic growth leads to unemployment. its quite the opposite since firms demand more workers.

    I meant employment... just a slip of the hand.
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    (Original post by trevthetrev)
    Because the £15 you pay for your flight only covers the personal costs and does not include the "cost" of the CO2 pollution. The cost of the CO2 is an externality, and by adding another £10 the full social cost is incorporated in the price. That shouldbe your main argument, so spin on that and include some graphs (like the benefit/cost diagram) and those 5 points should be yours!
    Thank you so much
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    Hi
    Could you help me out and post a link to Economics HL Syllabus?
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    Can someone please help me the problem below:

    When the price of corn dogs is $.50, 10,000 corn dogs are demanded. When the price of corn dogs is $1.20, 5,000 are demanded. What is the price elasticity of demand for corn dogs?
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    PED = %change in quantity/%change in price
    now shove numbers in.
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    I tried doing a similar problem but didn't get the correct answer. Can someone please help me with the following homework problem:

    An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages. The agency decides to hire operators to monitor calls in order to attain the optimal number of personal calls (minimize total cost of personal calls)

    Number of operators Total Minutes of personal calls (per hour)

    0 600
    1 480
    2 410
    3 370
    4 350

    If operators receive $25 an hour, how many operators should the agency hire?
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    From some multiple choice questions, I think I know the answer but can't justify it. Bah, I've gone mind dead.

    Basically there's a diagram showing total revenue steadily rising.

    'The diagram shows a firm's total revenue as output increases. Which of the following best characterises such a firm?'

    Options:

    A) AR = Constant MR = Constant
    B) AR = Rising MR = Rising
    C) AR = Rising MR = Constant
    D) AR = Constant MR = Rising
    E) AR = Falling MR = Falling

    I think it's B, but as I said mind dead and I'm really confused now!

    Thanks in advance for any help
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    If the curve is becoming steeper, then yes it is B. If it is rising at an increasing rate, this shows that the revenue from producing an additional unit of output is increasing at each additional unit of output. Maybe defining marginal revenue and total revenue will get you the other marks.
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    (Original post by RogueTrader)
    If the curve is becoming steeper, then yes it is B. If it is rising at an increasing rate, this shows that the revenue from producing an additional unit of output is increasing at each additional unit of output. Maybe defining marginal revenue and total revenue will get you the other marks.

    This is due this afternoon and you're a lifesaver! Thanks
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    Hey I have a presentation comming up, The Question is about taxes on smoking and if it actually reduces people buying cigarettes. The Pro's and Con's to taxes on the item.

    I've not done a lot of work so far because I've had more important essays to hand in, but any pointers or material you guys could suggest would be brilliant.

    From working in a shop, I can tell smokers do not care about the brand as much they do the price, often people would just pick the cheapest. So raising taxes and the price of cigs, I dont think would make much difference to people smoking. They would smoke just as much, but just have less money to spend on other things, how can I represent that in my presenation from a more economical stand point?

    People on Lower incomes suffer the most from high priced cigs I think.
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    (Original post by StarbucK)
    Hey I have a presentation comming up, The Question is about taxes on smoking and if it actually reduces people buying cigarettes. The Pro's and Con's to taxes on the item.

    I've not done a lot of work so far because I've had more important essays to hand in, but any pointers or material you guys could suggest would be brilliant.

    From working in a shop, I can tell smokers do not care about the brand as much they do the price, often people would just pick the cheapest. So raising taxes and the price of cigs, I dont think would make much difference to people smoking. They would smoke just as much, but just have less money to spend on other things, how can I represent that in my presenation from a more economical stand point?

    People on Lower incomes suffer the most from high priced cigs I think.

    1. The big thing to talk about here is elasticity(assuming you've done elasticity, if not, skip to part two), smoking is a very inelastic product, so therefore, a small change in taxation, is not likely to change consumption too much. You'd have to start levying huge taxes in order to get a change. I'd work from there.

    2.(Ignore this if you understood part one) Smoking is addictive, therefore,a smallc hange in tax, is unlikely to do very much at all. Work from there.
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    I have a very basic understanding of Elasticity. Defining and explaining the concept of Elasticity, that doesn't answer the question completely though, does it?

    So I argue price elasticity of demand means smokers will not be put off buying the product because it is inelastic, a rise in price will not see a fall in demand?

    From an economic stand point, how could a government stop people smoking, is their an answer?
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    (Original post by StarbucK)
    I have a very basic understanding of Elasticity. Defining and explaining the concept of Elasticity, that doesn't answer the question completely though, does it?

    So I argue price elasticity of demand means smokers will not be put off buying the product because it is inelastic, a rise in price will not see a fall in demand?

    From an economic stand point, how could a government stop people smoking, is their an answer?

    It's not that there won't be a fall in demand, it's just likely that the demand is small in relation to the price increase, very small.

    I've drawn you a diagram here, The demand curve (D), I have shown as being very inelastic(steep), if the government increased price P1 to P2, it would cause a small change in demand(In relation to the price rise.



    ________________________________ ________________


    As for the question, how to stop people smoking, in my opinion, there is no real solution, other than banning it. You won't have covered social benefits yet, but basically, it's my opinion that the social benefits will never meet the social costs(i.e, no matter what price you put on it, smoking will never account for the externalities it creates, these externalities being death and such, it would be silly to put a price on a life). That's just my opinion though.
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    I've been trying to do profit maximisations and i understand that part but sales revenue maximisation is proving quite a challenge. Iv got a question here which says when sales revenue is at its maximum point, does this also mean that profits are at a maximum point?

    I was thinking of a two way debate....

    NO because...

    You have to remove costs of the goods sold to equal profit, e.g. Profit = Revenue - Costs whilst Revenue = Price x Quantity.
    Inflation?

    YES because...

    Economies of scale perhaps?

    Conclusion...

    depends on the firms objectives, whether it wants to maximise profit or maximise revenue.

    as you can see, im very stuck. help much appreciated.
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    Just a quick question which isn't about economic theory, but does anybody know if it's possible to get older versions of the Deloitte Football Finance Review off the web for free? The 2006 one costs £400, so obviously that's not an option, but I've been told by my teacher that you can access the older ones, but I can't find anything like that on the web.

    Anybody know?
 
 
 
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