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Avatar for larry648
larry648
pls could someone explain to me how to go about this question 'The line between macro-economics and micro-economics theory cannot be precisely known, a true general theory of the economy would clearly embrace that.discuss fully'
Hi all :smile:
can anyone help please..
What are the internal and external factors effecting tesco.. is the question i am abit baffled as i seem to have information over load and i have another 2 assignments due in plus need to revise for my exam.. would really appreciate any help on this area.. thanks in advance :smile:
Reply 2642
Avatar for rextra
rextra
2
Can someone please help me with this one-- thanks in advance:

What is a deficit financed tax cut?
Original post by rextra
Can someone please help me with this one-- thanks in advance:

What is a deficit financed tax cut?


Im pretty sure that is a tax cut that is made possible by letting the budget go into deficit and borrowing the difference.
What parts of the AS Macroeconomics unit 2 will I need for Unit 4 Macroeconomics in A2 for the Edexcel exam board as I am finding it hard to know what I need to revise from AS.

Cheers
Original post by Major-TomNeville
What parts of the AS Macroeconomics unit 2 will I need for Unit 4 Macroeconomics in A2 for the Edexcel exam board as I am finding it hard to know what I need to revise from AS.

Cheers


Unit 4 builds on Unit 2. You need to understand everything in Unit 2 as unit 4 will just go further into depth, whilst learning a few more concepts and really applying real life situations into the equation.
Where can I study the government intervention to maintain competition in markets chapter of Unit 3 for Edexcel economics A2. I find that the textbook does not suit the specification for this topic. Could some please help me with this.

Cheers
Hi

Has anyone got any good revision notes for edexcel economics unit 4 that I can look at?

Any other tips for revising as well please.
Can someone answer this please? Q. Lisa derives utility from the consumption of food (f) and wine (w). Her preferences are represented by the utility function: U=f^0.6w^0.4. Find Lisa's marginal utility for food and wine and MRS.
Original post by Farooq182
Can someone answer this please? Q. Lisa derives utility from the consumption of food (f) and wine (w). Her preferences are represented by the utility function: U=f^0.6w^0.4. Find Lisa's marginal utility for food and wine and MRS.


Marginal utility of X/Y is the partial derivative of U with respect to X/Y

Marginal rate of substitution is -MUx/MUy

You should do the calculations yourself.
Original post by Chriswuk
Marginal utility of X/Y is the partial derivative of U with respect to X/Y

Marginal rate of substitution is -MUx/MUy

You should do the calculations yourself.


huh?
Original post by Farooq182
huh?


Simply writing back 'huh' ain't gonna cut it pal. What don't you understand exactly? Then maybe I can help you
17 What will make it more likely that road tolls will reduce traffic congestion?
A Cross-elasticity of demand between private and public transport is zero.
B Demand for car use is income-elastic.
C Demand for car use is price-elastic.
D Supply of public transport is price-inelastic

i can't think of any relationship between road tolls and how it will reduce traffic congestion if any of the above answer is true. At most, a rise in toll road will discourage users from buying new cars, but in that case, how would B and C cause a different effect when both will cause a fall in demand for car if income falls or price of car rises. please help me!!!
How can firms in a perfectly competitive market make supernormal profits in the short run?
Original post by Blyts-_
How can firms in a perfectly competitive market make supernormal profits in the short run?


Hmm. Supernormal profits (from my lowly AS level Economics education) are usually associated with monopolies, where obviously, the market is far from perfectly competitive.

Maybe something to do with brand recognition/advertising/that sort of thing? That would make a firm's product demand curve more inelastic than other firms. Not sure.
Original post by Blyts-_
How can firms in a perfectly competitive market make supernormal profits in the short run?


In the short-run firms are able to make a supernormal profit if their cost structure is such that P>MC. In the long-run this isn't possible as extra firms will enter the market as a result of the supernormal profits thus causing supply to increase and price to fall.

What the above poster is talking about is actually monopolistic competition.
(edited 9 years ago)
Original post by jaylim95
17 What will make it more likely that road tolls will reduce traffic congestion?
A Cross-elasticity of demand between private and public transport is zero.
B Demand for car use is income-elastic.
C Demand for car use is price-elastic.
D Supply of public transport is price-inelastic

i can't think of any relationship between road tolls and how it will reduce traffic congestion if any of the above answer is true. At most, a rise in toll road will discourage users from buying new cars, but in that case, how would B and C cause a different effect when both will cause a fall in demand for car if income falls or price of car rises. please help me!!!


It's C. Road tolls make using a car more expensive, hence price increases. When the price of car use increases, 'quantity' of car use will decrease and hence traffic congestion is reduced.
Original post by Chriswuk
It's C. Road tolls make using a car more expensive, hence price increases. When the price of car use increases, 'quantity' of car use will decrease and hence traffic congestion is reduced.

Assume that real GDP in Aspacifica is currently equal to the potential level. (Aspacifica is ahypothetical, small economy in the Asia-Pacific region.) Next, assume that the countryexperiences a major slump in business investment.
Using no more than two AD-AS (also known as ADI-SRIA) diagrams, illustrate the short-runmacro-economic effects of this investment shock.


Provide appropriate explanations, using full sentences.


Please need a help with explanations and illustrations :smile: thankkk yoouuu:smile::smile::confused:
Assume that real GDP in Aspacifica is currently equal to the potential level. (Aspacifica is ahypothetical, small economy in the Asia-Pacific region.) Next, assume that the countryexperiences a major slump in business investment.
Using no more than two AD-AS (also known as ADI-SRIA) diagrams, illustrate the short-runmacro-economic effects of this investment shock.


Provide appropriate explanations, using full sentences.


Please need a help with explanations and illustrations thankkk yoouuu
How can the deficit in the current account be financed by increasing levels of private sector external debt ? and How negative output gap put disinflationary pressure ?

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