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Reply 360

15

muslimbrother2007

How do u awnser a 15 mark question to get full marks?

I presume this is A level. From what I remember of those exams, the 'analysis' and 'evaluation' components on the mark scheme were the key. Almost everyone gets the 'knowledge and understanding' marks because its basically just remembering facts/processes. Its when you explain how these processes work that you pick up analysis marks. Evaluation is trickier to get, but basically just try and think of limitations to the theory/market you are talking about. My teacher said talking about possible future developments and changes also helps sometimes.

In the end, its best to ask your teacher the question, since there might be exam board specific advice he/she can give you! Good luck.

Reply 361

enigma2009

cheers thanks for the help

econgrad07

I'll do my best

The key ones are Gausss Markov

- The conditional mean of u (error) is 0
that is E(u / X1,...,Xt) = E(u) = 0

- In a regression, (X,Y) are independently and identically distributed
- The population variance of u is constant for all observations
- Normality assumption of error
- No perfect multicollinearity

Key property is also unbiasedness.

Model may not be linear/incorrectly specified, multicollinearity, biased estimates. can you be abit more specific.

If you have access to stata, there are many tests you can do. For eg, for normality you can do Jaques-Bera test but you need to obtain some values for this formula from a statistical program like stata.

Not 100% on this sorry.

Reply 362

shishi89

can someone help me with RPI-X... wat does it do n how it works- exam 2moro so need help asap.

Reply 363

CorpusNinja

15

shishi89

can someone help me with RPI-X... wat does it do n how it works- exam 2moro so need help asap.

The RPIX is the same as the RPI - its an inflation measure, for a basket of consumer goods, except that it excludes mortgage interest payments. This is because when the bank of england changes the interest rate, it impacts people's mortgage interest payments as well, and they don't want this to distort their measure of inflation.

For example, if the interest rate rose tomorrow, then everyone's mortgage interest payments would rise as well, and since this is picked up by the RPI, it would show up as an increase in inflation, whereas 'true' inflation might actually be falling as people spend less etc.

Its better than the RPI for this reason - it reveals the underlying inflation trends. Hope that was clear.

Reply 364

shishi89

life saver :biggrin:

thanks alot

Reply 365

Bex.

I've been using a set of useful notes by Kevin Bucknall for Unit 6 revision but I've just picked up on a reference to 'the ten major economic goals' and I'd assumed it was just necessary to know the main 4 objectives (steady growth, low unemploy, steady low inflation and B of P). I have a bit of an idea of what the other 6 could refer to but is it important to know them explicitly (the ten)? A brief google couldn't find much on this, any help much appreciated :smile:

Edit, Ok I've found them but it only lists seven when it says ten...so I'm even more confused!

It lists:

Economic growth, Allocation of resources, Inflation, S of L, distribution of income, B of P and value of pound

Reply 366

DorianGrey

1

If a firms AC curve shifts due to technology improvements, does it shift diagonally or does MC shift too (as MC always crosses AC at its lowest point)? Or do they both shift downward equally as logic is telling me?

Help appreciated

Reply 367

CorpusNinja

15

DorianGrey

If a firms AC curve shifts due to technology improvements, does it shift diagonally or does MC shift too (as MC always crosses AC at its lowest point)? Or do they both shift downward equally as logic is telling me?

Help appreciated

They both move down together as technology improves. The AC or MC will never move independently of the other.

Reply 368

ketz

Hey mate. I was wondering if you could give me some points on why the privatisation of the NHS is a bad thing?

Reply 369

London Prophet

17

Profit motive over production motive means underprovision of healthcare

Equity problems - the rich get a better NHS service than the poor
--> Due to above, poor people start dying of curable diseases

Would tempt immigrants away from the UK (which would be a bad thing, we need immigrant workers)

Would see thousands of job cuts

Reply 370

shakiki

Can someone tell me what solutions keynes proposed to resolve large scale unemployment? i know that he said cutting taxes and raising goverment expenditure but what esle did he propose?
someone please help because im really stuck!
thanks

Reply 371

shomkin

1

what would be the impact on the economy of increased government spending?

this is what I've come up with:

given that government spending is a component of AD, it will raise AD and hence prices/inflation.

but i don't understand what else would result. i mean what about things like the balance of payments and the exchange rate etc?

thanks

Reply 372

seoyoung90

Hi could anyone of you guys tell me what determines the price elasticity of demand for merit goods?

Reply 373

MeAndBubbles

12

Price Elasticity of Demand is determined by such things as

1. does the good have a substitute

2. is it an essential item or a luxury

3. is it a superluxury item

4. is it a big item expenditure eg. car, house

Whether a good is a merit good is determined by the government, it's not part of the individual consumers' determination of his/her preferences, and should not affect his/her elasticity of demand.

Reply 374

MeAndBubbles

12

I'm assuming by merit good you mean public good?

Reply 375

Apagg

13

The two aren't the same, so I doubt it :p:

Reply 376

bobby1986

biggie-n

They both move down together as technology improves. The AC or MC will never move independently of the other.

nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point

Reply 377

CorpusNinja

15

Pabs666

nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point

could you show that in a diagram? not 100% sure what you're getting at.

Reply 378

Apagg

13

Pabs666

nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point

Given that MC and AC have the same origin, they can't move independently. If fixed costs fall, so does the marginal (the cost of 0 units is lower, so MC starts lower down)

Reply 379

CorpusNinja

15

Apagg

Given that MC and AC have the same origin, they can't move independently. If fixed costs fall, so does the marginal (the cost of 0 units is lower, so MC starts lower down)

Yes, that's what I was thinking...

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