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    Are the net advantages of an occupation, all the advantages including non-monetary such as health benefits, skill benefits etc minus all the disadvantages of the job, like fatigue and stress?
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    (Original post by Ploop)
    Are the net advantages of an occupation, all the advantages including non-monetary such as health benefits, skill benefits etc minus all the disadvantages of the job, like fatigue and stress?
    In short, yes.
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    In 1999-2001, what was the Conservative spending plan that Labour government stuck to and gained fiscal surplus?
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    (Original post by iRealGirl)
    In 1999-2001, what was the Conservative spending plan that Labour government stuck to and gained fiscal surplus?
    Brown made great of the fact he wasn't going to be reckless with economy, because Labour were thought to be less sound on the economy. So the first term he strictly kept the Conservative spending plans. Plans include hospital spending which has since increased alot.
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    ^ Thanks well_tempered!

    Also, there were increased indirect taxes at that time. How is indirect tax taken. What could I write when I talk about indirect taxes? Is it to do with consumption?
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    Labour kept the fuel tax escalator which I think the Conservative started.

    To be honest, I think the Conservatives did increase indirect taxes, one of them increase it on household fuel or something.

    It's collected at the point of sale, unless you pay in cash and try to haggle not to pay VAT. I think the business turnover has to be something like over £30,000, and then the government will invoice you or something. I'm totally confused!
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    Can anyone help me with Opportunity Cost please? I've read what it is, but I just can't quite get my head around the idea of it. Is the opportunity cost the next best thing you could have chosen but didn't?
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    Yes. For example, the opportunity cost of spending money is the interest you could have earned had you put it in a savings account. The opportunity cost of leisure is the wage you could have earned working instead. And so forth
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    1.The wage rate (w) set by a monopoly supplier of labour is such that :

    a) MRPL > W
    b) MCL < W
    C) MCL = W
    D) none of these

    2.The profit maximising rule in the factor market is?

    a) MPP = MCC and MPP < APP
    b) MRP = factor price and MRP > ARP
    c) MRP = factor price and MRP < ARP
    d)none of these.

    3. The isoquant: cost line condition for output maximisation is:

    a) MRTS = price ratio
    b) -MRTS = -price ratio
    c)MRTS = price ratio and all costs are spent
    d) -MRTS = -price ratio and all costs are spent


    not sure on these 3 questions after doing a past paper, help urgently appreticated!! x
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    (Original post by Apagg)
    Yes. For example, the opportunity cost of spending money is the interest you could have earned had you put it in a savings account. The opportunity cost of leisure is the wage you could have earned working instead. And so forth
    Ok cheers for that. So just to check, the opportunity cost isn't like in your example how much interest you would've earned, but just the interest?
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    anyone who can answer those questions i set above will get rep, it's kinda urgent lol
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    (Original post by cool beans)
    not sure on these 3 questions after doing a past paper, help urgently appreticated!! x
    Since you're desperate I'll have a go but I can't be sure that they'll be correct as I haven't done those topics for a while (and the last one not at all).

    (Original post by cool beans)
    1.The wage rate (w) set by a monopoly supplier of labour is such that :

    a) MRPL > W
    b) MCL < W
    C) MCL = W
    D) none of these
    a) (but possibly d)) Monopoly suppliers of labour hire workers up to the point where MRPL = MCL, where W = ACL at this quantity of labour. At this point, MRPL > W.

    (Original post by cool beans)
    2.The profit maximising rule in the factor market is?

    a) MPP = MCC and MPP < APP
    b) MRP = factor price and MRP > ARP
    c) MRP = factor price and MRP < ARP
    d)none of these.
    c) The only profit-maximising rule I know is MR=MC, and this looks the closest to that. Also I think MRP < ARP should mean that there's a higher profit overall. I'm really not sure though.

    (Original post by cool beans)
    3. The isoquant: cost line condition for output maximisation is:

    a) MRTS = price ratio
    b) -MRTS = -price ratio
    c)MRTS = price ratio and all costs are spent
    d) -MRTS = -price ratio and all costs are spent
    d) Intuition.

    Sorry I couldn't be of more help but you did say it was urgent.
    Hopefully someone will correct my answers.
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    (Original post by tomohara)
    Ok cheers for that. So just to check, the opportunity cost isn't like in your example how much interest you would've earned, but just the interest?
    I'm not sure I understand the distinction you're making
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    (Original post by tomohara)
    Ok cheers for that. So just to check, the opportunity cost isn't like in your example how much interest you would've earned, but just the interest?
    If you mean do you write "the opportunity cost is the interest" or "the opportunity cost is the interest you would've earned", then I think either is acceptable.
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    (Original post by tomohara)
    Ok cheers for that. So just to check, the opportunity cost isn't like in your example how much interest you would've earned, but just the interest?
    Well it's just the same thing really. It *would* be the amount of interest, but we can't say specifically how much that is without more information. Instead, we'd just use the generalisation that it is 'the interest'.
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    'Crowding out Private sector investment' due to Fiscal deficit. What does that mean?
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    When the government borrows (fiscal deficit), it tends to do so in the hundreds of millions, and usually billions, of pounds. An increase in the demand for loanable funds by £1bn will drive up the interest rate, making borrowing more expensive and reducing private sector borrowing. This reduces the amount of funds available for investment.
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    (Original post by Apagg)
    When the government borrows (fiscal deficit), it tends to do so in the hundreds of millions, and usually billions, of pounds. An increase in the demand for loanable funds by £1bn will drive up the interest rate, making borrowing more expensive and reducing private sector borrowing. This reduces the amount of funds available for investment.
    So, would it be correct to say (for what the effect of fiscal deficit is):

    It would put upward pressure on interest rates. A large deficit means the government needs to borrow more hence this causes debt to grow. The government may need to raise interest rates in order to encourage enough people to buy the debt. Higher interest rates cause lower growth and may crowd out private sector investment. This is known as financial crowding out.

    I don't know if it would encourage people to buy the debt as people will opt to save as oppose to spend and increase consumption. How would AD increase, as investment and consumption is falling. :confused:
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    Buying debt is saving, they're the same thing.
    Government expenditure increases total expenditure by G. However, the rise in interest rates depresses investment, decreasing total expenditure. The increase in G should exceed the decrease in I (except in the case of 100% crowding out).

    Now, remember the Keynesian consumption function says that consumption is a function of income. As income has risen, consumption will also rise. Whilst the marginal propensity to consume might fall, the total value of consumption should still rise.
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    What does 'increasing worklessness' mean? (Unit 5)

    EDIT: Why does supply of labour becomes more elastic over time?
 
 
 
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