Revision Tips for 2016 Economics A Level exams Watch

BrownieLover
Badges: 2
Rep:
?
#41
Report 3 years ago
#41
thanks.
So GNI is the same as GNP but the only difference is that it's at market prices (it adds indirect taxes and excludes subsidies)?


Why do we calculate GDP at market prices rather than factor costs?
0
reply
mapotts53
Badges: 3
Rep:
?
#42
Report Thread starter 3 years ago
#42
Because it then accurately reflects the actual prices being paid by consumers for goods and services.
0
reply
BrownieLover
Badges: 2
Rep:
?
#43
Report 3 years ago
#43
(Original post by mapotts53)
Because it then accurately reflects the actual prices being paid by consumers for goods and services.
Thank you thats very helpful.
Is it alright if you answer this please:
'a rise in income will shift the demand curve. It may, but need not necessarily, alter its slope. This was found in one of the mark schemes. How would a rise in income alter the demand curve slope?
Also, if it was an inferior good, there would be a fall in demand so the curve would shift to the left, right?
0
reply
mapotts53
Badges: 3
Rep:
?
#44
Report Thread starter 3 years ago
#44
A rise in income could affect the elasticity of demand for a product because if we have more income then a rise in the price of the good may not lead to a significant fall in demand because we can still afford it. So, it may make demand more inelastic. Correct on the inferior good.
0
reply
BrownieLover
Badges: 2
Rep:
?
#45
Report 3 years ago
#45
(Original post by mapotts53)
A rise in income could affect the elasticity of demand for a product because if we have more income then a rise in the price of the good may not lead to a significant fall in demand because we can still afford it. So, it may make demand more inelastic. Correct on the inferior good.
Thank you so much.

How would speculative demand be affected by a rise in unemployment?
0
reply
BrownieLover
Badges: 2
Rep:
?
#46
Report 3 years ago
#46
This question was about which is greater, consumer or producer soverignity.
Examiner report:

some students were able to suggest that even in markets which might be thought to be more competitive – suchas street fruit and vegetable markets – it is not always possible for a consumer to obtain an articlethat the stall-holder, and every other stall-holder, was not supplying. They then questioned theexistence of consumer sovereignty even in these relatively competitive markets.

Does this mean that even in a street market not all products are exactly the same quality, so the producer may be more in control than the consumer since they control what products are available and what quality they are??
0
reply
mapotts53
Badges: 3
Rep:
?
#47
Report Thread starter 3 years ago
#47
(Original post by BrownieLover)
Thank you so much.

How would speculative demand be affected by a rise in unemployment?
It would increase uncertainty so people would increase speculative demand for money as they fear losing their job (an unforeseen circumstance).
0
reply
mapotts53
Badges: 3
Rep:
?
#48
Report Thread starter 3 years ago
#48
Today's revision tip focuses on Unit 2 macroeconomics. Ensure you know the main macroeconomic objectives. Make up an acronym to remember them so that you can discuss them in responses. For example try GUBI:
Growth
Unemployment
Balance of Payments
Inflation
0
reply
BrownieLover
Badges: 2
Rep:
?
#49
Report 3 years ago
#49
(Original post by mapotts53)
Today's revision tip focuses on Unit 2 macroeconomics. Ensure you know the main macroeconomic objectives. Make up an acronym to remember them so that you can discuss them in responses. For example try GUBI:
Growth
Unemployment
Balance of Payments
Inflation

How many diagrams would you expect to see in a 25 marker?
Also, if we get a 25 marker on why GDP is a good/not good indicator of living standards, I could do a diagram showing higher GDP - higher employment which would lead to higher living standards, but also the Kuznets curve to show how GDP doesnt show income distribution. Is there any other diagrams I can do?
0
reply
BrownieLover
Badges: 2
Rep:
?
#50
Report 3 years ago
#50
Please can you answer this URGENT question:
Discuss whether there is a relationship between the marginal cost curve of the firm and thesupply curve of the industry to which it belongs.
I know that in the short run for a perfectly competitive firm, the supply curve is the portion of the MC curve that lies above the AVC. The firms' supply curves are added to form the market supply curve, which is upward sloping.
In the long run, the supply curve is the portion of the MC curve that lies above the ATC. However, I read that you cannot horizontally add all individual firms' supply curves to add the market supply curve in the long run. Why is this? How do we form the market supply curve?

I would also have to explain the lack of such a relationship in imperfect competition. But why is there a lack of this relationship - why can't we add the marginal cost curves of firms in imperfect markets to form the supply curve? What diagram would I draw to show the lack of this relationship?Thanks.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • University of Bristol
    Undergraduate Open Afternoon Undergraduate
    Wed, 23 Oct '19
  • University of Exeter
    Undergraduate Open Day - Penryn Campus Undergraduate
    Wed, 23 Oct '19
  • University of Nottingham
    Mini Open Day Undergraduate
    Wed, 23 Oct '19

Have you made up your mind on your five uni choices?

Yes I know where I'm applying (116)
66.29%
No I haven't decided yet (35)
20%
Yes but I might change my mind (24)
13.71%

Watched Threads

View All