Economics Predictions

Gi joe!

What are yours?:)

I think :Banking System-how banks create credit
Oligopoly
Causes of Unemployment/Solutions
Why property market went down toilet
Why Ireland is less attractive for foreign firms

Lemme know I need the guidance badly!:(

7Steve

Costs of Production is almost a cert. It was due up the last few years and the teachers have been complaining to the SEC about it.

Even though it came up for the last few years, I'd say the current figures Q is going to come up.

The whole damn thing will have "The Recession" written all over it.

xOxSinéadxOx

what's costs of productions about? is that fixed and variable costs and all that jazz?

GVNDNN

Yeah it is

I'm so bad at this exam

Please help!!!


I'm hoping AT LEAST 3 micro come up
Macro will be sick

7Steve

xOxSinéadxOx wrote: »

what's costs of productions about? is that fixed and variable costs and all that jazz?

You need to know about Average Costs and Marginal Costs (and their relationship). Economies and Diseconomies of Scale. Why small firms can survive (Nature of Good, Convenience, flexibility, Market size etc.). I'm pretty sure MPP and MRP can come up in that section aswell. And, like you said: Variable costs and fixed costs.

K4t

hey guys

The CSO website doesn't have figures for 2009?????

xOxSinéadxOx

7Steve wrote: »

You need to know about Average Costs and Marginal Costs (and their relationship). Economies and Diseconomies of Scale. Why small firms can survive (Nature of Good, Convenience, flexibility, Market size etc.). I'm pretty sure MPP and MRP can come up in that section aswell. And, like you said: Variable costs and fixed costs.

oh really, ew I know nothing about that

ynwa_17

Imperfect competition is the hot tip to come up in Micro

A theory question on elasticity, 35m on the uses i'd say.

Banks creating credit should be there, and if it does i wouldn't be surprised to see a question on Keynes.

K4t wrote: »

hey guys

The CSO website doesn't have figures for 2009?????

http://www.statusireland.com/

Gi joe!

ynwa_17 wrote: »

Imperfect competition is the hot tip to come up in Micro

A theory question on elasticity, 35m on the uses i'd say.

Banks creating credit should be there, and if it does i wouldn't be surprised to see a question on Keynes.



http://www.statusireland.com/

What could you say for uses of elasticity, all I can think of is to increase tax on inelastic goods like cigarettes and lower tax on elastic goods like cars

ynwa_17

Gi joe! wrote: »

What could you say for uses of elasticity, all I can think of is to increase tax on inelastic goods like cigarettes and lower tax on elastic goods like cars

If it comes up it'll either be a 35m or a 20m, thus you'd be looking for between 4 and 7 points

This is taken from an economics guide, if anyone wants the link i'll try and find it


A monopolist would use knowledge of PED to indicate whether total revenue will increase or decrease when price is changed. If demand for the product is price inelastic, the monopolist can continue to increase prices until demand becomes elastic and TR begins to fall.

Knowledge of PED will help any producer to decide whether to increase or reduce prices if he wishes to increase total revenue (TR). When demand for a good is price inelastic, an increase in price will lead to an increase in TR, if demand is elastic a seller should decrease price to increase TR.

Knowledge of PED will also allow a producer to examine what will happen to profit if prices are altered. If the demand for a good is price inelastic, then an increase in price will lead to an increase in profit.

Knowledge of PED will also help a producer who is considering increasing the quantity produced. If PED is – 0.8, then if the producer wishes to increase production by 4%, then he must reduce prices by 5% as

%Δ Q = +4 = -0.8
% Δ P -5

Government use PED when deciding on changes in levels of indirect taxation (VAT, customs and excise duties, etc). If the government know that the demand for cigarettes is very price inelastic, then any increase in their price (brought about by an increase in the level of indirect taxation) will lead to increased tax revenue to the State. Governments generally levy taxes on goods they know to be price inelastic in order to increase total tax revenue to the State. The “old reliables” include petrol, alcohol and cigarettes.

Producers may use knowledge of YED when trying to predict future demand for a good. If the economy is predicted to contract by 5% over the coming year, then on average we have 5% less income with which to spend. If the YED for a good is +1, then a 5% fall in income will lead to a 5% decrease in the quantity demanded.

Knowledge of CED will help a producer calculate the increase in the demand for his product as a result of a price increase in a competing product. If CED = +0.9, between Good A and Good B, then a 10% increase in the price of Good A will lead to a 9% increase in the quantity demanded of Good B.





Thats an A1 standard answer, but we all know in the case of Economics this is whats required

Économiste Monétaire

K4t wrote: »

hey guys

The CSO website doesn't have figures for 2009?????

Which figures are you looking for?

K4t

Économiste Monétaire wrote: »

Which figures are you looking for?

Inflation, Interest rate, Unemployment figures, Birth rate, Death rate, Government finances info etc.

The CSO figures are all from a year ago

Mallox

imperfect competition or oligopoly or both
land or capital (prob capital in my opinion)
elasticity
national income
costs of production
if 4 of them come up ill be delira ... ive most done but really hope these come up cos there nice handy questions
PS better students tend to answer micro questions because there more scientific and straight to the point where as macro questions such as the state of the economy and its trends can be vague and harder to get full marks in so i would advise doin all the macro questions :D theres my 2 cents

Gi joe!

ynwa_17 wrote: »

If it comes up it'll either be a 35m or a 20m, thus you'd be looking for between 4 and 7 points

This is taken from an economics guide, if anyone wants the link i'll try and find it


A monopolist would use knowledge of PED to indicate whether total revenue will increase or decrease when price is changed. If demand for the product is price inelastic, the monopolist can continue to increase prices until demand becomes elastic and TR begins to fall.

Knowledge of PED will help any producer to decide whether to increase or reduce prices if he wishes to increase total revenue (TR). When demand for a good is price inelastic, an increase in price will lead to an increase in TR, if demand is elastic a seller should decrease price to increase TR.

Knowledge of PED will also allow a producer to examine what will happen to profit if prices are altered. If the demand for a good is price inelastic, then an increase in price will lead to an increase in profit.

Knowledge of PED will also help a producer who is considering increasing the quantity produced. If PED is – 0.8, then if the producer wishes to increase production by 4%, then he must reduce prices by 5% as

%Δ Q = +4 = -0.8
% Δ P -5

Government use PED when deciding on changes in levels of indirect taxation (VAT, customs and excise duties, etc). If the government know that the demand for cigarettes is very price inelastic, then any increase in their price (brought about by an increase in the level of indirect taxation) will lead to increased tax revenue to the State. Governments generally levy taxes on goods they know to be price inelastic in order to increase total tax revenue to the State. The “old reliables” include petrol, alcohol and cigarettes.

Producers may use knowledge of YED when trying to predict future demand for a good. If the economy is predicted to contract by 5% over the coming year, then on average we have 5% less income with which to spend. If the YED for a good is +1, then a 5% fall in income will lead to a 5% decrease in the quantity demanded.

Knowledge of CED will help a producer calculate the increase in the demand for his product as a result of a price increase in a competing product. If CED = +0.9, between Good A and Good B, then a 10% increase in the price of Good A will lead to a 9% increase in the quantity demanded of Good B.





Thats an A1 standard answer, but we all know in the case of Economics this is whats required

Thanks for that, seeing those kind of answers reinforces how unprepared I am:(

I hate the way questions in economics always leave you flustered at a first look , but when you look at the answers you always think:I knew that! Why didn't I think of it at the time!

JSK 252

USES OF ELASTICITES

1. Government Revenue

The government can earn large amounts of indirect tax eg. VAT on goods which have a relatively inelastic demand.

2. Monopoly

Price discriminating firms can charge the higher price to the inelastic demand portion of the market and the lower price to the inelastic demand portion of the market.

3. Firms Considering Expansion

A price elasticity of demand of -1 indicates that a drop in price of 1% would require the seller to sell 10% more. -2 would mean a drop in price of 2% would require the seller to sell 20% more.

4. Maximising Revenues

In order for firms to maximise revenues the following elasticity laws should be adhered to:

Elastic Demand - Lower the price
Inelastic demand - Raise the price
Unitary Elastic demand - Keep the price the same.

dog_pig

JSK 252 wrote: »

USES OF ELASTICITES

1. Government Revenue

The government can earn large amounts of indirect tax eg. VAT on goods which have a relatively inelastic demand.

2. Monopoly

Price discriminating firms can charge the higher price to the inelastic demand portion of the market and the lower price to the inelastic demand portion of the market.

3. Firms Considering Expansion

A price elasticity of demand of -1 indicates that a drop in price of 1% would require the seller to sell 10% more. -2 would mean a drop in price of 2% would require the seller to sell 20% more.

4. Maximising Revenues

In order for firms to maximise revenues the following elasticity laws should be adhered to:

Elastic Demand - Lower the price
Inelastic demand - Raise the price
Unitary Elastic demand - Keep the price the same.

Monopoly came up last year

Économiste Monétaire

K4t wrote: »

Inflation, Interest rate, Unemployment figures, Birth rate, Death rate, Government finances info etc.

The CSO figures are all from a year ago

Inflation: May CPI was -4.7%, HICP -1.7% and CPIX was -1.2%

Which interest rate are you looking for? There is no 'one' interest rate. Are you asking about the ECB main refinancing interest rate (the minimum bid rate on MROs and LTROs)?

The official unemployment figure comes from the Quarterly National Household Survey and that's 7.7% from last October. The seasonally adjusted standardised unemployment rate (SUR) is at 11.8% from last month, it's a pretty good estimate of unemployment and I'd use that one if they ask for the unemployment rate.

This is the last population release.

Government finances for last month are here. Are you looking for debt levels?

JSK 252

dog_pig wrote: »

Monopoly came up last year

I talking about the uses of elasticities to achieve monopoly.

Leggz

Imperfect is apparently bound to come up,its what every1's after learning but Oligopoly cud b with it.
Factore of production:either labour r capital r the 2 tips i got but in my opinion it could be either looking at the current state of the economy nd all that jazz.
Elasticity qe shud b up 2,national income nd prob 2 govt questions.
Wouldnt suprised wit alot of "facts nd figures" type questions.
I'm gna try d veer towards micro though,macro questions take 2 long to answer nd I find they waste alot of time during the exam. Micro questions are more straight forward really:)

K4t

Économiste Monétaire wrote: »

Inflation: May CPI was -4.7%, HICP -1.7% and CPIX was -1.2%

Which interest rate are you looking for? There is no 'one' interest rate. Are you asking about the ECB main refinancing interest rate (the minimum bid rate on MROs and LTROs)?

For LC economics? Yeah

Économiste Monétaire wrote: »

The official unemployment figure comes from the Quarterly National Household Survey and that's 7.7% from last October. The seasonally adjusted standardised unemployment rate (SUR) is at 11.8% from last month, it's a pretty good estimate of unemployment and I'd use that one if they ask for the unemployment rate.

This is the last population release.

Government finances for last month are here. Are you looking for debt levels?

Thanks very much.

Économiste Monétaire

K4t wrote: »

For LC economics? Yeah

The ECB 'interest rate' is at 1%.

K4t

Économiste Monétaire wrote: »

The ECB 'interest rate' is at 1%.

Thanks again.

Gi joe!

Could anyone add to this question as I don't think I have enough

What are the eco consequences of a balance of payments deficit?

1.Income leaked
Affect national income-multiplier lessened-eco contracts

2.Job Losses
Imports greater than exports-domestic production slows-firms close down

3.Nat Debt increases
More foreign borrowing needed to sevice N.D.-gov passes it on to consumer in increased taxation-real income falls

4.External Reserves decreases
Consuming more than producing-ehh

dog_pig

JSK 252 wrote: »

I talking about the uses of elasticities to achieve monopoly.

Monopoly came up last year

k8hm

anyone think elasticity will come up as a separate question to demand/supply? it hasn't come up like that is a few years....but our teacher says she thinks they're trying to make the exam harder by giving demand/supply/elasticity as one question...

xOxSinéadxOx

they put so much in each question these days, I find that I have to rush to have enough time

JSK 252

dog_pig wrote: »

Monopoly came up last year

Your a thick muppet. Read the question asked. IT WAS NOTHING TO DO WITH THE MARKET STRUCTURE OF MONOPOLY. THE QUESTION IMPLIED USES OF ELASTICITIES.

Saul-Good

That's a bit harsh now in fairness

Liam O

xOxSinéadxOx wrote: »

they put so much in each question these days, I find that I have to rush to have enough time

I find that there is plenty of time for questions, I'm going to do 5 longs hopefully. that said, I haven't done anything in economics for about a month so I may have to wing it. Going to study now...

MrPirate

Liam O wrote: »

I find that there is plenty of time for questions, I'm going to do 5 longs hopefully. that said, I haven't done anything in economics for about a month so I may have to wing it. Going to study now...

I was a bit short on time for the mock, but I should be okay on it. I'm like yourself, I haven't done anything in it for a while.. Although my teacher was top-notch; crammed the stuff down our throats. Because of that, I can remember most of the course. ^^

Liam O

MrPirate wrote: »

I was a bit short on time for the mock, but I should be okay on it. I'm like yourself, I haven't done anything in it for a while.. Although my teacher was top-notch; crammed the stuff down our throats. Because of that, I can remember most of the course. ^^

yeah my teacher was very good. Cut down the course so we've basically been studying the same stuff since before the mocks. Should be ok. Need to look back over the multiplier because I messed that up in the mocks and it's easy marks.

MrPirate

Liam O wrote: »

yeah my teacher was very good. Cut down the course so we've basically been studying the same stuff since before the mocks. Should be ok. Need to look back over the multiplier because I messed that up in the mocks and it's easy marks.

We've covered the whole course about 3/4 times in full! Yet he refused to give any sort of predictions; Just "that could come up!" to everything.. <_<

Liam O

MrPirate wrote: »

We've covered the whole course about 3/4 times in full! Yet he refused to give any sort of predictions; Just "that could come up!" to everything.. <_<

really? We went through most of it but when 6th year started there was complete prioritisation given to imperfect comp, capital etc.

xOxSinéadxOx

Does anyone else think it's going to be really hard? I have a feeling they're going to as horrible stuff! and I'm having a little uhoh I'm going to do crap moment. only looking at my book now for the first time in well over a month

ynwa_17

xOxSinéadxOx wrote: »

Does anyone else think it's going to be really hard? I have a feeling they're going to as horrible stuff! and I'm having a little uhoh I'm going to do crap moment. only looking at my book now for the first time in well over a month

Yeah it's either gonna be really hard or quite an easy paper. I've gotten to a point where i couldnt care less anymore, and have decided to focus on Demand, Supply, Elasticity and Imperfect competition because thats bound to be two questions there


My Predictions for tomorrow, lets hope i get them spot on like Accounting

1. Demand and Possibly Diminshing Marginal Utility
2. Imperfect competition with a comparison between it and Monoploy and Perfect competition
3. Elasticity
4. Capital as a FOP, maybe with a combination of Land
5. National Income
6. International Trade
7. The Government - Monetary and Recession
8. Current Affairs ie employment, inflation banks create credit.

GVNDNN

ynwa_17 wrote: »

Yeah it's either gonna be really hard or quite an easy paper. I've gotten to a point where i couldnt care less anymore, and have decided to focus on Demand, Supply, Elasticity and Imperfect competition because thats bound to be two questions there


My Predictions for tomorrow, lets hope i get them spot on like Accounting

1. Demand and Possibly Diminshing Marginal Utility
2. Imperfect competition with a comparison between it and Monoploy and Perfect competition
3. Elasticity
4. Capital as a FOP, maybe with a combination of Land
5. National Income
6. International Trade
7. The Government - Monetary and Recession
8. Current Affairs ie employment, inflation banks create credit.

I can only pray your predictions are right :pac:

CallMeDoctor

i thought dat was a nice exam. I got 88 % in the mocks but reli needed the A1 this time.
Q1. I thought it was good but was a bit indecisive between PED for pertol and YED for meat ..
Did anyone say -0.1 for PED for petrol?
(c)....Anyone get 80000 sales ??
Q2. Really easy did ye agree wit part C?
Q3. Brillant .
Q5. Bit of waffle but anyone get 1.11 for multiplier?

Funnily enuf i taut the short questions were the hardest part of the exam!!!

ynwa_17

CallMeDoctor wrote: »

i thought dat was a nice exam. I got 88 % in the mocks but reli needed the A1 this time.
Q1. I thought it was good but was a bit indecisive between PED for pertol and YED for meat ..
Did anyone say -0.1 for PED for petrol?
(c)....Anyone get 80000 sales ??
Q2. Really easy did ye agree wit part C?
Q3. Brillant .
Q5. Bit of waffle but anyone get 1.11 for multiplier?

Funnily enuf i taut the short questions were the hardest part of the exam!!!

-0.1 was definitely petrol. -1.6 Meat, and +4.3 iphones
Ya i got 80000 sales, seemed too easy though, i did it in 30 seconds, with an explanations and workings
Ya i agreed with C - Price Wars, Brand Proliferation, Competitive Advertising as reasons
I did Q4, messed me up but ill get over it

xOxSinéadxOx

wahheyyy I think I got those elasticites right. I was bit worried in the exam cos there was a lot of marks going for them and they're a bit hit and miss, you could end up with no marks!

I disagreed with the market structure too, can't believe I didn't think of enough reason, I think I only had 3 and one of them was a stupid one

Pixiesticks

CallMeDoctor wrote: »

i thought dat was a nice exam. I got 88 % in the mocks but reli needed the A1 this time.
Q1.Did anyone say -0.1 for PED for petrol?
(c)....Anyone get 80000 sales ??.
Q5. Bit of waffle but anyone get 1.11 for multiplier?

I got 80000 sales and 1.11 multiplier and -0.1 for petrol =D

internetaddict

Pixiesticks wrote: »

I got 80000 sales and 1.11 multiplier and -0.1 for petrol =D

I've a feeling i got 20000 sales and I'm not sure why..:eek:


I got others

CallMeDoctor

internetaddict wrote: »

I've a feeling i got 20000 sales and I'm not sure why..:eek:


I got others

Ya 20000 is rite for the fall in sales and den u jus minus it from 100000 :pac: