Economics lets help

Jiggy · 14-06-2008 3:44pm #1

So im just gonna steal this idea from another thread on physics cause well it's a good idea and what not

Ill start off with an economics question whoever answers then asks a new question and so on and so forth.

State 3 functions of the ECB (european central bank)?

Soby · 14-06-2008 3:54pm

Implement monetary policy, manage external reserves + carry out foreign exchange ops...

State 4 factors affecting a consumers behaviour

Peleus · 14-06-2008 3:55pm

oh god, ehhh.
decide interest rates
give money to banks when they have liquidity problems?

...no idea

state the law of comparative advantage and state who put this law forward.

Peleus · 14-06-2008 3:56pm

Soby wrote: »

State 4 factors affecting a consumers behaviour

should that be assumptions of consumer behaviour or are you talking about reasons why consumers buy goods????

armbruster · 14-06-2008 3:58pm

comp adv

states that a country should specialise in the production of those good which it is relatively efficient and obtain its other requirements/good through international trade.

This way more wealth will be produced and the world is better off.

David Ricardo.

DEFINE THE PUBLIC SECTOR BORROWING REQUIREMENT

hahahahahahahahah!

Peleus · 14-06-2008 4:01pm

armbruster wrote: »

DEFINE THE PUBLIC SECTOR BORROWING REQUIREMENT

hahahahahahahahah!

I dont know what this means but i know it's the Exchequer Borrowing Requirement plus all borrowing by semi state bodies and local authorities.

explain the relationship between average revenue and marginal revenue!

The LeavyC · 14-06-2008 4:03pm

Q "DEFINE THE PUBLIC SECTOR BORROWING REQUIREMENT"

Financing the exchequer borrowing requirement(current budget deficit + capital borrow) + semi state bodies + local authorities borrowings.

Q: The purchasing power parity theory states:

Peleus · 14-06-2008 4:10pm

Q: The purchasing power parity theory

something thats really hard to say over and over.

emm, do you think it's possible to get like 60% in economics by Just learning Micro inside out and then doing a tiny bit of CPI, Comp advantage and a bit of National Income, and maybe a few short question definitons??? cos i only have like 1 and a half days to study for economics and thats all i really know. is it possible to get over 60% with just that?

cHaTbOx · 14-06-2008 4:29pm

Peleus wrote: »

Q: The purchasing power parity theory

something thats really hard to say over and over.

emm, do you think it's possible to get like 60% in economics by Just learning Micro inside out and then doing a tiny bit of CPI, Comp advantage and a bit of National Income, and maybe a few short question definitons??? cos i only have like 1 and a half days to study for economics and thats all i really know. is it possible to get over 60% with just that?

Yeah you get at around 3 questions a year with micro and by looking at the trend you can study what you need for macro.

Do all the short questions(25%) again and you're set.

irishbucsfan · 14-06-2008 4:33pm

The LeavyC wrote: »

Q: The purchasing power parity theory states:

Purchasing power parity theory states that the exchange rate between one currency and another is in equilibrium when their domestic purchasing power is the same.

Anyways, I just answered that question so i could say: Stealing my quoz idea eh? Ill let it slide this time. This time.

Q: The Canons of taxation

Edit: alright thats a statement, so EXPLAIN the canons of taxation

cHaTbOx · 14-06-2008 4:44pm

The canons of taxation are
1.Economic (cost effective, meaning it should cost less to collect the taxes than the tax revenue)
2.Equity (fair taxation in terms of horizontal and vertical equity)
3.certainty (people should know how and when to pay) 4.Convenience ( simplicity or ease )

The supply price of a factor of production?

The LeavyC · 14-06-2008 4:50pm

not so sure about your answer for purchasing power parity theory...
its " in the absence of non price barriers to international trade, the price of a good should be the same in all markets that have an exchange rate mechanism between them"

the canons are something like(2e's to c's):
it must be Economic, ie not cost more to collect than it brings in
it must be Equitable, ie it is based on ability to pay
must be Certain, people must know when and how much will be due
must be Convenient, should be convenient for the taxpayer

The LeavyC · 14-06-2008 4:52pm

also on about what to learn, there is normally 3 micro, apparently maybe 4 this year? who knows though. So if i were you i'd learn the micro(maybe leave out perfect competition?) and do the short questions that have come up over the last 6 years or so. they repeat a little a bit and they're really the easiest place to get marks i think.

cHaTbOx · 14-06-2008 5:00pm

The LeavyC wrote: »

also on about what to learn, there is normally 3 micro, apparently maybe 4 this year? who knows though. So if i were you i'd learn the micro(maybe leave out perfect competition?) and do the short questions that have come up over the last 6 years or so. they repeat a little a bit and they're really the easiest place to get marks i think.

Exactly what im doin but im also doin a bit on trade

The LeavyC · 14-06-2008 5:29pm

Define the tax wedge:

cHaTbOx · 14-06-2008 5:51pm

the tax wedge is defined the differance between what it costs to employ a person and that employ's net pay after deductions for income tax,Prsi and levies.

the broad money supply (M3) means?

The LeavyC · 14-06-2008 5:55pm

its all the money in circulation, ie notes and coins in the hands of the public, in current bank accounts in licensed banks and deposit accounts and in the interbank market

What is the difference between economic growth and economic development?

superLeetive · 14-06-2008 5:59pm

Economic Growth is when the GNP level in the economy is increasing but there are no fundamental changes in the structure of society where as economic development is when the GNP of the economy is increasing while fundamental changes are taking place in the structure of society.

Q) Define Consumer Surplus.

Peleus · 14-06-2008 6:00pm

The LeavyC wrote: »

What is the difference between economic growth and economic development?

economic growth is the increase in the production of goods and services without a fundamental change in the structure of the economy.

economic development is the increase in the production of goods and services which involves a fundamental change in the structure of the economy.

I think.... might be a bit off with the wording...

state the relationship between AC and MC.

what are the conditions necessary for profit maximisation?

cHaTbOx · 14-06-2008 6:04pm

Economic development is the increases in output per worker,accompanied by changes inthe structures of society.
Economic growth is the increases in output per person ,not accompanied
by changes inthe structures of society.

what does the effective incidence of tax mean?

Peleus · 14-06-2008 6:08pm

random chatbox wrote: »

Economic development is the increases in output per worker,accompanied by changes inthe structures of society.
Economic growth is the increases in output per person ,not accompanied
by changes inthe structures of society.

what does the effective incidence of tax mean?

the effective incidence of tax means who actually pays the tax. It is the people that are affected by the tax and who are obliged to pay it.

superLeetive wrote: »

Q) Define Consumer Surplus.

can exist in the purchas of a good or service. It is the difference in what the consumer expected to pay and what (s)he actually paid. for example, a person expects to pay €50 for a bike but buys it for €35. he has a consumer surplus of €15!!!!

superLeetive · 14-06-2008 6:13pm

Peleus wrote: »

state the relationship between AC and MC.

what are the conditions necessary for profit maximisation?

When MC<AC then AC is falling

When MC>AC then AC is rising

When MC=AC then AC remains constant

Conditions for profit maximisation is when MC=MR

superLeetive · 14-06-2008 6:20pm

Q) Explain Limit Pricing

Timans · 14-06-2008 6:20pm

Peleus wrote: »

the effective incidence of tax means who actually pays the tax. It is the people that are affected by the tax and who are obliged to pay it.

can exist in the purchas of a good or service. It is the difference in what the consumer expected to pay and what (s)he actually paid. for example, a person expects to pay €50 for a bike but buys it for €35. he has a consumer surplus of €15!!!!

I don't think you'd get full marks for that def of Consumer Surplus.

It's:

The difference between the actual price of a good and the price a consumer is willing to pay rather than go without the good.

I think you may lose marks if you don't include the bold part.

cHaTbOx · 14-06-2008 6:32pm

Timans wrote: »

I don't think you'd get full marks for that def of Consumer Surplus.

It's:

The difference between the actual price of a good and the price a consumer is willing to pay rather than go without the good.

I think you may lose marks if you don't include the bold part.

Yeah you're right

cHaTbOx · 14-06-2008 6:36pm

superLeetive wrote: »

Q) Explain Limit Pricing

in an oligopolistic market ,suppliers may charge a lower price than they could charge in order to discoarage new firms from entering the market.

The 'black economy ' is defined as:

superLeetive · 14-06-2008 6:39pm

random chatbox wrote: »

The 'black economy ' is defined as:

The buying and selling of goods or services without declaring them for tax purposes.

eg: nixers

Q) Define Economic Rent

cHaTbOx · 14-06-2008 6:51pm

superLeetive wrote: »

Q) Define Economic Rent

Economic rent a payment to a factor of production in excess of its supply price.

Define the law of the equi marginal utility

superLeetive · 14-06-2008 6:57pm

random chatbox wrote: »

Define the law of the equi marginal utility

As a person consumes more and more units of a good, the marginal utility of each additional unit eventually begins to fall or diminish.

Q) Define MPS

postalservice · 14-06-2008 7:00pm

The proportion of additional income that is saved.

How can banks create credit?:p

bUILDERtHEbOB · 14-06-2008 7:06pm

postalservice wrote: »

The proportion of additional income that is saved.

How can banks create credit?:p

I'm going to try and bull**** this...

When they receive deposits they decide that at any time the customer will withdraw no more than 10% and therefore they use this as the basis to create their loans.

If a customer deposits €1,000, they take €100 of that and keep it to cover that customers withdrawls and they use the other €900 to cover the loans that they will give out. With €900 they can cover 9 loans of €1,000 therefore enabling them to create €9,000 of credit.

postalservice · 14-06-2008 7:09pm

Can we just write the formula thing in the exam and get full marks

Inc in cash dep by 1/brr??

any1 know 4 sure?

ian.f · 14-06-2008 7:11pm

random chatbox wrote: »

Define the law of the equi marginal utility

superLeetive wrote: »

As a person consumes more and more units of a good, the marginal utility of each additional unit eventually begins to fall or diminish.

That's Diminishing marginal returns and I wouldn't use the words utility or diminish in a definiton of it !:cool:

The law of Equi-marginal Returns states that the ratio of marginal utility to price of all goods bought by a consumer must be equal in order for a consumer to be maximising utility

superLeetive · 14-06-2008 7:12pm

postalservice wrote: »

Can we just write the formula thing in the exam and get full marks

Inc in cash dep by 1/brr??

any1 know 4 sure?

We never learnt a formula for that? If it says "Explain" then you have to give the whole thing. I'd give it anyway cos that Q can often be worth as much as 18 marks and you don't want to risk losing most of them.

orangetictac · 14-06-2008 7:14pm

The marking scheme gives 18/18 for just the formula!!
But i'll give both just incase the corrector is nicht so gut

bUILDERtHEbOB · 14-06-2008 7:14pm

Are there many just learning Micro?

superLeetive · 14-06-2008 7:16pm

ian.f wrote: »

That's Diminishing marginal returns and I wouldn't use the words utility or diminish in a definiton of it !:cool:

The law of Equi-marginal Returns states that the ratio of marginal utility to price of all goods bought by a consumer must be equal in order for a consumer to be maximising utility

It's actually the Law of Diminishing Marginal Utility- we were both wrong:p

We don't have to "define" it though, we have to "state" it so therefore you give the law as it is written.

superLeetive · 14-06-2008 7:17pm

bUILDERtHEbOB wrote: »

Are there many just learning Micro?

Nah..gonna learn a bit of macro as well.

cHaTbOx · 14-06-2008 7:19pm

bUILDERtHEbOB wrote: »

Are there many just learning Micro?

I am learning micro and all short questions plus Trade questions(nation income and multiplier,comparitive advantage and so on)

postalservice · 14-06-2008 7:20pm

random chatbox wrote: »

I am learning micro and all short questions plus Trade questions(nation income and multiplier,comparitive advantage and so on)

That plus banking for me.
Hopefully Costs comes up....so easy:p

and maybe a bit of ldc's etc

Timans · 14-06-2008 7:20pm

ian.f wrote: »

That's Diminishing marginal returns and I wouldn't use the words utility or diminish in a definiton of it !:cool:

The law of Equi-marginal Returns states that the ratio of marginal utility to price of all goods bought by a consumer must be equal in order for a consumer to be maximising utility

No, it's the Law of Diminshing Marginal Utility.

LDMU - This states that as a consumer consumes additional units of a commodity, then the additional utiltiy gained from each additional unit will eventually begin to decline once the origin has been reached.

LDMR - This states that as increasing quantities of a variable FOP are applied to a fixed quantity of another FOP, the return to the original variable FOP will eventually begin to decline.

postalservice · 14-06-2008 7:26pm

What are bills of exchange?

Peleus · 14-06-2008 7:26pm

can anyone help me on this question:

something like... a price descriminating monopolist produces on the home and foreign markets. show the MR and AR curves for the firm on both markets and the equilibrium position for this firm. somthing like that. I never get it right.

postalservice · 14-06-2008 7:29pm

Id say get the marking scheme answer(I think it came up in 1 of last 8 yrs)

because the book is confusing imo

Timans · 14-06-2008 7:33pm

I'm pretty sure that's just the Long Run Equilibrium Diagram of a PDM.

It's like a Monopoly Diagram and a PC Diagram in one. Because, the Domestic Market is a Monopoly and the Export Market is a PC.

Fuascailt · 14-06-2008 7:41pm

Peleus wrote: »

can anyone help me on this question:

something like... a price descriminating monopolist produces on the home and foreign markets. show the MR and AR curves for the firm on both markets and the equilibrium position for this firm. somthing like that. I never get it right.

Get the marking scheme cos the diagram in the book is crap. It came up in 2000. Its simple in the marking scheme.

Q. Outline the factors effecting demand for a product.

postalservice · 14-06-2008 7:42pm

What are bills of exchange?

Fuascailt · 14-06-2008 7:48pm

I dont really think we need to know. Something to do with foreign exchange? Just know that the ban keeps about 12% of their assets in exchequer bills and bills of exchange and that their liquid but not very profitable.

JSK 252 · 14-06-2008 7:55pm

Peleus wrote: »

can anyone help me on this question:

something like... a price descriminating monopolist produces on the home and foreign markets. show the MR and AR curves for the firm on both markets and the equilibrium position for this firm. somthing like that. I never get it right.

The firm faces a downward sloping AR/MR curve in the home market as it is a monopolist; and faces a horizontal AR/MR curve abroad as it is a price taker. Output at home should cease at H units since any additional MR revenue beyond H would be sold for a greater price in the export market. We assume cost conditions are identical in both markets. Total output for both markets is where MC=MR i.e T units, therefore T - (minus) H units are sold abroad. Price discrimation occurs as the price in the home market i.e PH is higher than the export price i.e PX

postalservice · 14-06-2008 7:55pm

cool thanks!
Better go study economics now!
Tonight will be my last night at it until tuesday night(i have acc and phy)
....and app maths friday!

ian.f · 14-06-2008 8:04pm

superLeetive wrote: »

It's actually the Law of Diminishing Marginal Utility- we were both wrong:p

We don't have to "define" it though, we have to "state" it so therefore you give the law as it is written.

ah thatss embarassing for me, I had typed in LDMU and everything.. just got confused, thats my excuse and I'm sticking to it

Economics lets help

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