Eco question (1 Viewer)

[Zak Ambrose]

1. - $A appreciation > improved export income and lower import expenditure in the short run will improve the BOGS.
- in the long run export income will deteriorate and import expenditure will increase due to reduced international competitiveness > deteriorate BOGS.

2. no idea - i know since around March employee's and employers could not make or vary AWA's.

3. factor market - market where the 4 factors of production are bought and sold. e.g. labour market.
product market - market where the output of the product markets are bought and sold. e.g. exports/imports.

i think someone will give a much much better definition for you.

4. yep

7. use the equation for finding real GDP

8. think of net capital inflow as all the money flowing into Australia

9. D - 700. Y = C + I.
Y = 100 + 0.8Y + 40
rearrange to get Y=700

 

[Zak Ambrose]

10. D as Y = C + I

11. Y = C + I + G - M + X
200 = 50 + 20 + 40 - 30 + X
200 = 80 + X
X = 120

C


12. process of elimination. b is just wrong. a and c may be right using "pub" theory. but d is the only one that really works.

17. tax concessions - like the current solar panel rebates, free installation, etc

 

[aero135]

Guys the answer is D! Sorry forgot to put it in - my bad!

Ummmm dude that got it please explain. Also, mate i respect you need help but can u please not do it in my thread thanks!

 

[bmn]

Guys the answer is D! Sorry forgot to put it in - my bad!

Ummmm dude that got it please explain. Also, mate i respect you need help but can u please not do it in my thread thanks!

D is not right - your book or w/e is wrong.

But, even though D is wrong, its still the "most correct" because A, B, and C cancel each other out (look at the patterns)

 

[ijaz101]

Hi Guys, I TOO have a question but not a specific past paper question.

Does anyone know the difference between the Capital Account and the Net Transfers category of the Current Account in the Balance of Payments?? Both involve Foreign Aid. I understand Current Account pretty thoroughly but I've never really understood what the Capital Account is all about.

Does the Capital account refer to capital as in One of the Four Factors of Productuon - 'products that allow the production of other goods/services'??

Cheers

 

[Zak Ambrose]

Hi Guys, I TOO have a question but not a specific past paper question.

Does anyone know the difference between the Capital Account and the Net Transfers category of the Current Account in the Balance of Payments?? Both involve Foreign Aid. I understand Current Account pretty thoroughly but I've never really understood what the Capital Account is all about.

Does the Capital account refer to capital as in One of the Four Factors of Productuon - 'products that allow the production of other goods/services'??

Cheers

i'll explain this tomorrow after i fail my modern history exam. but im sure someone else such as gnrlies will easily explain it tonight.

 

[ijaz101]

Hi Guys, I TOO have a question but not a specific past paper question.

Does anyone know the difference between the Capital Account and the Net Transfers category of the Current Account in the Balance of Payments?? Both involve Foreign Aid. I understand Current Account pretty thoroughly but I've never really understood what the Capital Account is all about.

Does the Capital account refer to capital as in One of the Four Factors of Productuon - 'products that allow the production of other goods/services'??

Cheers

Came across another issue. For Terms of Trade (in the Riley textbook)(Page 113), the base year for the Export Price Index and the Import Price Index is 1989-90, while the base year for the Terms of Trade is 2003-04 (they have pointed that out). Now, in 2003-04 the ToT is 100 while the Export Price Index is 102.5 and the Import Price Index is 112.3 and putting those figures in the ToT formula will not give 100... So what gives? I know we're not meant to go that in depth into these things, but it doesn't make sense to me.

Why are the base years different in the first place?

 

[jlo23]

9. D - 700. Y = C + I.
Y = 100 + 0.8Y + 40
rearrange to get Y=700

why does Y=C+I
i get how you subst the 700 in
but is it because there is no other info
or should i know that formula???