Econ200 (1 Viewer)

[gnrlies]

Yeah im doing some study for that too.

I'd love some multi choice practice questions.

Looks like im just gonna have to go through workouts all day tommorow

 

[Sweet_Lemon]

A COPY OF LAST YR MID QUIZ (if anyone forgot to print it)

Lol

 

[toknblackguy]

ive got a question
lecture 9 page 11

why was no conclusion drawn from the PQI?
isn't it is PQI <=1
PtXt <= PtXb and so Xb RP Xt ?

and from the LPI, if >=1,
PtXb >= PbXb so can't we conclude that prices have risen?

 

[gnrlies]

ive got a question
lecture 9 page 11

why was no conclusion drawn from the PQI?
isn't it is PQI <=1
PtXt <= PtXb and so Xb RP Xt ?

No...

Because current consumption at current prices is cheaper than base consumption at current prices. Therefore we cannot afford base consumption.

Because we cannot afford base consumption, nothing is RP. If we cant afford it we cant deduce that anything is RP.

The rules are that if the PQI > 1 then we can infer a RP because one is prefered to the other whilst both goods can be afforded.

and from the LPI, if >=1,
PtXb >= PbXb so can't we conclude that prices have risen?

again:

if base consumption at current prices is more expensive than base consumption at base prices we cant infer anything as this says nothing about two different consumption bundles (as only one consumption bundle is being looked at).

In order to infer a RP you need to look at the LPI's relationship to Mt / Mp.

 

[toknblackguy]

thanks
i think i get it!
good luck today

 

[gnrlies]

How did everyone go?

I thought it was fairly strange that the questions were somewhat familiar to the previous year's exam.

 

[toknblackguy]

hahaha
i think they even used the same question order as last year!
when are results expected?

 

[gnrlies]

hahaha
i think they even used the same question order as last year!
when are results expected?

that I would like to know!

 

[toknblackguy]

yay
results are out
and for anyone curious, i've attached a spreadsheet in the zip

 

[Sweet_Lemon]

Test 2 past paper, anyone looked at it? Who knows how to solve Q14 & 24?