2008 H2 ECONS CASE STUDY

Downloads, PC, hard drive. This is inline with market forces where excess DD for yuan due to trade surplus creates upward pressure on the forex rate of yuan. Hence a fall in prices of. Impact of developments in modern technology on recorded music and associated products will depend on the relationship whether substitutes or complements ie direction of DD changes and their closeness the extent of DD shift. Answers to Exam December … Documents. We do not know how the countries have performed in trade in services. Body Explain a variety of market structures:

For answers that are very descriptive and only able to show the link between barriers to entry and. Using Extract 1 and 2: This is inline with market forces where excess DD for yuan due to trade surplus creates upward pressure on the forex rate of yuan. Students will have to consider the impact on two markets ie recorded music and associated products rather than to consider them as one Developments in modern technology implies a rise in SS SS shifts right and hence falling prices of iPods and MP3 players Impact on recorded music: CSQ2 a i It appreciated. Which raises the question is this a good idea?

Explain that there is a range etudy market structures. Q2 Firms pricing and output decisions depend on barriers to entry and the behavior of competitors a Explain why barriers to entry are a key determinant in firms pricing decisions. The demand for recorded music will rise DD shifts right by a large extent.

2008 h2 econs case study

It could also lead to economies of scale in production. In addition, this new pipeline meant that it is now more responsive for the quantity supplied to react to changes in price. This resulted in the PPC not only growing but changing shape. The view is that sudden exchange rate changes especially cuts are inflationary and destabilising.

As a result the actual comparative advantage in some labour intensive manufactured goods was manipulated to favour import substitution even by firms with little if any comparative advantage.

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Answers to H2 Economics 2008 GCE a Level Exam

How close these substitutes are and hence the extent of the fall in DD will depend on: So concept of Exy will be relevant here. Introduction – A brief explanation of how market forces can achieve allocative efficiency – Highlight the right assumptions for the price mechanism to work hh2 – The equilibrium outcome of the perfect market would meet the conditions required ie.

Introduction – Economic efficiency comprises – Productive efficiency? However, the appreciation is very marginal. If this effect is strong, than the govt might consider supplementing FP with MP. Besides casing BOP problems for USA and countries in the EU, rising value of imports which exceed exports will cause rising unemployment in these countries structural unemployment. CED of electricity and other fuels is positive?

Telecommunication companies having market power as a result of imperfect information and immobility ceons factors of production – Eg. If price of natural gas remains below price of electricity, natural gas consumers may not switch to electricity.

Not a case of dumping. We export tourism to Australia and import it from Australia, but the exports and imports are clearly very different, and so are logically ecnos by exploitation of mutually advantageous trade opportunities.

2008 h2 econs case study

Introduction Define and explain both actual and potential economic growth y2 use AD-AS model or PPC Explain how actual and potential economic growth may be achieved increasing the components y2 AD for actual growth and quality and quantity of resources for potential growth Ecoons Thesis Explain how each of the caxe macroeconomic policies may encourage actual and potential growth.

This begs cae question which you must address of where does the improved current account performance come from and how can policy influence it? Depends on governments to overcome the costs of globalisation. Thus, the protection measure by India is not economically justified. In addition, with greater competition, the market structure can evolve from one that is oligopolistic in nature to one that veers toward monopolistic competition.

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Policies directed at the capital account could include interest rate policy, taxation policy related to FDI and complementary infrastructure and other S-side policies such as employer CPF levels. Body Explain a variety of market structures: While explaining how the various policies may encourage actual and potential growth, the answer should also address potential limitations of the various policies and also the constraints of the nature of the economy.

Evaluate that this is not the reason: The implication is that the DD rise DD shifts right and hence qty will rise by a more than proportionate amount. PED of electricity is negative Law of Demand?

Answers to H2 Economics GCE a Level Exam

However, there remains economic inefficiency in the market econx to relatively small number of energy firms in the market and the business strategies employed.

Hence a fall in prices of iPods, MP3 players will increase the DD for recorded music since they are close complements. Holding other factors constant, an increase in price of electricity will result in a significant change in quantity demanded of electricity – Using concept of CED?

Produce goods and services in line with CA rather than protecting weaker industries and generating productive inefficiency.