!! Economics 2015 ... predictions, guesses and discussion.

is mise spartacus

RoRo979 wrote: »

someone pop up a pictures of answer for examcraft mock please on q)
2b
4aii
5aii, 5bi, 5c
7c

would be very grateful

Sorry if it's difficult to see

RoRo979

Cynthia Juicy Idiot wrote: »

The Law Of Comparative Advantage is really bumming me out, I don't understand it. We never did it in school and I don't get what it's about. And its looking likely tomorrow.

Can anyone explain it to me really simply and the terms of trade thing? Think of it as revision for yourself

2008 q5a

i) state the law = defination = easy marks
ii) Sounth korea is 3 times more efficient at producing clothes than tv's. China is twice as good at producing clothes than tv's. Therefore South Korea should specialise in the production of clothes.

South korea now produces 60 clothes and 0 tv's
china now produces 0 clothes and 40 tv's

Originally total clothes out was 70, now it is 60.
therefore production of clothes has gone down 10 units = -14.3%

originally tv = 30, however now its 40.
production gone up 10 = +33.3%

the positive gain in 33.3% in tv's outweighs the -14.3% in clothes.
Everyone gains

Sorry if it's difficult to see
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hero thanks alot

is mise spartacus

is mise spartacus wrote: »

Sorry if it's difficult to see

Some more

if832uspx4eogt

Thanks so much !

RoRo979

Cynthia Juicy Idiot wrote: »

Thanks so much !

sorry forgot about terms of trade.

South korea: 1 unit clothing = 10/30 tv = 1/3 unit of tv
1 unit tv = 30/10 = 3 units of clothing

China: 1 unit of clothing = 20/40 tv = 1/2 units of tv
1 unit tv = 40/20 = 2 units of clothing

therefore terms of trade =
1 unit of clothing should cost between 1/3 and 1/2 of a unit of a tv
1 unit of a tv should cost between 2 and 3 units of clothing

oktplz

What's the current inflation rate? There seems to be a few different ones here.

RoRo979

oktplz wrote: »

What's the current inflation rate? There seems to be a few different ones here.

is is definately -0.3% from may 2014 to may 2015.

is mise spartacus

oktplz wrote: »

What's the current inflation rate? There seems to be a few different ones here.

Annual rate in 2014 was 0.5%
May 2015 was -0.30% (deflation)
Therefore the inflation rate here averaged 4.93% from 1976 until 2015

leavingcert15

RoRo979 wrote: »

someone pop up a pictures of answer for examcraft mock please on q)
2b
4aii
5aii, 5bi, 5c
7c

would be very grateful

statistics
gdp  45,619 Q4 2014 yearly +4.1%
GNP 39,336 Q4 2014 yearly +6.3%
exports 9,303 Apr 2015 yearly +36.3%
BOP 3,718Q4 2014 yearly +879
unemplymet 9.8 May 2015 yearly -16.2%
CPI May 2015 yearly difference of -0.3%



posting figures by themselves is relatively useless, When did they come out? are they seasonally adjusted? what is the trend of them?

Is balance of payments 3718m for last year?

DarraghF197

I'm finding it nearly impossible to drill in the functions of the ECB, IMF and World Bank for some reason! They just refuse to stick in my head.

Anyways, for some reason I've a bad feeling about this exam. I feel like they're going to throw up PES and mix Money and Banking with National Income or Population with international trade. Hopefully four micro questions will come up, with nothing that hasn't been on the exam papers yet!

is mise spartacus

leavingcert15 wrote: »

Is balance of payments 3718m for last year?

Source CSO:
The Balance of Payments current account surplus in the fourth quarter of 2014 was €3,718m. The current account surplus for 2014 was €11,467m, an increase of €3,834m on 2013

DarraghF197 wrote: »

Anyways, for some reason I've a bad feeling about this exam. I feel like they're going to throw up PES and mix Money and Banking with National Income or Population with international trade. Hopefully four micro questions will come up, with nothing that hasn't been on the exam papers yet!

I thought PES was pro evolution soccer :pac:

Kat97

All the statistics I know are from March, it that okay or do they need to be more recent? :O

is mise spartacus

Kat97 wrote: »

All the statistics I know are from March, it that okay or do they need to be more recent? :O

Unfortunately they need to be as recent as possible ...

examstress

Anyone have anything they feel is worth looking over last minute, like certain definitions and stuff that they have a feeling could pop up ! Would really appreciate it !

DarraghF197

examstress wrote: »

Anyone have anything they feel is worth looking over last minute, like certain definitions and stuff that they have a feeling could pop up ! Would really appreciate it !

Just a few things off the top of my head. Although I'm not really making any predictions for it.

Price Discrimination.
Marginal Efficiency of Capital. And all Capital related stuff, really.
Functions of the ECB.
I'd advise looking over the Economists but that does take a lot of time.
Effects of Economic Growth.
Effects of devaluation of Euro.
Effects of QE.

Daire234

Is it worth the time going over short questions in the exam papers or would I be better off going over the main chapters individually? It seems like the short questions can't really be predicted imo.

Kat97

is mise spartacus wrote: »

Unfortunately they need to be as recent as possible ...

Crap okay thanks will have a look at the cso website!

if832uspx4eogt

I have a feeling we're gonna get this for micro:

- A Supply question (50) and Price Elasticity of Supply (25)
- Costs of Production
- Perfect Competition, compare it to Imperfect & Monopoly
- Capital with the Liquidity theory

LeeLee97

Praying that elasticity doesn't feature on the long questions this year. Never did it and i'm not going to start now.

if832uspx4eogt

Also praying no economic thinker comes up, they all blend into one for me!

DarraghF197

Cynthia Juicy Idiot wrote: »

I have a feeling we're gonna get this for micro:

- A Supply question (50) and Price Elasticity of Supply (25)
- Costs of Production
- Perfect Competition, compare it to Imperfect & Monopoly
- Capital with the Liquidity theory

I think Oligopoly is extremely likely this year. It makes a lot of sense if they have Perfect Competition mixed with Monopoly next year, with Price Discrimination also.

Yeah I've a strange feeling that Price Elasticity of Supply will come up for question 1. But I expect Demand to make up the rest of it.

Capital looks like a good bet. They might ask the effects of low interest rates in that also. Thinking Savings or Investment to make up most of it.

leavingcert15

What's the current interest rates?

DarraghF197

leavingcert15 wrote: »

What's the current interest rates?

It's like 0.1%. Really low anyways, and will remain like that for a good while.

if832uspx4eogt

Effects of low interest rates....

1) Less savings in banks
2) Encourages investment and hence creates employment, stimulates economic growth...

Im confused, what could you say for that question?

Also, I think something about the weak euro could come up.

irishlad12345

think water charges will come up as a tax question like is it regressive/progressive something like that :P

DarraghF197

Cynthia Juicy Idiot wrote: »

Effects of low interest rates....

1) Less savings in banks
2) Encourages investment and hence creates employment, stimulates economic growth...

Im confused, what could you say for that question?

Also, I think something about the weak euro could come up.

To add to that:

-Decreased mortgage repayments.
-Decreased cost of servicing National Debt.
-Decrease revenue from DIRT, while increased revenue from VAT.

RoRo979

Kat97 wrote: »

All the statistics I know are from March, it that okay or do they need to be more recent? :O

ir really depends on the statistic, unemployment and inflation should be most recent (may), if you look at the stats i put up they are the most recent valid ones for the main things.

What's the current interest rates?

0.05%

Effects of low interest rates....

- more borrowing
- less saving
- economic growth
- employment
- inflation
- tax revenue( less dirt but more in vat + less social welfare)

think water charges will come up as a tax question like is it regressive/progressive something like that

indeed it is regressive tax
arguments in favour:-
- better infrastructure
- more efficient use
- many other eu countries have it
- employment
- source gvt revenue

against:
- increased tax to pay
- oppertunity cost
- regressive tax
- civil unrest
- decrease aggregate demand

leavingcert15

What are the effects of quantitive easing?

irishlad12345

http://www.economicsleavingcert.com/

RoRo979

leavingcert15 wrote: »

What are the effects of quantitive easing?

- increased lending due to increased cash deposits
- interest rates: due to increase in supply of money IR rates may drop thus increasing investor confidence
- increased aggregate demand
- encourage eco growth
- employment
- inflation: if money supply grows faster than supply of goods