Sunday 27 October 2013

Go through the Link, It will help you to understand about Obamacare(Reasons for recent US Govt. Shut down) and its impact on the economy as a whole!!!!

Diwali Vacation Home Work for Grade VIII-E

Question 1:
Read the following Case Study and answer the following Questions:

A GERMAN TRAVEL COMPANY CONSIDERS ITS FUTURE

A German travel company decides to stop selling holidays in Italy and instead to offer holidays in a new destination. This is the Maldives, a group of island in the Indian Ocean, famous for their long hours of sunshine and sandy beaches.
Tourism is a fast growing industry. Not all families, however, are able to go on holidays whether at  home or abroad. Most of those who take holidays would like to have more holiday breaks.

a  1. What evidence is there in the passage of scarcity?                      (3)
    2.  Using examples identify three factors of production involved in providing holidays in the Maldives?                                                            (6)
c  3. (i) Explain the difference between economic goods & free goods.   (4)
(ii) Identify a free goods from the passage.                                   (1)

d  4.     Explain the relevance of opportunity cost for a travel firm in deciding how to use its resources.                                                                   (6)


Question 2:
A.     Using the information given in the table below, fill in the blanks and Show your calculations for the following:                                                                         [10]
     (a) Fixed cost for 0 units of output per week.
     (b) Variable cost of 6 units of output per week.
     (c) Total cost of 3 units of output per week.
     (d) Marginal cost of 5 units of output per week.
     (e) Average cost of 8 units of output per week.
Units of output (per week)
Fixed Costs    $
Variable costs   $
Total Cost       $
Marginal Cost     $
Average Cost       $
0

-
1000
-
-
1

350


1350
2


1560


3

740

180

4

1000


500
5


2400

480
6
1000


600

7


3850

550
8

3960




B. The price of a firm’s product is $5. It sells 1000 units.Calculate the firm’s total revenue (TR) and average revenue (AR). (Show your calculations)                           [2]

C.  Singapore Airlines cancelled thousands of flights between April and August 2000 because of crew shortages, bad weather and technical problems with aircraft. There was also a 3% reduction in flights because pilots refused to work overtime.
(a) Explain the difference between a fixed cost and a variable cost.      [4]
(b) Discuss whether the cancellation of a flight would have affected the fixed and       variable costs of Singapore Airlines.                                                         [6]
(c) What is meant by ‘the principle of profit maximisation’?                [3]


Question 3:
Q. A. Explain advantages & disadvantages of market economy.  [10]
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Q.B. Distinguish between free market & Mixed economy. [6]
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C. Why mixed economy is considered as the best economic system? [8]
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Diwali Vacation Home Work for Grade IXA and Grade IXD

Diwali vacation Home Work for Grade IX A & D
Work Sheet              Elasticity of demand
 
Question 1:
•      Price elasticity of __________ is defined as the ___________ change in quantity demanded resulting from one percent change in the ___________of the good, other things remaining constant.


% change in quantity demanded
PED =                  --------------------------------------
 





Percentage is worked out as follows:
 




%change   in quantity demanded  =   --------------------------  X 100
original quantity


% change in price        =    -------------------------------       X 100
       original price


Question 2:
For problems 1–3: calculate elasticity.

1.      Price is increased from $20 to $21 and quantity demanded falls from 10 to 9.




2.      Price is lowered from $40 to $39 and quantity demanded rises from 7 to 8.




3.      Price is lowered from $20 to $19 and quantity demanded rises from 100 to 105.



Question 3:
This worksheet looks at the measure of price elasticity of demand; how to measure it, what determines its value and what value it is to companies as a measure. To cover the worksheet fully, you should have a sound knowledge of the principles underlying supply, demand and the determination of price in a market.

Step 1 - E L A S T I C or INELASTIC?

Price Elasticity of Demand is a measure of how responsive demand is to a change in price. If a price change leads to a considerably bigger change in quantity demanded, we would consider the good to be responsive to a price change: hence elastic. If, however, a similar price change leads to a much smaller change in demand, we would consider it inelastic.
To get a more precise measure than this of the responsiveness to a price change we can calculate a value for price elasticity of demand. We use the formula:


PRICE ELASTICITY OF DEMAND =
percentage change in demand
percentage change in price

Use the formula above to calculate values of Price Elasticity for all the situations below:
Price
Quantity
% change in quantity demanded
% change in price
Price Elasticity of Demand
Initial
New
Initial
New
25
30
100
40
 
 
1. ___________
40
70
120
90
 
 
2. ___________
200
220
80
64
 
 
3. ___________
50
75
150
135
 
 
4. ___________
In each case identify whether you would describe it as elastic / unit elastic / inelastic
1. _________________________
2. _________________________
3. _________________________
4. _________________________



 Question 4:
What determines E L A S T I C I T Y?
As we have seen above it is important to a company to have an idea of the value of the elasticity of demand of its good or service as it will affect what happens to their total revenue as price changes. What should the company aim to do with their price in each of the circumstances below?

Elasticity
Change in price to increase total revenue??
(Increase or decrease price?)
Elastic

Inelastic

Unit elastic


If the company want to estimate the value of the price elasticity of their product, then they need to judge it against the following criteria:
·         Proportion of income spent on the good - the lower the proportion of income spent, the more inelastic the good will tend to be
·         The number of substitutes - the more substitutes a good has the easier it is for consumers to switch to another product if the price goes up
·         The strength of the brand - the stronger the brand, the more inelastic the product will be
·         The level of necessity or addiction - the more necessary or addictive something is, the more inelastic it will be

Judge the products in the table below to decide whether you think they will be elastic or inelastic:
Product
Elastic or inelastic?
Reasons?
A box of matches


A luxury holiday


'Heinz' baked beans


Computers - home users


Computers - business users


Cigarettes


Elastic bands





Inflation Worksheet


Question 5:
 What is:
a) Inflation?
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b) Consumer Prive Index?
_________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(c) How is Inflation measured?
·_________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Question 6:
 The Causes Of Inflation.
a) Cost -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
b) Excess Demand -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
c) Imported -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Question 7:
(4) Suggest Policies to Reduce Inflation.
a) Monetary Policy -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
b) Fiscal Policy -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
c) Price and Income -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
d) External -
_________________________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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