Download CIMA Study Systems 2006: Economics for Business (CIMA Study by Steve Adams PDF

By Steve Adams

The 2006 version of CIMA's legitimate examine platforms are released through Elsevier on behalf of CIMA. Key sections of the 2006 learn structures are back written by way of examiners so each one textual content absolutely displays what will be established within the examination. up to date to include legislative and syllabus alterations, the 2006 learn platforms supply entire learn fabric for the may possibly and November 2006 checks. the recent version continues the preferred loose-leaf structure and includes: * perform questions all through * whole revision part * subject summaries * suggested studying articles from more than a few journals * CBA sort mock examination * The authentic examine structures are the one learn fabrics recommended via CIMA * Key sections written through examiners for the main exact, up to date assistance in the direction of examination good fortune * entire built-in package deal incorporating syllabus tips, complete textual content, suggested articles, revision publications and large query perform

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G. Quality Street chocolates and Roses chocolates), a rise in the price of one will cause an increase in demand for the other (and thus the demand curve will shift to the right). Sometimes, technological breakthroughs mean that new products come into the market. For instance, the advent of ink cartridge pens reduced the demand for fountain pens, because the former became a cheaper (and less messy) substitute. (iv) Population. An increase in population creates a larger market for most goods, thereby shifting demand outwards.

6 Solution: (D) Prices are signals to both consumers and producers which influence their buying and producing decisions and in this way help to allocate resources between different goods and services. However, prices do not act as a store of value; this is a function of money. 7 Solution: (C) The standard of living is a function of income per head; money is stock of financial assets, not income. The balance of payments has no direct relationship to income. Earnings represent only one source of income.

4 are calculated for a price fall (triangle c). e. e. À12 ). Elasticity is therefore calculated as 55 Ä ( À12 ) = À2. e. e. À12 ). Elasticity is therefore calculated as 1 1 2 3 Ä ( À2 ) = À3. This demonstrates the importance of the position of the demand curve. Generally, a curve further from the origin will tend to be less elastic, as shown above. The numerical value of the elasticity coefficient also varies according to:  whether a price fall or price rise is calculated. 4, D2 elasticity = À23 when price fell from 10p to 5p.

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