GCSE economics question

Generali

PasturesNew wrote: »

I got an ology!!

You're a scientist.

System

It's a sloppy amateurish kind of question dressed up as a real one, if indeed this is a genuine question.

Mr Smith is presumably meant to be a young person, by implication single? So why drag in RPI facing pensioners?

The proposed landlord letter is naive if not deliberately tongue in cheek.

It might make a serious question if it was "Discuss the economic factors facing private and commercial tenants, and why the latter are currently able to negotiate lower rents ?"

mr_fishbulb

Clifford_(Party)Po(o)pe(r)

Loughton_Monkey

mr_fishbulb wrote: »

Clifford_(Party)Po(o)pe(r)

Flipper of Cod (anag)

Generali

Clifford_Pope wrote: »

It's a sloppy amateurish kind of question dressed up as a real one, if indeed this is a genuine question.

Mr Smith is presumably meant to be a young person, by implication single? So why drag in RPI facing pensioners?

The proposed landlord letter is naive if not deliberately tongue in cheek.

It might make a serious question if it was "Discuss the economic factors facing private and commercial tenants, and why the latter are currently able to negotiate lower rents ?"

Talk to these guys. Don't shoot the monkey messenger:

http://www.edexcel.com/Aboutus/contact-us/Pages/home.aspx

chucknorris

macaque wrote: »

c. Imagine you are Mr Smith and you have decided not to buy. Write a letter to your landlord and explain why you will be paying 7% less as of next renewal.

Dear Mr Smith,

Thank you for your letter dated 17 August 2011 regarding your request for a rent reduction. As I mentioned to you last year when we allowed your contract to continue on a periodical basis we froze your rent despite market increases because we reward our longer staying tenants. As rents have once again increased this year, we feel a rent reduction is not in our best interests. I therefore give you two months notice (see enclosed section 21 notice) to vacate the property which runs from your rent due date of 18 August 2011. We will shortly send you further information regarding the 'moving out procedures' in the meantime I wish you well and thank you for your custom, good luck in your next place.

Really2

macaque wrote: »

Question 2 (40 marks)

Mr Smith has a take home salary of £1000 per month. He is planning to buy a 2 bed flat which will cost £500 a month in mortgage repayments. In September he recieves notice from N&P power that prices are going to rise by £30 a month and from Thameslink that fares are going up by £40 month. He goes to his boss and asks for a 7% pay rise. His boss says "**** off, didn't you know we have a pay freeze and you are lucky to have a job at all sunshine".

a. Discuss what impact Mr Smith's chance of circumstances will have on his house buying negotiations.
b. Summarise the different types of inflation and their relationship to the housing market
c. Imagine you are Mr Smith and you have decided not to buy. Write a letter to your landlord and explain why you will be paying 7% less as of next renewal.

Is it
D. buy a jumper and an economical car, bike etc?

Starbrite

PasturesNew wrote: »

I got an ology!!

Why did the old BT advert spring to mind when I read this?

Oh and thanks for making me laugh, I saw the first post and my brain freezed up, (I hate maths it's like talking Japanese to me) But Loughton Monkey you translated it into english for me why couldn't you be my maths teacher at school I may have actually bothered to turn up for the exam!!

DiggerUK

If he had put his money in to gold for the last five years, he could have got two houses.
One house he could have lived in, and one to use as a BTL.....and he would still have had enough left over to buy a replica Roman Toga, a new suit, and told the boss to stick his job..
..._

Loughton_Monkey

chucknorris wrote: »

Dear Mr Smith,

Thank you for your letter dated 17 August 2011 regarding your request for a rent reduction. As I mentioned to you last year when we allowed your contract to continue on a periodical basis we froze your rent despite market increases because we reward our longer staying tenants. As rents have once again increased this year, we feel a rent reduction is not in our best interests. I therefore give you two months notice (see enclosed section 21 notice) to vacate the property which runs from your rent due date of 18 August 2011. We will shortly send you further information regarding the 'moving out procedures' in the meantime I wish you well and thank you for your custom, good luck in your next place.

Dear Mr Norris,

I beg of you to review your decision.

I've been the victim of bad advice. I had originally been told by a Mr McAche that I could buy a 2 bedroom flat for £500 a month. It was only when I saw 8% increases in my travel costs up to £540 a month, and 15% increase on my heating bills up to £240 a month, that I started to see a problem. With income of £1,000 a month, and outgoings of £1,280, I decided this leaves me very little to live on.

In another stroke of mathematical genius, Mr McAche suggested that a 7% salary rise would cure the problem. It was only when the rise was refused by my employer, that he suggested I ask you for a 7% rent reduction. You should be thankful that I didn't request a 28% rise, otherwise no doubt Mr McAche would have suggested I request a 28% rent reduction.

I have since been informed by my employer that he has decided to reduce my salary by 30%. Following exactly the same logic, therefore, I hereby formally request that you increase my rent by 30%.

Yours hopefully

Mr Smith

[PS It is particularly important that you allow me to stay. It is the only place I have to live, and I have promised to let Mr McAche stay here too when he is released from the 'sanctuary'.]