You are welcome to ask questions on Economics. I am looking to explain economic principles / ideas/ recent developments in economics. Due to the volume of questions, I can no longer promise to answer. But, I will try if it meets below criteria.
I will post the answer on this blog, for everyone to benefit from. I never email individual answers
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- I am looking to explain economic principles / ideas/ recent developments in economics.
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I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.
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66 comments ↓
Explain how the following changes might affect the level of consumer spending in the UK:
a) An increase in interest rates
b) A fall in the FTSE 100 index
c) A depreciation of the value of the £ against the Euro
d) An increase in the higher rate of income tax
Doesn’t fractional-reserve banking money creation hypothetically do convert the value of goods into money?
I have a test and the money creation process confuses me. What I truly do not understand is what happens after the debts are paid back. People say that the money creation is solely based of amplification of debt, but doesn’t the amount of money actually increase when the debt is paid back? Because then not only part of the money come back as deposits, but the borrower also pays back the amount of loan, hence, the creation of money in the perspective of the bank. Obviously, the quantity of money doesn’t change in the economy, but the banks are truly creating money.
what is the difference between a debit and a dete
what is the
Hello, I am Lisa Shie(my English name),I am a graduate student of ECNU(East China Normal University ),major in Public Administration.I found your blog through Google.I have a question-what are public goods catalog?
Thank for your reply.
Good days.
Lisa
Explain how each event affects production possibilities.
(a) The population becomes more educated over time as the number of high
school dropouts falls and the number of college graduates rises.
(b) The unemployment rate declines from 7.3 to 4.5 percent of the labor force.
(c) Businesses and government are unable to solve a major computer problem,
thus reducing economic efficiency and national output.
(d) Advances in telecommunications and new technology significantly
contribute to economic growth over time.
(e) The Congress and the President decide to allocate more resources to national
defense.
(f) A nation participates in increased international trade with other nations of the
world.
I need you kind favour for the above questions.
hello,
i am currently trying to revise for my global economy paper in janurary, and we have been given a pre stimulus response paper.. which seems to be about stability and how the government used monetary expansion in terms of low interest rates to help boost consumption etc etc… Although i am tryng to get some notes on stability, as to why stability is so important, and hoe fiscal n monetary policy can be used 2 promtoe economic stability…
much appreciated if some1 was to reply..
thanks.
What are the limitations that policymakers face when using discretionary fiscal policy?
Assignment 2: Oligopoly Market
The majority of the world’s diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follows:
Price Quantity
$ 6,000 5,500
5,000 6,500
4,000 7,500
3,000 8,500
2,000 9,500
1,000 10,500
If there were MANY sellers of diamonds, what would equilibrium price and quantity? Why?
If there were only one seller, what would be the equilibrium price and quantity? Why?
If Country A and Country B formed a cartel, What would be the equilibrium price and quantity? Why? Is this cartel likely to survive? Why or why not?
Please help, beginner Economics and I don’t understand-
will gold price possibly drops?why
im having trouble with drawing a supply and demand curve for the hybrid cars market? and i also need 2 show on the graph the new allocation of resources that would result after both a large increase in unemployment and a large tax credit for manufacturers of hybrid cars.
Using the W/J approach to the circular flow of income in an economy, predict what would happen (other things gbeing equal) to the economy in the following circumstances:-
a) A fall in government spending on health, education and transport as the government attempts to cut its public borrowing.
b) A decrease in the marginal propensity to save as the public begins to gain confidence that the worst of the economic recession is over.
c) A decrease in corporation tax on companies as a result of the introduction of a new Government initiative.
d) A fall in imports as a result of an unfavourable movement in the exchange rate.
The problems in the global banking system have affected most economies of the world. In response, governments have introduced monetary and fiscal policies to try to improve the sisuation. With reference to a particular country:-
a) Explain how the government of that country adjusted its monetary and fiscal policy in response to the world downturn.
b) Indicate the problems which are created for the government’s finances as a result of having to help avoid an even deeper recession.
A SWOT analysis of the GlaxoSmithKline pharmaceutical company.
Explain in detail Marris’s theory of the firm and discuss whether it is that this theory can help explain the experience of Tesco, the international supermarket chain, over the last eight years.
Hello,
My question is:
What is the difference between nominal exchange rates and real exchange rates?
And maybe contextualize that question into how exchange rates play a role in government policy.
Thanks,
Robert in New York
Why does the Government use Health Budget Outlays to alter the allocation of resources in our country?
Assume the government is running a budget deficit. Should the government raise taxes to balance the budget? Should the government decrease spending to balance the budget? What are the pros and cons of each action?
1.With suitable diagram, compare the short and long run equilibrium condition for a firm in a perfectly competitive market and in a Monopoly.
I am not asking for a class, but as a non-economics student out of curiosity and trying to make sense of the information at hand. I understand that you are in the UK and the US Fed is not your specialty, but I wonder if you have any thoughts on this matter? According to this graph (http://en.wikipedia.org/wiki/File:Dollar_value_chart.gif) the value of the dollar fluctuated significantly prior to the establishment of the Fed and then steadily declined way past any previous low levels. According to this http://www.archive.org/details/NationalEconomyAndTheBankingSystemOfTheUnitedStates (An exposition of the principles of modern monetary science in their relation to the national economy and the banking system of the United States 76th Congress, 1st Session, Senate Document 23), a primary reason for this institution was to help alleviate the wild swings in the value of the US currency. But, why then has the value of the dollar only declined since the existence of the Federal Reserve System? Is this not evidence as Ron Paul suggests, that the Fed should be stripped of it’s power?
Thanks in advance,
Tony S. – San Antonio Texas
what if a large country is experiencing an export-biased growth? what will happen to its terms of trade?
Why are demand side policies thought to be ineffective in raising Britain’s long-term rate of economic growth?
discuss how globalisation could have led to the rapid change in consumer demamds
What is the Economic significance of the construction industry to the uk economy, how it impacts, with respect to trend analysis of construction output?
If a 5 percent decrese in all the inputs used to produce a commodity leads to more than 5 percent decrease in total output,what is the returnes to scale ?increasing or decreasing?
causses of changes in the exchange rate
Evaluate the view that more competition in a market is more desirable than less competition.
can you explain what will the knock on effects of the governments cut in spending,mainly revenue,profi employment both internationally and local-the ecomomy as a whole
what are the knock on effects of decrease in government spending
what is Cartel(conditions,graphs,examples,causes and solution)?
What is an index-based risk transfer product ?
lora
How do economic reforms affect inflation?
1.which of the following is true about rational economic decision?
a.marginal costs exceed marginal benefits
b.marginal benefits exceed marginal costs
c.opportunity costs are less than marginal benefits
d.opportunity costs are balanced by total benefits.
explain the basic principles of economics
hi im hirah from pakistan and doing A-levels may i know the difference between diminishing returns and diminishing returns to scale??
I would like to know the key issues facing businesses globally as well as the UK.
My question is…
If I have to get economic master degree,what kind of job İ will apply in real life . can you give me list of economic job.
What is upper and lower bound in the context of efficiency (allocative) ?
Can i get a full self explanatory notes on National Income and National Accounting
I’m a student of graduation I have a question tha “Study of an individuale consumer behaviuor falls in microeconomics” discuss this statement in the light of microeconomics.
what problems effect the indian economy?
hello.
what are the effects of the food subsidy for the old age persioners as a government policy. which policy should the government adopt.Use an indifferent curve approat to support.
what impact does a recession have on business investment plans?
please what are the major causes of 2008 finacial crisis especially in the US.Thanks
1. policies to reduce problem of income inequality?
2. And also causes of this problem?
3. Analysis argue that income inequality undermines growth?
Hi, I would like to ask if China went into a recession, would that make the economies in other countries that are currently in recession better off? In other words, would it improve relatively the state of the economy in other countries considering the standard of the market has fell?
Thanks.
Regards,
Ash
1. Discuss the view that full Ricardian equivalence renders fiscal policy ineffective.
hi,
what is the general feeling when will uk unemployment begin to fall steadily
why LM curve behave like such?
Hi
Can you please answer the following questions and give me a true, false or uncertain answer to the questions. Also can you give me a brief explanantion to why you think this:
1)If savings exceeds investment in an economy then the government must be running a
budget deficit.
2)A rise in the interest rate reduces investment because firms become less optimistic
about the future.
3)In the Quantity Theory of Money an increase in real national income will reduce the
price level.
4)If the public increases the ratio of cash to deposits that it holds, the interest rate will
increase.
Thanks
Regards John
What are they different types of Recession? Is it cyclical and structural? can you explain those to me?
Hi, I hope you can help i have an assignment question but don’t even know where to start with answering this question any advice would be beneficial.
The market demand and supply for 3 bedroom houses in a small town per annum are summarised by the following relationships, where Q is the number of houses:
Demand= $400,000-$200Q
Supply= $150,000=$1000Q
i) What will be the market price and annual number of sales at Equilibrium?
ii) If only 50 houses are available for sale in a year, what will be the expected increase in price over the equilibrium level.
Thanks
Darren
From a macroeconomic demand management view what would you say are the advnatages and disadvnaatges of having a central bank uses interest rates as one its instruments and has a inflation target rate of 3%?
Thanks
Regards John
Hello can you please tell me what the disadvantages of using interest rates would be for the economy
Thanks
Regards Trisha
Hello there,
I am trying to work out price elasticity of demand for specialty honey, but getting confused. I thought it was elastic, as it is a niche product, however only a small fraction of our income is spent on it and it has a substitute – normal honey.
Thank you
Henrieta
monopoly attain equilibrium in short run and long run also
Creating a post recession; what steps should the EU take to reform the banking sector
(for a debate)
how will central bank may increase the supply of money in economy?
hi, my name is junassa i want to know abt demand curve..and i need and i am doing IG and i need economic past paper
What is the name of a type of good that only has value to someone if no one else possesses it?
hi,
i just wanna know the difference between
wages,salary and pay
thnx
what are the objectives and the functions of the financial system
thank you
1. Using examples from the hotel sector briefly explain what is meant by the concepts of competitive advantage and competitive scope.
2. Using appropropriate diagram explain how and why the output, price, profit, revenue and costs are likely to vary between a large hotel chain with a large number of shareholders and a chain controlled by a close knit family group.
3. using appropriate diagrams explain why the amount of monopoly profit generated by a specialist cuisine restaurant will tend to be higher than that for a standard beefeater style restaurant.
4. explain why it makes economice sense for a restaurant to offer a wider range of services including business lunches, evening meals and take away meals rather than just concentrating on their core evening business.
5. Explain what is meant by the concept of the ‘minimum efficient scale of production (MES) and consider how the JD wetherspoons public house chain have affected the MES within thier industry.
6. Which of the following countries had the highest average annual per-capita real income growth rate from 1965 to 2004?
a. Brazil
b. China
c. Japan
d. United Kingdom
e. United States
Please help me in solving following problems.
1. Suppose that there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. Present production is:
Iowa Nebraska
Wheat 20 million bushels 120 million bushels
Corn 120 million bushels 20 million bushels
a. Explain how, with trade, Nebraska can wind up with 40 million bushels of wheat and 120 bushels of corn while Iowa can wind up with 40 million bushels of corn and 120 million bushels of wheat.
b. . If the states ended up with the numbers given in a, how much would the trader get?
2) The Ali Baba Co is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q= 112,000 – 500P + 5M, where Q= number of carpets, P= price of carpets (dollar per unit), and M= consumers income per capita. The estimated average variable cost function for Ali Baba’s carpets is AVC= 2000 – 0.012Q + 0.000002Q2
Consumers income per capita is expected to be $20,000 and total fixed cost is $100,000
1. How many carpets should the firm produce in order to maximize profit?
2. What is the profit maximizing price of carpets?
3. What is the maximum amount of profit that the firm can earn selling carpets?
4. Answer parts a through c if consumer’s income per capita is expected to be $30,000 instead.
3)Ever Kleen Pool Services provides weekly swimming pool maintenance in Atlanta. Dozens of firms provide this service. The service is standardized;each company cleans the pool and maintains the proper levels of chemicals in the water. The service is typically sold as a four month summer contract. The market price for the four month service contract is $115.
Ever Kleen Pool Services has fixed costs of $3500. The manager if Ever Kleen has estimated the following marginal cost function for Ever Kleen, using data for the last two years:
SMC=125 – 0.42Q +0.0021Q^2 (suppose to be exponent 2)
Where SMC is measured in dollars and Q is the number of pools serviced each summer. Each of estimated coefficients is statistically significant at the 5 percent level.
a.Given the estimated marginal cost function, what is the average variable cost function for EverKleen?
b.At what output level does AVC reach its minimum value? What is the value of AVC at its minimum point?
c.Should the manager of EverKleen continue to operate, or should the firm shut down? Explain.
d.The manager of EverKleen finds two output levels that appear to be optimal. What are these levels of output and which one is actually optimal?
e.How much profit (or loss) can the manager of EverKleen Pool Services expect to earn?
f.Suppose EverKleen’s fixed costs rise to $4000. How does this affect the optimal level of output ? Explain
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