You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions.
I will post the answer on this blog, for everyone to benefit from.
I shall try to answer the economics question and / or point to other resources but please bear in mind.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
- I can’t guarantee to always give full answers it also depends on my time schedule.
- I will answer as a new post. Check home page of blog for new post. With question and answers
- Generally, I don’t answer questions, which involve mathematical calculations, they tend to be doing someone’s homework. however, I may give examples, of calculations, if I think it helps explain economics principles.
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.
Related
- The first Readers Questions has had over 150 comments.
- Readers Questions II
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218 comments ↓
Hi Tejvan,
it could help me if you can write a blog on
The economic performance of a UK Construction PLC will be affected by many factors, including the role of government, exchange rates and inflation. discuss
Hi,
Its prachi again……
Establishing economics as an academic discipline discuss. could you help me with this and also to some extent
can we analyse this statement as said by ofori 1994
Suppose there are two competitive markets, one with relatively elastic demand and one with relatively inelastic demand what would be the effects of a market-wide increase in marginal costs in the two market.
It’s not a good question, but i’ll ask it. Could you explain differences between R and D and innovation?
Discuss whether economic actions by individuals always result in a net benefit to society.
‘evaluate the likely economic implications of a fall in foreign direct investment for the UK economy.’
(12 marks)
‘Outline two reasons why the UK’s housing market represents a barrier to the UK’s membership of the euro’.
‘Evaluate two policies which the government might adopt to reduce the male inactivity rate’
(10 marks)
‘Evaluate three labour market factors which might explain why levels of employment have risen despite increases in the national minimum wage’.
(15 marks)
‘Using marginal productivity and other relevant economic theory, discuss the factors that will influence the demand for car workers in Germany’.
(15 marks)
this is a unit 6 edexcel question:
‘Examine the impact of the European Union’s Common Agricultural Policy on the world trade in agricultural goods’. (40 marks)
this is also a unit 6 edexcel question:
‘Evaluate the implications of a significant reduction in barriers to the trade in goods and services for the global economy’.
(60 marks)
‘Explain the concept of natural monopoly’
‘Evaluate the likely effectiveness of two policies that the German government could introduce to increase labour market flexibility’
(20 marks)
this is a unit 5 edexcel question:
‘Discuss the likely impact of trade unions on wages and employment levels’
(20 marks)
How does high inflation and high interest rates act as a constraint to economic growth?
This one is about the time arrangement for the real exam . Could you tell me for Unit 6 edexcel how should I allocate the time for essays and data response ? and for essay and data response , which one should I do first ? is there any particular order ? (with extra time 25%)
This one is about immigrants on labour market . The question is “evaluate the extent to which a greater level of net immigration to the UK may improve its labour market performance ” (by the way , what on earth is the black market and how does the immigrant have an impact on that? )
“Evaluate the agument that further measures to reduce inequality may have adverse consequences for work incentives ” (We can talk about the progressive tax which reduce the high income groups ‘ working incentives and may cause the brain drain problem ) but how can we evaluate this question ? such as not adverse effect ? or the significance of that ? Plz HELP !
Meaning of capital flight
whats micro economic polices and macro economic policies?
why is there a difference between the size of the population of working age and the size of the workforce
The three factors which can explain the wage differentials in the South East and the North ? (1,living cost 2, MRP theory , 3 ??), can I say that trade union power in the South East is more strong ? I just guess and dont know whether that is an acceptable answer ?
I just apply the theory and I am not sure whether I have to tell the truth in the eco . exams ?
What does “Capital Mobility ” mean ?
how to explain “The improved mobility of Physical and Capital mobility has enabled further gains from trade. This is because it has reduced the cost of transport and international finance. ” I always dont get that . Please help ! What does that capital include ?
If British industry was to become uncompetitive it would have the following adverse effects on the economy : one of them is a higher level of inflation . How to explain that ? Thanks^^
How does the FDI increase the UK international competitiveness ?
can you please help me with this two Unit 6 question?
Question:
(1)Examine the reasons why a country might wish to restrict imports.
(2) To what extent might the pursuit of full employment conflict with other economics objectives?
thanks.
Could you tell me what is the “static and dynamic efficiency gains from trade ” ? Thanks ^^!
I wonder what were the restrictions on the movement of financial capital when there is any ? and could you tell me what exactly does the “capital control ” mean ? Many THANKS !!
Dear Sir
I am having difficulties with answering this question on unit 6 (edexcel economics)
“Discuss the view that the Phillips Curve is irrelevant in explaining relationships between unemployment and inflation in the UK”
I do understand the concept of Phillips curve, but I feel like my knowledge is not deep enough to answer such 60 mark essay questions, not to mention the evaluation part.
I have an exam on friday, your help would be appreciated
thanks
You are the President of a company which produces and sells two products (price elasticity of demand in brackets): Widgets (-2.34) and Whatsits (- 0.36).
You are concerned with your firm’s profit levels, and want to increase total revenue if possible (assume costs are constant). What would your pricing strategy be for each of these products? Explain your decisions.
Hello , may I ask why protectionism unlikely to protect jobs in the long run ? Many thanks !
Can you please explain how would you go about carrying out an economic assessment of staging the Olympics in LOndon? Thanks
Could you explain why “crowding out is not a problem if there is unemployment resource ” ?
how could oil price possibly down?any supported theory?
Is there a model/diagram to help explain Baumol’s Cost Disease / Baumol Effect?
Thank you very much!
Please..
How does a Corp. dismiss (writedown) a huge sum ($24 billion) and still stay in bussiness?
And still pay “investors” a handsome dividend?
Is fuller Capital account converibility a good thing for country like India?
When is international trade an opportunity for workers?
How Has China’s Economic Industrialisation Affected the UK’s Economy? And What Policies Could The UK Government Implement To Rectify The Problems Created From China’s
Growth?
what are the impacts of expansionary fiscal policy?
what is the negative and positive impact of rising in the interest rate on financial market?
Who ‘owns’ the bank of england ?
Who did the 31bn 2007 National debt interest payment go to?
why do all these people expect you to do thier homework ?
retail petrol market in new zealand and its market power and elasticity of demand involved. Explain.
Please explain the role that property plays in a country’s economic development
How does the rising prices of shares stimulate spending in the economy as a whole ?
Hi… I am an A Level student proceeding to my A2s. You see, I have underestimated AS econs and thought it would be like O Levels, and naturally, I did badly. So I will be re-taking AS and doing my A2 this Oct/Nov, one shot. My question, is concerning the essays. What is the common ground of all the essays? (ie. What econs topics are usually focused on as Essay questions?) For O levels I realised it was basically – int. trade, S&D, Unemployment, etc. Pls help me. Thank You very much…
a question i am pretty sure is going to come up is; what axioms underlie the theory of consumer behaviour? how resonable are they? i have the axioms: completeness, transitivity, continuity, non satiation and convexity. but we have never been taught about how reasonable they are and i can’t find any info anywhere! please please help
Will China’s huge economic growth improve living standards for the people in China?????
Thanks =)
Comment on whether rapid economic growth would always be beneficial for a poor, developing country.
1. critically examine the effectiveness of monetary policy.
2. what factor do you think limit the effectiveness of monetary policy.
3. fiscal policy in any conutry look for 30 sentences.
Is it right that private banks can create 97% of all new money by lending it into existence, and what effect does this have on inflation and the value of money already in existence ?
what is the difference between short run and short term?
what are advantages of inflation
disadvantages of inflation
Using the AOL/TW merger case study together with your experience, critically analyse the following:
a. The need for mergers/takeovers to be regulated by government
b. The theory that mergers do not enhance shareholder value but are done in pursuit of other management objectives that are contrary to those of shareholders
1) Suppose more money is put into the economy. What is the impact of this increase in money on: the graph of the nominal labor market, and the graph of the production function. Use these graphs to show that the Classical aggregate supply curve is vertical. Explain why each curve shifts or doesn’t shift in each market and the impact on nominal wages, real wages, inflation, labor hours hired and national output.
2) Suppose more factories are put into the economy. What is the impact of this increase on: the graph of the REAL labor market, and the graph of the production function. Use these graphs to show what happens (if anything) to the Classical aggregate supply curve. Explain why each curve shifts or doesn’t shift in each market and the impact on real wages, labor hours hired, and national output.
3) Suppose taxes are increased in our economy. What is the impact of this increase on: the graph of the real labor market, and the graph of the production function. Use these graphs to show what happens (if anything) to the Classical aggregate supply curve. Explain why each curve shifts or doesn’t shift in each market and the impact on real wages, after-tax pay, labor hours hired, and national output.
4) Use the flow of goods diagram to demonstrate the impact on total demand and output in the Classical view of a reduction in consumer spending.
List 7 elastic and 7 inelastic things found in your home?
i would here by request to hihglight in capital account convertibility and its impact on indian economy.
thanking you.
Can you explain The importance of water to the environment.
Should we worry about water running out?
What are the types of unemployment?
What are the advantages and disadvantages of International Trade?
i want to ask a question .if production of food crops is increasing at a diminishing rate .wht factors of demand can reverse this trend
why do the rich stay rich and the poor stay poor ?
what are merit & demerit of inflation?
why is inflation increasing?
Hi, How would you answer this question regarding opportunity costs and such.
Suppose you made a confection which is called for one cup of buttermilk. The smallest container of buttermilk you could find was one pint ( two cups). Having made it, you have one cup of buttermilk left. You do not like to drink buttermilk, but there is another dessert you could make which would use up your remaining cup. Suppose the pint of buttermilk originally cost 50 cents and the other ingredients for the dessert cost $2.50. The value you place on te dessert is $2.70. Should you make the dessert? WHY?
hey my name is lerato a student at the university of johannesburg.
the thing is i have a problem with analysing the exchange rates.
i want to understand what happens when the exchange rate depreciates and appreciates please can you make me a brief summary based on exchange rates.
hey
i just want to know were the south africa stands in the world international trade
hey the thing is i came across the word autarky so i want to konw what effect does autarky has in economics
Hi,
We read of how the the housing market crash in the U S has attributed to the impending world economic recession. Can you discuss the effects,both positive and negative, of this recession on the Property Market of Asian developing economies, notably, China and India.
may i know what is meant by the term ‘hourly productivity’ ?
this is a unit 3 edexcel question.
need help please. cant do an essay on discuss the limitations of the statistical measures of economic performance
Can a company list in more than one share index?
two questions.
1. The government puts a lot of money into banks who over-lent funds. So why are the banks still lending out money for mortgages?
2. The problem has been the number of defaulters. But for Building Societies there is less than 0.001% of 1% defaulters (Saturday’s Guardian) – where ARE all these houses being repossessed?
Hi! Can you explain for me why floating exchange rates reduce the risks of currency speculation? What are those risks? Thank you very much!
hi,
i have a question here about the’ electronic banking has caused the demand for cash — as a percentage of GDP– to decline’ . i have did abit research on this and i found there is no abviouse impact on decline of cash but not too sure if it right. so would you please tell me more about the impact of having eletronic banking and demand for cash. thank you
One way to finance government spending is to print money, but printing more money leads to inflation. How economic theory justify this? What are the disadvantages of printing more money?
Hi Mr. Pettinger,
I’m just curious about how and why the dollar has strengthened (at least against the Euro and Pound) and why the US would benefit from a stronger USD.
I know that a weak USD means a stronger exporting sector (which is what the US economy had been thriving upon over the last year or so). Can you please link up some articles you wrote previously on this matter, if you have time.
Thanks so much!
Could Pension provision in the private sector be explained with the help of life cycle model of consumption?
Hi,
the questions: economic factors that cause an economic Foreign Direct Investment to drop?
2) the “recent incidents” of the merits and demerits of government intervention in mircoeconomic market activities.
thanks a lot and i m much appreciate!
In recession it is good to cut interest rate, but to how far should interest rate be cut? What are the disadvantages of cutting interest rate?
Sir i would want to know the five reasons why we study economics as a discipline
define what is meant by equivalent and compensating variations. Under what conditions can the area under the demand curve above the price line be used as an accurate monetary measure of welfare.
How does the recent credit crunch and the failure of financial institutions have affected the decisions for people to invest their savings in the private sector? Could this also be explained with the help of economic thoery of saving and consumption?
Why is the Canadian $ dropping against the American greenback when the Canadian economy and banking system is in much much better shape than the American Economy and Banking system?
I live in Egypt. I have savings in sterling pounds. In view of the current falling value of the pound should I change it to local currency. Is there any chance that the pound will increase up again even after a year or so.
Hi,
I have been reading your posts and essays which are interesting as well as helpful.
The topic I am interested is in the causes of economic growth based mainly in the UK over the last 10 years. I guess technology has not played a big part in UK as much as other countries such as Japan, India & China. In my opinion, UK is consumer led and investment led in businesses and properties abroad. What’s your view on this? Also what do you think have been the main causes of economic growth over the last 10 years?
Thank you.
Demand for oil might be relatively elastic over the longer term, and yet it could be observed that over time people consume more oil (or only very slightly less) despite rising oil prices. How can this apparent contradiction be explained?
what is the future prespect for steel and palm oil in next 10 years to come?
What is the main purpose of foreign reserve? Who decides what amount to be kept as reserve and how this reserve is financed? Could be please explain in detail?
Prices fall due to a fall in demand. How does it affect the exchange rate? Whats the link between fall in prices and exchange rate?
hello Tejvan!
I have two questions :
1.In this period of (future)recession,is it gold a safe investment?
2.Low inflation but slow economic growth,if any, or GDP growth , with the risk of 2 digits inflation? Which one is a better option,or the least harmful?take into account the current international situation .
Thank you
hi,
Can you explain who is the loser are and why others may gain when house prices fall?
Thank you
How does the EU Work and make decision and how do those decisions effect industries such as the manufacturing industry, that specialises in paper and corrugated board?
Also what do the Institutions of the EU do?
Explain what is meant by labour productivity and show how changes of labour productivity may affect an economy’s production possibility curve.
Discuss the circumstances in which reducing the exchange rate and introducing quotas are effective policies to tackle a trade deficit.(12)
How can tariffs and quotas affect the internal inflationary pressures currently being faced by some economies
Why do firms care so much if their share price is low? surely it just effects the shareholders?
Hiya, I’m applying for E&M at oxford for 2009 entry and was wondering if you have any tips about the interview process. In my personal statement i also wrote about Internation economics and so i was wondering whether you could tell me a bit about what policies other countries have adopted and whether or not they were successful. Thank you!
The task of MPC is to stable the inflation at 2%. Current inflation is arounf 5% and the Bank of England has to tighten the Monetary policy to control the inflation. If Govt. revises the inflation target and set it to 5% , then what would be the affect on the economy and what would be the role of the Bank of England in those circumstances?
what are the main ‘negatives’ of a current account deficit?
I already have -decreased credit rating, spending is diverted away from the domestic economy to overseas and currency depreciation. What else is there?
Thankyou
Few years back when US cut interest rates drastically to recover the economy from dot com bust, it leads to a boom in the housing market and created another bust. Currently US has cut the interest rates again drastically to 1%, wouldn’t it create another boom and bust?
Thank you.
Large-scale wars typically bring a suspension of international trading and financial acticities. Exchange rate lose much of their relevance, but once the war over, governments want to fix exchange rate facing the problem what the new rates should be (=postwar exchange rate reslignment) How can you figure out the new exchange rate (e.g dollar/french) implied by PPP (=purchasing power parity)?
Which effects do these events have on a country’s term of trade, when the country exports manufactured goods and imports raw materials (e.g South Korea):
- oil disruption in Middle East
- Competitor selling manufactured goods
- development of a fusion reactor replacing fossil fuel
- harvest failure in Western countries
- reduction on import tariffs?
Recently few countries have turned to IMF for help. Could you please explain the role of IMF? How does it work and how is it funded?
hello Tejvan,
can you explain to me what actions could governments take in order to influence house prices and why have governments failed to prevent the collapse in house prices?
thank you
Is the study of economics irrelevant in the absence of the concept of scarcity
How has the effects of globalisation impacted a spurt in inflation and led to sub prime mortgages being taken up?
what are the reason of dollar appreciation while the world economic situation is not good! i would apprecitae if you provide me a simple comprehensive answer
How does the EU Work and make decisions and how do those decisions effect industries such as the manufacturing industry, that mainly specialises in paper and corrugated board?
What do the Institutions of the EU do?
What are CDOs? How do they work? Could you please explain in detail as I am very confused.
South Korea signed a currency swap deal with the US Federal Reserve, valued at $30bn. What is curency swap and how does it work? What are the advantages of and disadvantages of such a deal? Could you explain in detail please. Thank you
Hey there,
We’ve been hearing a lot about “derivatives markets” throughout this crisis. Could you please explain what that is? Also, what are “Credit Default Swaps” and “Collaterized Debt Obligations”; how do they work, and who uses them mostly? Thanks!
Baz
Hi Tejvan,
I have (thankfully!) recently been called to LMH for an interview, in the hope of studying E&M for 2009.
I am on a gap-year and have no teacher support to help when I am stuck on, or have questions about, economics. I was therefore wondering if you could help me gain an understanding of the 2 following concepts in some details:
(1).The rise of 3rd world debt – i.e. how it has happened, what its implications are, relevant theories etc
(2).International Trading – i.e. what theories are involved, its implications, recent examples etc
Would it be possible to write comprehensively about the above 2 subject areas please. I have done A-level economics and so concepts will be familiar to me; but any new ground you can provide me in particular, as well as that of the introductory concepts, will be fantastic help.
Thank you so much for your time. I look forward to hearing your responses soon.
Kindest Regards,
Steven.
At 50th.in the table of National Debt the UK doesn’t look that bad but do other countries include those future liabilities (public sector pensions,PFI’s etc.) which the UK ignores.In other words are these figures truly comparable?
What is dependency ratio? How this can be explained in term of ageing population. How is it link to GDP?
What happens when govt subsidizes a product? What happens when govt subsidizes ALL the products? Thanks
what would be opportunity cost of buying a house for £250,000 for a year? Thanks
If central bank wants high interest rate to contain inflation, but low interest rates to help exporters then what are the policy instruments available at the same time? If interest rate is the only policy instrument, then would one objective has to be sacrificed for the other?
the economic defect of an economic development
Could deflation lead to devaluation of the UK Pound?
If so, could there then be a case for the UK joining the Euro (if devaluation meant parity with Euro)? If we push the argument, could the UK be made more attractive to global business if devaluation of the Pound made it weaker than the Euro?
(I guess you see the silver lining I’m seeing…)
what’s the opportunity cost of a) owning a toothbrush? b) owning a used toothbrush? c) not owning a toothbrush at all? Thanks
hi, would you please state which base rate the monetry policy should se in December. Taking into account all the econmic factors in the UK
Using well labelled diagram, show the inefficiency of a monopolist
The site is exclusively educating and interactive
hi would you please describe the current state of the UK Economy.
hi would you please explain the likely effects on inflation due to the recent rise in unemployment
Review trends in inflation of india since independence?
would you explain the fiscal policies that would be adcocated during a recession and during a period of inflation by those who (a) wish to expand the public sector and (b) wish to contract the size of government
I faced some problems in expansionary policies, could you tell me more about the merits and demerits? Thanks!
Hi Tejvan,
What is meant by the Optimal Tariff?
I have tried reading about this, but I fall at the first hurdle – I struggle to even understand what ‘Terms of Trade’ exactly means.
Thank you for your help.
Steven.
This is the question..
Suppose that by devoting all of its resources to the production of A, the nation of Econia can produce 50A. By devoting all of its resources to the production of B, Econia can produce 25B. The comparable figures for the nation of Optima are 5A and 5B. According to the principle of comparative advantage, which nation will specialise in which products? What are the limits to the terms of trade?
My attempt on the question: Econia will produce A and Optima will produce B due to Compa. Advantage.
Limit : 1A=1A to 1B= 2B (im not sure whether it is correct anot)
Can anyone highlight on the methods or a guideline to derive the trade limit for specialisation?
APPRECIATED!
Hi please help me i need to write 1000 words on ”how the UK government could use both fiscal and monetary policy to try and overcome the impacts on its economy of the slow down in the world economy resulting from the present ‘credit crunch’..”
thanks so much
Hi Tejvan,
how could the purchasing power parity help in determining the new exchange rates after a war. (post war realignment)
how would the various schools of economic thought and their advocates interpret the US Bailout program? Would they support government intervention?
Last summer world demand for bio-fuels led to an uncharacteristic shift in the demand for world corn and wheat. In the EU this lead some farmers to abandon the previous EU set-aside policies and to increase production to respond to the world market. Do you believe that this new demand for bio-fuels obviates the need for the CAP
explain the possible macroeconomic impact of the interventions by the US Treasury and the Federal Reserve into the financial system
Hi there,
I’ve been reading various materials in preparation for an impending interview, and something that occurs frequently is the fact that low inflation has not always been the main macro target. When and why was a low inflation target made the primary objective?
How does the price of food affect inflation????
It has been suggested that the Government’s VAT rate cut of 2.5% will be insufficient to kick-start the economy.
Unfortunately the EU rules stipulate that the minimum rate for VAT is 15% in member countries (the maximum is 25%).
The Question: What is the economic argument for a minimum rate of VAT of 15%?
What is the purpose?
(Does it have something to do with applying a common rate of VAT on all imports from non-EU countries – like the 10% Common External Tariff?)
State intervention is necessary to maximize social welfare but intervention often comes at a heavy price. So why not rely upon the market system to tackle the problem?
Hey I have to write 15 pages on the economic effects the olympic games had on Barcelona in 1992……but it would help already if you could just give me some ideas on general economic areas that are generally affected through the hosting of the Olympic Games.
Thanks!!!!!!!!!!!
explain the various types of pricing strategies which companies can adopt in the face of competition in the market place. How would a knowledge of lasticity of demand help companies decide how to price their products?
Dear Tej,
I would like to know how the reserve bank of new zealand currently operates its monetary policy, the transmission mechanisms and the rols of inflation targeting.
As new zealand was the 1st country to introduce inflation targeting through the reserve bank act 1989.
If this could be explained in detail or e mailed to me would be of great help.
Cheers
Adrian Wright
What are the effects of rising food prices on individual consumers and nations? Briefly suggest what goverments can do to limit the impact of soaring food prices on their economy?
Is there an economic basis for the UK to enter the Euro now?
Discuss the circumstances where you feel aid is more beneficial than trade?
critically examine the Fisher’s version of Quantity Theory of Money.
India’s population policy
[...] ask economic questions, please leave a comment here: Ask Economic Question (unfortunately, due to volume of questions I can’t guarantee to [...]
What economic models and analytical techniques could be used to examine the impact of the ageing population and ageing hospital capital stock? Could you please explain? Thanks
What economic models and analytical techniques could be used to examine the impact of the ageing population and ageing hospital capital stock on the hospital based care system? Could you please explain? Thanks
can u help me with the UK govt …. uses both fiscal and monetory policy in its control of economy. Discuss and analyse this statement and the Ethic issues and comporent governence are more imp then legal issues . discuss ?
Upswing and a downswing ….. and what r the areas to control this…around 3000 words!!thank you
With the aid of examples, show how collusion between firms in oligopolistic markets may be detrimental to consumers and explain briefly what governments can do control the worst abuse of such a situation?
Dear Economics help? What is economic welfare can you please elaborate on how it affects an economy? How do we know whether is inflation is increasing or decreasing? (I know its is a silly question! but i just don’t understand at all)
Couls you please discuss reasons why a large company in one country might wish to ‘go global’ and the various ways it could expand its operations overseas. Thanks
Hi,
From the current economic crises government has been slashing its base interest rates to now 2%. However, how would deflation which is currently being experienced in several countries mainly due to decreasing fuel prices affect the attempted recovery from this crisis?
Many thanks
Dear Economics Help. Why is that when the petrol price comes down the prices of other commodities and services stay the same?
What are the main reasons for the decline of the pound, and what are the costs and benefits of a low pound?
Hi Economic Help,
I have a question about this entire Economic crisis were in. I have noticed that our currency (UK Sterling) is devaluing against the Yen. I was hoping you could explain why this is happening, and if its likely to happen in the future?
Hi economics I have a statement
Anyone is free to buy stock in FirmA, so everyone is free to share in FirmA’s economic profit and the bigger that economic profit, the better for all.
Critically evaluate this statement.
How would you regulate the Internet search engine business to ensure that resources are used efficiently?
Hi,
May I know what is shares maximization?
Thank You.
Hi, i have just been wondering. if the price of crude oil exceeds $150, and the price of petrol was approx £1.20. Now the price of crude oil is approx $45 and price of petrol is 89p. In theory shant it be less than 40p ?
Does anyone know the equation for finding Variable cost(microeconomics).
the study of economics is important in tertiary institutions. as a degree student examine six major importance of the study of economics
Is it advisable to start franchise Dollar Store business in this recession period?
Hello Sir-
I was just reading the wiki page about Commercial Paper and I understand the gist of it; however, one thing that always confused me about it is:
Since commercial paper is a cheaper alternative to a bank line of credit for companies to finance their daily operations, wouldn’t it make sense to just use savings as a direct means of funding? Why borrow (with interest) when you already have a lot of cash?
Please demystify this conundrum. Thanks so much and sorry to hear about the mortgage interest rates not being passed on.
importance of studying economics in tertiary institution
In the autumn of 2008, the UK had a rapidly rising budget deficit. Should the government have seen this as problematic and taken steps to reduce it?
how does monetary policy handles deflation
can you give examples for perfect competitive industry?
examine the economic consequences of maximum price control
Hi, I have a few questions:
What is the impact of deregulation?
What is meant by a sustainable transport policy?
–
The positive and negative effects of UK joining the Euro.
The macro and micro of the UK joining the Euro.
Also, what is meant by convergence?
Any help would be appreciated, thanks!
Why do firms develop Internal Labour Markets?
Could u please explain the comparison between the keysianism & monetarianism?
What is the elasticity, if demand is perfectly elastic?
can any one explain me plz ??
i am thinking of transfering 150k euros into sterling in the next week where should i put it
how does the decline in economic growth in the UK affect the housing sector?
Hi, can you help me;
i have been asked to find out the following.
“Globalisation effect in the UK’s Organisations and Stakeholders” any ideas???
Hi,
Would you be able to explain the formation of Trading Blocks’ and its impact on International Business? Take 2 trading blocks in the world to explain.
Thank you!
Please could you write something about supply and equilibrium (for price changes in the market), elasticities, optimal production (for both price taking and price making situations), price strategies for price making situations for housing in UK?
)
(need that for tomorow ..
what are the risks the nation may get after it ha missed the inflation target?
measures taken to reduce unemployment in india
Do other countries debt figures include the same liabilities as UK, pensions, ppp etc?
hi!
I am posting a small write up, just want it to be proof checked
conditions and causes of money supply and interest rate
————————————————————-
If money supply increases and interest rates dip
**************************************
there is a danger of inflation running in, because people would be encouraged to borrow money from lending institutions at a very low
rate and this would cause the business supply to spur. This would drive the economic engine and employment would rise.
However continued growth at a un-sustained growth can lead to inflation, a condition where there demand for goods at some point would be more
than supply driving up the price. This causes the price of items to rise, the value of currency would fall as it would require more money to buy a single item.
Inflation if kept under check is a good thing, however if uncontrolled then there is a chance of something called hyperinflation which is excessive money supply and
high demand driving the value of currency to near zero.
if money supply increases and interest rates increases
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If the money supply increases while the interest rates go up, then the reaction towards the economy would be a mixed one.While high interest rates would drive down
inflation(assuming high inflation is the issue), the money supply would try to ease the circulation. Depending on the state of economy, if there is high inflation existing resulting
is growing un-employment, then there is bound to be a decrease in the Aggregate demand, and people would tend to save more and spend less.This would
drive down the consumption of goods and they would tend to go down. However as this happens un-employment would further rise as less demand is dwindling.
If supply of money is more and aggregate demand is less than the value of currency would tend to go up. Exports would dry and imports would ease. Prolonged
durations of this phase may cause heavy deflation.
If Money Supply decreases and interest rates go up
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This is a case of extreme deprivation for the economy, a perfect recipe for the bringing down hyperinflation or excessive inflation. If the supply dries out and the lending
borrowing of money decreases then inflation would drastically come down. People would be restraint from spending money. value of currency would be stabilized.
If Money Supply decreases and interest rates go down
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If Money supply is gone down, the government must lower the ir to fire up the economic engine. Lower money supply means lower jobs and lower output, higher unemployment.
Doing so would revive the economy during which business would spring into action, people would buy houses and exports would go down. imports would increase and
the value of currency would tend to rise.
I would like to know the full explaination of Expansionary Discrectionary fiscal policy and its effects on the economy, as i am doing an essay for this and it is so hard to nail down exactly. Thank you regards John
hi, i just want to ask about the reasons behind the chinese current account surplus and the solutions that can be done.
I am researching changing currency exhange rates and was hoping to get a professional opinion on when in 2009 would be the best time to buy US dollars.
Hi Tejvan
I’d like to ask you about routine ways (apart from so called “printing new money”) by which the total volume of money in economy grows.
Governments or central banks “print new money” apparently only rarely, but given the fact of almost persistent inflation throughout decades, the total volume of money in the economy must grow persistently and significantly anyway.
If a central bank lends money, does it (in normal circumstances) always only turn the central bank’s cash into central bank’s (loan) debtors? Is it really absolutely unusual that by giving a new loan a central bank at the same time also increases its assets and capital (i.e. makes a capital injection into its cash, increasing that way its cash rather than using only its old cash to give a new loan)?
Also, when we are talking about “printing new money”, does it only mean issuing new money for the government expenses rather than only for the central bank’s loans, new money being issued in that or other way anyway?
Thank you very much in advance for your kind answer.
Hi, i keep hearing the word recession everywhere i turn. As i understand a recession is 4 quaters of negative growth. This is yet to occur, as official stats have not shown this..
So what i am asking is that are we officially in a recession?
The UK anyway
Hi, if the Dollar drops will it effect the Middle east who are pegged with Dollar and Gold will also be take a bull run,because gold is most preferred asset in Asia,Africa&Middle east I think people should buy more gold as secured asset always cash in hand,can you tell is Euro good or Gold to get in.
Hi, Please advice me that shall i buy Euro or Gold as Dollar is very uncertain and I Live in middle east and we are pegged with Dollar.
why and how may collision occur in an oligopolistic market?what factors may help the stability of an agreement to collude?
US will have committed more than a trillion dollars to the financial bailout,then the auto bailout and now the Economic stimulus package if it passes. Do you think if the US chooses to print the money it will turn into hyper inflation? Or will it cause countries around the world to dump dollars leaving the US with worthless money? Or will printing the money actually stop deflation? Instead of printing the money, if US chooses to issue more debt, who will buy it and what would it mean if foreign countries buy it up? And if US falls what does that mean to the rest of the world? Lots of questions, my apologies.
Hi, i’m actually in uni, but i thought i’d ask you for help since you were so helpful for my a levels. anyway, i was wondering if you could explain to me the Chamberlain model (specifically the Hotelling’s location model). I have searched all over and the only notes i found were very brief, or very confusing and complicated…
also, i would very much appreciate it if you could help me with this question;
Suppose that a plot of land is suitable only for agriculture. Can it be true that the farming industry will experience financial distress if there is an increase in the price of that plot of land? how would your answer be affected if the land could also be used for housing?
(i know that its somthing to do with rents and transfer earnings but not exactly sure – is it that when land is only suitable for farming,as land is fixed and has no alternative use, its supply will be perfectly inelastic, so any price it receives will be economic rent. thus farming industry wont be in distress coz land is fixed so even if price increases supply curve does not shift, as it does not have to compete with any other industry for this land. on the other hand, if land can be used for housing also, supply will now be more elastic, with money recieved divided into economic rent and tranfer earnings. if price of plot of land increases, supply curve will shift up as transfer earnings will now increase. so farming community faces less land and higher factor prices…?)
Hi,
Japan experienced a long period of low & zero interest rates in the 1990s/early 2000s. With UK & US interest rates approaching zero, what effect will this have on savers, borrowers and financial businesses?
With zero returns on savings, is now, as Warren Buffett suggested recently, a good time to start investing in the mattress business?
Any thoughts welcome,
Den Cartlidge
Ps – Excellent website by the way.
Thanks
What is meant by income velocity of circulation of money?
Re – 0% Interest Rates Japan + UK Commentary
Great summary with some very thought provoking stuff too.
Thanks for taking the time to answer my query,
Cheers
Den
plese send a sample essy regarding rural area and unemployment
Could you help me please with this question?
What are the main demand and supply factors that tend to determine house prices in an economy?
Thanks a lot, ilenia..
Explain carefully why house have prices fallen in the uk since July 2008?
Hi, I’ve read your posting from 2007 with regards to the effects of increased interest rates in UK Economy. I’d like to know what are the effects of a cut in interest rates will be on the UK economy as a whole. What will be the impact on companies such as British Airways and Marks & Spencer. Thank you.
Formula for rate of return on investment in an economy?
Do you know of a formula that ties together(or roughly ties together) the predicted long term rate of return on stocks accounting for technological increases(productivity) and inflation. I studied Finance in undergrad but don’t remember this equation(if there is one) and am interested in it given all the talk about the supposed devastating losses in markets. I guess the question is- What is a fair and reasonable rate of return over the long run for something like the S+P 500(real rate of return) and how do you calculate it using economics variables? It seems to me that over the long-run the stock market is still doing very well compared to inflation. This maybe more than one question-hope it makes sense. Thanks for your help
I have to debate why multinational corporations are good for developing countries, and I know the arguments for them being bad are strong so are there any really good positive arguments I could use to smash the opposition? Thankyou so much
What can the government do to mitigate falling in house prices?
Thanks
pleaseeee i need the answer to number #10
Hello,
Is there any other political influence on the falling rate of sterling, something like monetary policy or political uncertainty? And why did some news reports say inflation and weak sterling could be helpful to UK economy? Thanks.
Hello, In unit 5b economic development, it is said that free market forces influence economic growth of a developing country.
Can you please tell me what do free market forces refer to?
Are they : trade liberalisation, privatisation, deregulation, reduced restrictions on capital flows?
Also, if a country adopts protectionism, i.e reducing imports, will they wont export ?
Thank you so much.
What economic policies have the German government put in place in order to combat the currect economic problems?
thank you very much
evaluate the likely effectiveness of two policies that german government could introduce to increase labour market flexibily
Hi
Could you help me with the edexcel unit 6.Do you have, or can you provide a brief overview of the UK economy over the last 10 years, perhaps up to the current crisis. I am interested in basic data (gdp, unemployment, current account, government deficit etc) as well as any significant demand side & supply side changes. You’d think this would be out there somewhere, but I can’t find it anywhere in a simple format!
Thanks very much.
Nick
Hello,
I have the following question that i am confused as to how to go about answering.
1) Impact of persistent national Debt on UK economic growth
2) How price elasticity of demand helps UK firms devise their pricing during current economic downturn
3)What is Efficient Market Hypothesis? Discuss with evidence, the efficiency of capital markets & why market efficiency is important for stock market listed companies
Hi
I would be very grateful if you could advise if PPP is an appropriate measure of how much a certain salary in a country is worth compared to another country.
For example, the average salary in the UK is GBP 24,908. The average salary in the US is USD 45,113.
If the PPP is 1.55 between USD and GBP, is it fair to say the USD 45,113 salary is worth GBP 29,105. Thus, the average salary in the US is worth GBP 4,197 more than the average UK salary (of GBP 24,908).
If not, please could you advise of the correct measure.
Thank you for your time and advice with this. It is much appreciated
Paul
How does rapid industrialization impact standard of living both positively and negatively?
iam very satisfied with what you have done to economics students but i will like you to anwer my question which is;critically examine the effects of an increase in the money supply in any economy.
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