You are welcome to ask questions on Economics.
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 always 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 answers it also depends on my time schedule.
- The aim is not to do people’s homework for them, but, help in the understanding of economic concepts.
- The answers will not necessarily be complete. I know several of my essays on this site could be improved.
- Please Write the Questions clearly and with proper spelling. Some questions I have not answered because they were not clear what was meant.
- I will answer as a new post. Check home page of blog for new post. With question and answers
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.
If you find the information useful, you are welcome to buy me a coffee 
394 comments ↓
the importance of supply side policies
Evaluate the arguments for and against the view that major sports events are good for
the economy.
Evaluate the case that raising the legal drink age to 21 will be more effective than other method for reducing the harmful effects of alcohol. 15marks
Why do we recommend the study of economics to a business student?
Hi John
Please can you help me to find a long term RPI forecast for the next 25 years.
Thanks
What are the importance of economics
What are the importance of economics to a business student
what are the economic policies that lead low inflation in an economy.
describes how markets for electronic goods and software are sometimes dominated by
a single type of product, which incorporates the technology developed and controlled by one of
the firms in the market. Do you agree that this reduces competition and is bad for consumers
and producers? Justify your answer.
how low price can affect the market
WHY DO WE RECOMMEND THE STUDY OF ECONOMICS TO A BUSINESS STUDENT
To what extent does the government influence the monetary policy commitee when they set the interest rate?
evaluate the importance of managing
aggregate demand to bring about a sustained reduction in the rate of unemployment in the
UK economy.
whether the prices for tickets for major sporting events should be purely a matter
for market forces, or whether governments should intervene in the market
evaluate the importance of managing
aggregate demand to bring about a sustained reduction in the rate of unemployment in the
UK economy
1.Explain how exchange rates are determined ? (20)
2. Evaluate the economic implications for the global economy of falling dolla ? (30)
I would like to draw up a plan to answer this question correctly.
Thanks a lot !
what are the possible consequences/effects of protectionism with regard to the uk and the rest of the world?
over the next 10 years, should the government make greater or lesser use of measures such as road pricing or taxes on fuel to reduce road use? (15 marks) AQA
what do I need for an interview of “Economics and Management” course or PPE course in Oxford ?
What is the most important reason why there is an impovment in the economic growth in the chinese out of the following pocilies.
is it Government policy, education, investment from overseas, cheap labour or natural resources.
Please help!!!
Why is the money multiplier in the under states smaller then the inverse of the required reserve ratio? Help
Suppose we had government-madated universal access to food. How would the outcome likely differ from what is observed with health care systems of this type?
1. A firm faces the following demand curve: P = 120 – .02Q
Where Q is weekly production and P is price, measured in cents per unit.
The firm’s cost function is given by C = 60Q + 25,000. Assume that the
firm maximizes profits.
a. What is the firm’s profit-maximizing level of output?
b. What is the price at this output?
c. What are the firm’s profits at this output?
d. If the government decides to levy a tax of 14 cents per unit on this
product, what will be the new level of output for the firm?
e. What price will it now charge?
f. What are the firm’s profits?
g. If the government levies an annual business license tax of $1,000,
how do your answers from parts a, b, and c change?
MR=120-.04Q-Goes with question above. Please help this is impossible!!!
Assess the possible advantages and disadvantages of using a buffer stock scheme to control the
price of an industrial raw material.
what is price control? what is the effect of government price control?
1.How can a change in the terms of trade affect the balance of trade ? (25)
2. How can a change in the balance of tade affect the terms of trade ?
Thanks a lot !!
suggest various ways in which the supply of houses could be increased in an economy and in particular, explain how governments could help the process?
What economic condition gives an advantage to those in debt?
what will happen to the equilibrium price and quantity if there is an increase in the price of oil that is used in electricity generation?
Can you help me ? I am tryingto find out if China’s expected growth to exceed 7% is based on a nominal term or real term. I have researched but cant find any thing that concludes either way. I am trying to complete a term aper and can even start because I am unsure. Any help would be great…. Thanks
Hi! I found your site very inspiring. I have a question regarding the 1929’s stock market crash. I would really appreciate it if you could breifly explain something to me. The question is that how did a flawed capitalism of the 1920’s American economy lead to the 1929’s stock market crash? Also, what is it really meant by a flawed capitalism?
Thanks for your time and effort!
I have heard it said that “American businesses are considered, as a whole, borrowers”. What does this mean?
what effect will it have on the equilibrium of price and quantity if there is a change in the regulatory environment designed to encourage greater competition in electricity generation?
and what effect it will have if there is an inttroduction of subsidies to consumers who install green energy sources eg,solar panels?
1.What are “gain from trade ” ?
2.To what extent is “globalisation” a cost and a benefit ?
in what ways can changes in house prices effect consumer spending, and hence an economy as a whole?
1).what are the current inflationary pressures on the u.k. economy?
2).what policies have led to low inflation over the last eight years?
how to resolve unemployment associated with inflation
Please can you tell me the sites where i can find graphs about the chinese economy. for example, graph about the level of employment, export sector, import sector GDP and so on.
Differace between Cost Utility Analysis and Cost Effectiveness Analysis
hello, could you explain me why some business take the decision to stay on the short-run and not progress to the long-run? thanks
British Perestroika (restructuring) ?
A number of commentators & speculators are selling the economic doom story for 2008 – as they do from time to time. In spite of this pessimism I wonder if things really are that bad.
People say that sterling is weakening against the Swiss franc or the euro, that there is huge indebtedness in the UK and that the UK fiscal plan assumes oil prices stay high but they are now expected to come down. They say the housing mkt will go down quite a lot, that porsche dealerships are v. quiet & looking for business and there are indications that UK plc is slowing down.
Rather than recession, I feel the UK economy has (and is) undergoing a change of economic identity. A restructuring from the aspirational Thatcherite 80s ethos of small business owners, independent suppliers and home owners (‘Essex man’) etc towards a post-1997 New Labour neo-soviet (command and control) ethos which is, for many people, a profoundly downwardly mobile experience. Where a small elite in business & government (plutocracy) own and control most of the assets which are run by cheap highly motivated labour often imported from the developing world & eastern europe. The poorly educated indigenous people are simply carried along in the wake of this process as political flotsam.
So, rather than recession I see 10 years of economic restructuring where the position of the City of London as the home for global capital dictates all UK economic policy. ‘British Commerce’ and ‘British Industry’ will become sentimental political references rather than pillars of the economy.
in general what do commercial banks recieve their higher intrest rates from
Is tesco’s power a net benifit or a cost to the wider economy?
Thanks.
marian’s only wealth is a house valued at 144000 however there is a risk of soil subsidence and it could reduce the property to 16000 the chances of the property suffering is 25%.what is the fair cost of the property being insured against this risk ? and what is the most marian can be prepared to pay for insurance?
effect for increase interest rate on country and depositors
I have 2 questions if you could help me with them I would greatly apperciate it….1 Need to create an aggregate demand -aggregate supply model and explain the impact of the U.S federal Reserve cutting intrest rates on real income (y), the level of employment (l), real wages (w/p), nominal wages (W), price level (P), and interest rates (R)?
2. How do I explain the role of price expectations (Pe) in the labour markets and on the shape of the aggregate supply function. Need to to explain the Classical and Keynesian views on it?
I am preparing for my economics finals next week, and had this question on one of my quizzes during week 3 and cannot figure out the solution?
If the wage bill per unit of labor (L) is $30 and the cost of capital (K) is $200 in the short run, fill in the BLANKS in the table below.
L TVC Q MPL APL AVC TFC TC ATC MC
0 0
1 4
2 10
Those number should have been under Labor and Quantity
L Q
0 0
1 4
2 10
When would an increase in the money supply not result in an increase in inflation?
How would investment in the chinese economy increase economic growth.
how does demand and supply forces affect the price of housing?
i have to discuss this statement.
The rapid Growth in Chinese economy has been caused by the introduction of free market supply side policies such as growth in the labour market, the capital goods and the goods market .
i have to answer these questions
(a)A perfectly competitive firm uses one variable and one fixed factor of production to make a single product. The price of the fixed factor rises by 10%, the price of the variable factor by 5% and the price of the good by 5%. In the new situation will the firm produce more, less or the same amount as it did before? Show your reasoning.
(b)A monopolist operates under a production technology which allows the production of any output level at a constant average cost of $5 per unit. This monopolist sells into two distinct markets the demand curves for which are:
Q1 = 55 – P1 (for market one) and Q2 = 70 – 2P2 (for market 2).
If this monopolist operates so as to maximize total profit then calculate:
(i) Total output;
(ii) The quantity sold in each market;
(iii) The price charged in each market;
(iv) The monopolist’s total profit.
(c) Consider a firm that operates in a monopolistically competitive market. Suppose that the firm has a long-run total cost function of the form:
C = 0.001Q3 – 0.425Q2 + 85Q
where Q is output and C is total cost.
Suppose the demand curve faced by the firm is given by:
Q = 300 – 2.5P
Calculate the long-run equilibrium price and quantity for this firm.
any sort of help would be greatly appreciated
im having trouble with these questions too.
(a) Suppose that a consumer’s demand curve for good X is given by the equation: PX = 120 – √QX, where PX is the unit price and QX is the quantity purchased. Calculate the point price elasticity of demand for this good when PX = $50.
(b) A consumer spends all their income on three goods. They buy 150 units of good X when PX = $10, 350 units of good Y when PY = $25 and 220 units of good Z when PZ = $45. Suppose the price of X increases by 10% and there is no change in the price of the other goods. In the new situation the consumer is observed to buy 377 units of Y and 205 units of Z. Calculate this consumer’s price elasticity of demand for X.
(c) A village, which has a river running through it and in which 2,000 people live, has a produce market each week. In that market 2,400 dozen eggs are currently sold per week at a price of $1.25 per dozen. 1,200 people live on the West side of the river and at $1.25 they buy 1,600 dozen eggs. There elasticity of demand is – 1.5 at the current price. The remaining 400 people who live on the East side of the river buy 800 dozen eggs and have a demand elasticity at the current price of – 3. Calculate the elasticity of demand for the market demand curve for this town at the price of $1.25 per dozen.
question 2
Suppose that a firm produces good X using just one variable factor of production L (labour). Suppose the short-run production function for this firm is given by:
QX = – 0.1L3 + 6L2 + 12L
(QX are the tonnes of X produced per week and L in the number of people employed).
(a) How many people are employed at the point where the average physical product of labour is maximized? How many people are employed at the point where the marginal physical product of labour is maximized?
(b) Calculate the quantity of X being produced when average variable cost in being minimized. If the weekly wage is $360 and the price of X is $30 per tonne, how much X should the firm produce in order to maximize profit?
(c) (If the weekly wage is $510 at what price of X will the firm be indifferent between producing and closing down? If the price of X is $10 per tonne and fixed costs are $15,000 how much will the weekly profit be if the firm finds it worthwhile to employ 36 workers?
i have to discuss this statement. Please help
The rapid Growth in Chinese economy has been caused by the introduction of free market supply side policies such as growth in the labour market, the capital goods and the goods market .
(a) Suppose that a consumer’s demand curve for good X is given by the equation: PX = 120 – √QX, where PX is the unit price and QX is the quantity purchased. Calculate the point price elasticity of demand for this good when PX = $50.
(b) A consumer spends all their income on three goods. They buy 150 units of good X when PX = $10, 350 units of good Y when PY = $25 and 220 units of good Z when PZ = $45. Suppose the price of X increases by 10% and there is no change in the price of the other goods. In the new situation the consumer is observed to buy 377 units of Y and 205 units of Z. Calculate this consumer’s price elasticity of demand for X.
(c) A village, which has a river running through it and in which 2,000 people live, has a produce market each week. In that market 2,400 dozen eggs are currently sold per week at a price of $1.25 per dozen. 1,200 people live on the West side of the river and at $1.25 they buy 1,600 dozen eggs. There elasticity of demand is – 1.5 at the current price. The remaining 400 people who live on the East side of the river buy 800 dozen eggs and have a demand elasticity at the current price of – 3. Calculate the elasticity of demand for the market demand curve for this town at the price of $1.25 per dozen.
question 2
Suppose that a firm produces good X using just one variable factor of production L (labour). Suppose the short-run production function for this firm is given by:
QX = – 0.1L3 + 6L2 + 12L
(QX are the tonnes of X produced per week and L in the number of people employed).
(a) How many people are employed at the point where the average physical product of labour is maximized? How many people are employed at the point where the marginal physical product of labour is maximized?
(b) Calculate the quantity of X being produced when average variable cost in being minimized. If the weekly wage is $360 and the price of X is $30 per tonne, how much X should the firm produce in order to maximize profit?
(c) (If the weekly wage is $510 at what price of X will the firm be indifferent between producing and closing down? If the price of X is $10 per tonne and fixed costs are $15,000 how much will the weekly profit be if the firm finds it worthwhile to employ 36 workers?
http://i180.photobucket.com/albums/x121/cappu0101/graph.jpg
how can i explain this diagram ??
I was reading some of your essays about the impact of the devaluation of the dollar. At first glance, this could cause a recession in the European economy (lower inflation, lower growht). But analyzing (with the little economic knowledge i have
) i came up with the conclusion that:
- Depending on the spare capacity the economy has, the falling of the dollar can have a positive long term growth. My argument is that companies will be able to produce more (buying raw materials at a lower price -assuming they are priced in dollar-) without having to pass the cost onto the consumers… Is this possible or am i wrong?
Appreciate your help
Question : Types of Government Expenditure
Hi. I am having some problems with Economics in my first year in uni. What I would like to ask is simple really. I dont understand a question I am given….
Q. Use economics and political theory to explain why the fire and rescue service should be provided by the state. I dont want the answer….I just dont understand what this means.
Explain why a fall in the exchange rate of the pound sterling is needed for an improved
balance of payments on current account, as well as for growth and jobs
A local authority wishes to reduce the use of cars in its area and is considering imposing a congestion charge as a mean of deterring the use of cars, ie every time that a car enters the area it will incur a charge .
Using the concepts of elasticities of demand , examine what you think will be the effect on how people will travel in this area if such a charge is imposed.
When my class and I try to test the Marshall-Lerner condition it doesn’t always work. i.e. we assumed a country with just one export and one import and assumed their price elasticities added up to less than one. We gave each a price and quantity that led to a current account balance =0 for simplicity then assumed a devaluation of the exchange rate – on calculating the new quantities and then new current account balance IT IMPROVED. Why ? I can give the figures we worked with if that helps…or does the Marshall-Lerner condition have additional conditions?
the case for and against relying on the market mechanisem to produce clean alternatives sources of energy that can replace fossil fuels such as oil and coal.
(i)using indifference curves and budget lines examine the effect on an individual’s consumption of a change in income.
(ii)provide a clear explanation of what is meant by consumer surplus Can firms reduce or eliminate consumer surplus?
(i) Economists describe both short run and long run average cost curves as u shaped. Provide a brief explanation outlinig why each of these curves might be considered u shaped.
(ii) a firm in perfect competition is making losses.Using diagrams illustrate its current and long term situations
(1) What are the monetary policy committee tools which are use to set the inflation target?
(2) Explain what is meant by a balance of payments disequilibrium?
“Maintaing and expanding a nation’s stock of capital requires saving.” Evaluate and explain. Is the assumption of full employment of any relelvance?
A FIRM IN PERFECT COMPECTION IS MAKING LOSSES. uSING DIAGRAMS ILLUSTRATE ITS CURRENT AND LONG TERM SITUATIONS.
IS THE PUBLIC INTEREST BETTER SERVED BY A MONPOLY OR BY SIGNIFICANT COMPETITION BETWEEN SUPPLIERS?
Bill Gates and Warren Buffet are two of the richest men in the world. Does the concept of scarcity apply to them?
When the price of CD increased from $20 to $22, the quantity of CDs demanded decreased from 100 to 87. Waht is the price elasticity of demand for CDs? Is it demand elastic or inelastic?
If the industry under perfect competition faces a downward sloping demand curve, why does an individual firm face a horizontal demand curve?
Explain how a change in the rate of income tax is likely to affect the size of the national income multiplier ?…………..
…..would appreciate if you can give me the main points i should include ..thank you
Explain whether Supply side policies and demand side policies have contributed to rapid growth in China.
Can you also explain the disadvantage of using Supply and demand side policies. Thank You.
what are the benefits and costs of a tariff on consumers, producers and the government?
It is assumed that a market is perfectly competitive and the
current price of a product is $42.00 per case. The estimated
marginal cost function is as follows: MC=.006Q
(1) How many cases of the product should be produced
in order to maximize profits?
(2) What would happen to the product
market if a company unilaterally raised
prises of the product?
(3) What would happen to the profict maximizing level of output
if the market price of the product suddenly rose to $54.00 per
case? Why does the level of output change?
(4) Could a company benefit by advertising in the perfectly
competitive market?
(5) If a company were somehow able to monopolize the market, what
would happen to the price of the product? Would it rise or fall?
I NEED HELP
(a)What are the causes/consequences of unemployment?
(b)Is the fiscal policy effective/the best policy to deal with unemployment?
THANK YOU!
Why the fire service is a public domain and how is the fire service a merit good
Hello, i’m stuck on this issue:
With the use of a keynesian model, what are effects of an decrease in foreign incomes on UK exports? Also how does this affect the equilibrium level of income, and the balance of trade?
evalute the economics for and against the uk goverment futher increasing the tax on achol in order to reduce its consumption
what are the effects of the economic decline in america to the country vietnam?
What the benefits and the negative of reducing all taxes
Bush proposal to freeze down rates on subprime, will this have any impact in the future regarding our economy and is it going to have political consequences?
What are the effects of the economic decline in America to the country China?
Thank you
Hi
I think that your website is very interesting and inspiring.
Can you please help me with the following question, I would really appreciate it.
Explain how interest rates could be used to boost the economy. Why, then do the govenment frequently hesitate to take such steps.
Thank you.
does agricultural sector of vietnam affected to the happenings in the economy of vietnam?
what will happened to the income of business sector if their is an economic decline in america?
Does mortage equity withdrawal enhance economic growth?
what does AD stand for in ecnomic terms??
What are the effects of a decrease in foreign incomes on UK exports, how will this effect the equilibrium level of income and the balance of trade?
With the use of a keynesian model, what are effects of an decrease in foreign incomes on UK exports? Also how does this affect the equilibrium level of income, and the balance of trade?
How does the size of a country effect the economic growth rate?
What is the benefits of reducing the curreny of some country?
Essay Question:
preambe: It was reported that in the last ten years there has been an improvement in the standard of living of the average person in Namibia.
(a) If you were asked as an economist to show the average person in Namibia is better off than ten years ago, explain what information you would need. (12m)
(b) Comment on the difficulties of comparing living standards between countries. (13m)
What is the relationship between average total cost and marginal cost?
Hi. Thanks a lot for your site, it’s very helpful. Here is my question.
To what extent can the subprime crisis affect the global financial market?
if there is a increase in GDP why development is unseen
Hi. we have been asked to write an essay on the effects of decrease in the foreign income in UK exports. What exactly is meant by the term ‘foreign income’. Thanks
Explain briefly the effects of a decrease in foreign income on UK exports. Then, using diagrams based on the Keynesian model, explain carefully how this affects: (i) the equililbirum level of income, and
(ii) the balance of trase.
Discuss what policy measures could be used to return the equilibrium level of output to its original level, and the possible limitations of these policies.
would appreciate if u could plz help.
Thanks
[...] first Readers Questions has had 100 [...]
Explain briefly the effects of a decrease in foreign income on UK exports. Then, using diagrams based on the Keynesian model, explain carefully how this affects: (i) the equililbirum level of income, and
(ii) the balance of trase.
Discuss what policy measures could be used to return the equilibrium level of output to its original level, and the possible limitations of these policies.
would appreciate if u could plz help.
Thanks
is uk heading a new recession?what are the mains reasons and if so how does it defer from last one
Discuss the effect of a rise in investment on the economy..
Which businesses are likely to benefit from a recovery in the housing market?
why trade is good for you. : A short tour of economic theory (the economist october 3, 1998)
Can use please tell me where I can get a graph or chart about the recent inflation rate in china.
it will be helpful for my coursework because I am discussing about economic growth in the chinese economy.
Which Financial Institutions are most exposed to a recession in the UK?
I need help with elasticity I don’t quite understand it thanks
the way in which fiscal spending inflates prices and crowds out private spending.
what are the advantages and disadvantages of inflation???
What will the Federal Open Market Committee do with the Federal funds rate at their March 18, 2008 meeting?
1. The FOMC will reduce the Federal funds rate by one-half point or more.
2. The FOMC will reduce the Federal funds rate by one-quarter point.
3. The FOMC will leave the Federal funds rate unchanged.
4. The FOMC will increase the Federal funds rate by one-quarter point.
5. The FOMC will increase the Federal funds rate by one-half point or more.
I think it is #3. Inflation concerns will keep them from lowering rates further, growth concerns will keep them from raising rates.
I am not too sure my answer, so i’m looking for some input, thanks
hi,
how the unemployment and inflation is related to country’s economy
plzz describe me in detail with some lively examples of the world
thanks a lot
Hi
I’m studying A2 economics (edexcel).
Here is the essay title : EVALUATE THE LIKELY ECONOMIC EFFECTS OF A FALL IN THE UK’S COMPETITIVENESS.
I know some points, such as deficit on current account, slower economics growth etc. However, i don’t know how to evaluate and write a conclusion on this one. Can you please help me?
Thank you, your blog is really helpful
What is the benefits of monopoly.Identify and explain these benefits that brings to the market.
I need examples related to the benefits too.
Plz help thx….
how do countries solve their economic problem?
what would be tha price elasticity of supply of new housing?
what are the consequences of competition between supermarket affliated petrol stations and independent petrol retailers ?
-thanks-
Hey there,
I read in a text book that under a floating exchange rate a “devaluation” is not possible as a means of improving international competitiveness but a “depreciation” is. Could you please explain to me what a depreciation is as opposed to a devaluation.
Thanks so much
Evaluate the possible consequences of a falling rate of inflation for the performance of
the UK economy.
What do you think would happen if all depositors of a bank requested their deposits?
should the government build houses itself, encourage the private sector to build more houses, or play no part in the housing mkt at all? (justify your answer)
help please
Explain how monetary policy works under an inflation targeting Regime.
When would you want to own a business that sells price-elastic products? Why?
Explain with the help of diagrams the equilibrium of a firm having monopoly power in the market in the short-run and long-run?
(A) Explain the Meaning of price discrimination and the conditions necessary for price discrimination to take place.
(B) Evaluate the view that, Because price discrimination enables firms to make more profit, firms, but not consumers, benefit from price discrimination.
To pay you to teach me Economics through Cherwell Tutors will cost me about £45. If I instead advertise in the tutorial section at Daily Information I can probably get you (or equivalent) at £18.
Is this an example of market failure?
i want to know what topics to study for unit 5 edexcel economis?which are the important ones?
Will an extra $20 billion per year spent on housing have the same impact on the economy as an extra $20 billion spent on interstate highways?
Outline the technique of cost benefit analysis. How can it be applied to the assessment of investment in education projects and what are its strengths and weaknesses?
What credit can the adoption of central bank independence take for the relative stability of the UK business cycle since 1997?
What are the consequences for Ghana if it is dependent on primary products?
with econonmic scare, do you advise to invest? how do you predict inflation and interest rates will affect business?
Am I correct in assuming that electricity is an inelastic supply? Oil is in short demand, there are not many green/low emission replenishable supplies and in the short run this would explain the continued increase in prices for the consumer.
How does the Wheel of Income and the National Income Accounting relate to each other and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income?
How do business cycles impact the economy? What are the causes of business cycles of expansion and contraction? How can the Demand pull inflation and Cost push inflation occur? Explain the effects of inflation and how inflation and unemployment are interrelated. What is the NRU? What is the Structural Unemployment? If you are structurally unemployed, do you expect your jobs will come back? No! If you lose jobs to robotics at the automobile plant, are you then structurally unemployed or frictionally unemployed?
Why do we need to save more? What influences our consumption? How much can our spending create the multiplier effects on the economy? Why have businesses left it to the consumer to carry the nation recently? What are Aggregate Demand (AD) and Aggregate Supply (AS)? Why does the economy operate below full-employment GDP in the short run. What is the long Run AS ?
How we get to examine government spending (G) and taxes (T) and Foreign Sector spending? What influences these? What impact do they have on the economy? How is the tax multiplier working? What are the Automatic Stabilizers? Expansionary Fiscal policy–what is that? How does it work?
If inflation is too much money, too few goods then ho come…..Zimbabwe has the world’s highest inflation rate, at more than 100,000%, and just one adult in five is believed to have a regular job?
With no job, no money so no demand so…why inflation?
In early American banking history, banks would issue banknotes to patrons that were supposed to be backed by gold and silver. My questions is, what did the patrons give the banks to get the bank notes, and why were many banks unable to make payment on demand when the patrons tried to exchange their notes?
Hello Economists,
I am really having troubles with this question. I need help, and as soon as possible, i mean like i need it for tomorrow morning.
suppose you are the governor of the bank of canada .. and that inflation has been high and roughly constant for a number of years. you have two policy choices : you can attempt to eliminate the sustained inflation . Outline the issues involved when making this choice. list and explain the costs of ongoing inflation, and also the costs of a potential disinflation. explain how you make your policy decision.
Thank you my dearest friend. If I got an answer, I’m sending you a gift by FedEX!
why should nominal GDP be corrected for the effects of inflation?
aaaaa
Asses the impact of a decline in state pensions on income distribution, wages and income inequality for people aged 60 or above?
evaluate the view that the most effective way to reduce poverty is to increase significantly the state pension.
My Question is:
Outline and explain the demand and supply factors in the economic environment that a business specializing in retailing designer baby clothes would need to monitor?
Please. Thank you
Does low inflation always mean low interest rates?
A huge current account deficit can seriously affect the economic well being of any country, big or small. Discuss this statement and offer some policy advises to the governemnts in countries which suffer from this.
Is there an economic term for the phenomenon of ignoring (or turning a blind eye to) future risk, assuming that the current situation will prevail?
I refer to the situation we currently see of both borrowers and lenders who are being caught by interest rate rises, having seemingly assumed that interest rates would stay low.
Evaluate the view that trade union raise wages for their member only at the expense of jobs.
Im trying to find out how to estimate the regression of y on x using the linear probability model for within-group regression and random effects regression? Thanks
Why do foreigners often hold U.S. dollars? How does the holding of dollars by foreigners affect the welfare of American?
assess advantages and disadvantages for vertical integration
Consider the view that leaving the economy to private enterprise and the market system is more likely to lead to recessions and instability than to sustained economic growth.
what is the difference between disguised unemployment and involuntary unemployment
what is gross domestic income
discuss in detail with reference to pakistani economy the micro and macro economic in relation to economic planning,policies,unemploment,inflation and the globle economic growth and development explain with all related concern with suitable examples?
1)what is inflation,How it is calculated and impact on economy if it bit increases or decreases.2)what is repo and reverse repo rate and its effect on inflatoin
When Growth Slowdown, what negative thing can happen?
When exchange rate goes down, what psotive thing can happen?
What is the difference between reducing the rate of unemployment below the natural rate and reducing the natural rate of unemployment? Are the government fiscal policies the same?
(a) Suppose that a monopolist faces the demand curve QD = 12 – P. For this monopolist (i) work out TR at each price from $12 to $0; (ii) work out MR; (iii) plot the demand and MR curves on the same graph; and (iv) calculate MR when P = $10, $6, $2.
b) Suppose the monopolist described in part (a), faces a Total Cost situation given by the data in the following table:
_____________
Q TC
_____________
0 10
1 17
2 18
3 21
4 30
5 48
_____________
Plot the Total Revenue and Total cost Curve for this monopolist. From this graph work out firms profit maximizing output level. What is the total profit at this output level?
(10 Marks) (c) Suppose the demand curve faced by the monopolist described in parts (a) and (b) above becomes QD = 5 – ½P. If nothing happens to its costs, will this firm continue to operate in the short-run? Explain your answer
Hi there, hope that you can help me please…
My first question is:-
1> explain why two sectors of the UK economy are growing faster than other sectors ?
and
2> explain how economists define ‘full employment’?
and last one
3> explain 3 different ways in which full employment can occur and identify any dissadvantages of each?
Thank you very much in advance
Assess the case for and against the government intervening to raise the disposable income of
workers on low pay.
What economic variables that can be affected positively by the economic slowdown. What are the effect of the economic variables that may be affected positively due to the economic slowdown???
help me please
1. neo colonialism and commodity trade is one of the factors contributing to the changing patterns of world trade. What does this mean.
2. Explain the effects of trading bloc on member and non member countries.
Can you please differentiate between the causes of once-off inflation and sustained inflation?.
Due to economic slowdown, when Inflation Happen, what good things can happen?
Help please
Explain the main factors which affect population size.
Plz help
Explain the main factors affecting population size.
What effect has the Euro had on consumer spending in the UK?
i am thinking of doing economics,
but i am not sure what subjects i need to do well at school and what kind of posibilities and challenges are there to face. also what kind of of econpomics are there to choose from and which one is ok for a young man who is in year 10 and is preparing for the path ahead of him. plz help me achieve my goals.
Before investing in the development of Concorde, the United Kingdom government decided
against undertaking a cost benefit analysis of the project.
Using your economic knowledge, evaluate the case for and against a government
undertaking cost benefit analysis of projects such as Concorde
Hi there,
Thank you for your website, it has certainly helped me in understanding various aspects of ecnomics alot better.
Please can you help me with these questions.
a)An explanation of supply-side economics.
b)The remedies supply-side economists put forward to reduce unemployment.
c)Evidence of governments who have used supply-side measures to reduce unemployment and a discussion of what effects those measures have had
Thank you for your time, greatly appreciated…
Regarding fuel duties which one is correct:
1) The UK, France, Italy and Germany are all members of the EU and therefore charge a uniform EU rate of duty equal to 67% of the purchase price of each litre of unleaded petrol
2) The rate of fuel duty levied in Japan is almost twice that charged in either Germany or France thus giving Japanese motor manufacturers a great incentive to produce small, efficient vehicles
3) From the following list of countries: Italy, France, Germany and Canada, France has the highest fuel duty.
Thanks for all your help!
How much US economic policies are responsible for its current account deficit?
Which of the following, other things the same, would make the price level decrease and real GDP increase?
A. long-run aggregate supply shifts right
B. long-run aggregate supply shifts left
C. aggregate demand shifts right
D. aggregate demand shifts left
thanks for the help
“To what extent can government use demand management policies to reduce unemployment without affecting inflation?” (60)
can you please help me with this essay
Explain the applicability of Harod-Domar model to LDCs and its limiting factors during application.
Hi please i will like you to help me on how stock exchange can help in increase in GDP of an economy .Thanks for the essay
hi if a country face food scarcity what solution should the economist render thanks.
Hi,can you help me examine the applicability of the harod-domar theory to developing countries and its limitations during application
2 (a) Explain the possible advantages of privatisation. (20 marks)
please could you explain to me what is meant by welfare loss and how it is shown on a diagram?
what is consumer surplus??
Discuss the economics reasons why there is high unemployment rate in 16-18 year old workers. (10 marks)
how can the fall in general public spending affect a business?????
[...] first Readers Questions has had over 150 [...]
Hello
I am a business student and I would like to know how does the concept of price elasticity of demand help the government when setting indirect taxes?
what is the contribution of Information Technology towards economy in country?thanks
to what extent would you consider that the european car industry has benefited from the impact of globalization and greater free trade? explain fully the reasons for your evaluation?…..
thank you …..
Year GDP $ Billion CPI
at constant (Year 1=100)
prices
1 181.2 100
2 185.6 105.3
3 192.3 107.5
4 199.5 109.2
5 206.8 110.4
6 213.2 113.2
7 218.5 117.2
8 225.4 120.3
9 234.5 125.6
10 245.5 131
Year Unemployment rate
1
2 6.2
3 5.9
4 5.4
5 5.7
6 6.3
7 6.7
8 6.3
9 6
10 4.9
***FIGRUES FROM: YEAR ONE TO TEN***
Private Official Industrial
business interest production
investment rates (%p.a) (Year 1 = 100)
$ billion
30.61 4.5 100
32.12 4.25 104.2
31.78 4.25 110.6
32.56 4.25 116.2
32.45 4.5 119.3
33.12 4.25 118.5
40.25 4.5 120.8
44.85 4.75 124.3
49.35 5.25 130.2
56.84 5.75 136.7
****FIGURES FROM YEAR ONE TO TEN****
Motor vehicle Book value
sales of inventories
(‘000) (retail)
$ million)
341 840
345 858
356 866
365 872
380 893
379 957
382 965
394 965
445 967
513 961
(a) Draw conclusions as to the state of the economy in Year 10, justifying your analysis by reference to the data provided.
(b) Recommend appropriate demand management policy measures to the government of australia of the day
What are the key economice diagrams for 2882 and 2881 and what does COBA stand for in Economics 2882
Recommend appropriate demand management policy measures to the government
Thnk u
Draw a graph showing that what is demand management policy…? and how does it help the government to measure demand management policy.?
cheers
Explain the terms monetary policy and fiscal policy and compare the ways in
which they influence the UK economy
Hi there,
This is quite a difficult question, but could u please suggest ways inwhich i could improve my general analysis of economic theory. How many lines say, should i aim to write when analysing a theory?
Evaluate the view that the separation of ownership from control in large firms inevitably causes
diseconomies of scale.
Why should one be cautious in using per capita GDP as a means of comparing standards of living?
2. From an economic perspective, provide an explanation of the following quotation: “In an underdeveloped country, don’t drink the water; in a developed country, don’t breathe the air.” (Jonathan Raban, 1976).
3. Compare Freidman’s view on the best way to stimulate the economy with that of
Keynes. Whose views do you think are most correct? Explain why.
4. Explain why the Canadian Economy can be identified as a mixed market economy.
5. Explain how both inflation and deflation negatively affect a country’s economy.
6. List and briefly describe the positive and negative attributes of multinational corporations.
Why should one be cautious in using per capita GDP as a means of comparing standards of living?
2. From an economic perspective, provide an explanation of the following quotation: “In an underdeveloped country, don’t drink the water; in a developed country, don’t breathe the air.” (Jonathan Raban, 1976).
3. Compare Freidman’s view on the best way to stimulate the economy with that of
Keynes. Whose views do you think are most correct? Explain why.
4. Explain why the Canadian Economy can be identified as a mixed market economy.
5. Explain how both inflation and deflation negatively affect a country’s economy.
6. List and briefly describe the positive and negative attributes of multinational corporations.
Choose two of the following questions. Provide full responses using your economic background from the course. Provide detailed information to justify and clarify your responses. Use complete sentences and cite all sources used.
1. Explain what the costs of economic development to the Earth and its environment are. In relation to the course material, discuss various Canadian and/or international responses to the issue of sustainable development. Does current Canadian Economic Policy reflect any of Thomas Malthus’ theories of growth?
2. The Kyoto Accord is an international ‘treaty’ to reduce greenhouse gases globally. In Canada, it has been determined that following this treaty will damage the economy. How is this so? Outline and describe how this would happen. Is there an alternative?
3. “Money has steadily become more abstract.” Explain this statement with
reference to the past, present and future of money.
1. Why should one be cautious in using per capita GDP as a means of comparing standards of living?
2. From an economic perspective, provide an explanation of the following quotation: “In an underdeveloped country, don’t drink the water; in a developed country, don’t breathe the air.” (Jonathan Raban, 1976).
3. Compare Freidman’s view on the best way to stimulate the economy with that of
Keynes. Whose views do you think are most correct? Explain why.
4. Explain why the Canadian Economy can be identified as a mixed market economy.
5. Explain how both inflation and deflation negatively affect a country’s economy.
6. List and briefly describe the positive and negative attributes of multinational corporations.
Discuss the likely economic impact on absolute and relative poverty of China’s rapid economic growth?
Explain the distinction between “real GDP growth and the “trend rate of growth” (6marks)
Hi there. Found this side on google.
Here’s my question. What’s the relationship between a company’s economy and it’s stock market?
Is it always true that the stock market reflects a country’s economic conditions?
Thanks.
To what extent is it necessary for the government in a developing country over-reliant on tourism to consider the expension or agriculture and manufacturing?
Using your economic knowledge, assess the possible consequences of a decision by
the UK government not to join the European single currency within the next decade.
(30 marks)
why is political stability needed to attract FDI?
How do I send you a coffee ?? What does the postal address mean ? it’s your address or mine ? if yours, so what is your address ?
This one is about flexibility in the labour market . I am wondering why globalisation have made a contribution to the increase in flexibility . Is it becoz firms face a fierce competition so they have to hire workers only when they need them ? I dont know whether thats the proper explanation ~ Thanks ^^
for many years american referred to people’s republic of china as communist. Why would that label be misleading today?
how far has china evolved into a market economy? To what degree has this evolution contributed to china’s economic growth?
Tax changes in recent years have brought a significant increase in tax burden in the uk expressed as a percentage of GDP. Can you please assess the possible impact of such an increase.
Do you agree that there is no need for competition policy? justify your answer.
Can you please predict questions on Unit 6.
How will distance affect global trading?
what are the importance of economics? in our life and in our country?
Expansionary stance of monetary policy will lead to a lower interest rate thus discouraging hot money (portfolio I) leading to less outflow of Y and improve CAD. (based on lecturer’s notes)
Doesn’t the discouraging of portfolio I lead to spending more than S and Outflow>inflow thus leading to worsening of CAD???
I’m awfully confuse now. Please clarify and thank you.
From my previous question on 06.16.08 at 2.57pm, CAD refers to Current Account Deficits. Regardless to say the answer was helpful.
The monetary policy is the control of interest rate with buying or selling of securities through open market operation (OMO).
How does the OMO process works when the Government buys securities from public to decrease interest rate (r/i)?
Based on my opinion from my lecture notes, the Government buys securities from public through RBA (Reserve Bank of Australia).
The RBA will buy securities from the commercial bank. This will cause the supply of money in the ESA (exchange settlement account) to increase. The supply of money is put into the cash market thus causing the cash rate and r/i to decrease.
Is the OMO process correct? If it is not please explain and thank you.
How has homelessnes increase in past two decades/
Can you please answer me this question..
How is the market of raw coffee determined on the world commodity markets?
how do markets and the price system help the economic sectors to solve the problem of scarcity ? cite examples of good and not-so-good solutions to the economic problem (scarcity)
1.Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support requiring airbags? What normative reasoning is used?
2. Explain why a new forklift sold for use in a warehouse is a final good even though it is fixed investment (capital) used to produce other goods. Is there a double-counting problem if this sale is added to GDP?
pls help me
A company issues stock and sells it in a primary market at a fixed price. In that case, do fluctuations in the stock market affect specific companies? In other words, when the stock value of company crashes, is that company affected at all?
As well, how does the stock market affect the economy? I understand the purpose it serves in raising funds for companies but not the role it plays for the investors? Anything to do with saving?
Sorry if it is confusing… Any sort of help would be greatly appreciated.
Suggest how the current economic policy of India has reduced unemployment in the present scenario
What economic factors should I consider if I want to know the relationship between innovation and the presence of patents/copyrights? Do copyright/patents (generally Intellectual Property Rights) stifle innovation? Does it slow down economic growth?
Hey,
I’m currently looking at stagflation in the mid 1970s in the UK, and the policies the then-Government undertook to solve the economic crisis.
Was the Government right to widen the budget deficit 1974-5 in order to stimulate demand, or should it have run less expansionary policies to temper the effect of rising prices?
Was there any policies the Government could have enacted to try and reduce both the rate of inflation and unemployment simultaniously?
1.) Using Supply and Demand curves, illustrate the effects of a price floor that is set above the equilibrium market price. Also, briefly explain what happens. Does a shortage or a surplus result from this government policy? (40% of assignment grade)
2.) Using Supply and Demand curves, illustrate the effects of this tax on sellers. Assume the demand is very inelastic and the supply is very elastic. Using your graph, explain who will actually pay most of the tax burden (buyers or sellers?). You do not have to calculate slopes, intercepts, or elasticities. Just illustrate the tax burden and explain who will pay most of it. (40% of assignment grade)
3.) As we discussed in class, the minimum wage is a mixed blessing. On one hand, people who have low wage jobs will undoubtedly benefit. But, the minimum wage makes it more difficult for businesses to hire and retain new workers. It may also lead to greater unemployment, as businesses are forced to lay off some of their workers. In your opinion, is this trade off worth it? Should the government increase the minimum wage? (20% of assignment grade)
Can you suggest economics empirical thesis about patents, copyrights, and innovation? Any possible data sources?
Least developed countries are not benifited by the foreign loan. however, the amount of best stock is increasing in these countries. What would be the measures to control foreign debt? and why such countries are not benified from foreign debt?
Pls i would be highly appreciated u gives the answer.
what is the answer for the advantages and disadvantages of price control????
USA’s trade deficit with China was $201.6 billion in 2005, an all-time high for a trade deficit with any country. Explain some possible causes of a balance of trade deficit and consider if USA should be concerned over its trade deficit with China.
structural vector autoregression model
When building an all-electric home, the power company advises that an extra $3,000 spent initially for insulation and other energy-saving devices will reduce your electric bills from $250 per month to $200 per month. Using a discount rate of 8%, and assuming you stay in the house 8 years, is this a good deal?
1. how do different types of economy address the economic problem?
2. explain what is meant by the short run and long run in economics. how does the concept of diminishing returns affect costs in the short run,and why is it not an issue in the long run?
3. Discuss, with examples, the most common types of market in the UK today?
How could you calculate the price elasticity of demand for petrol in the united states when the figure is 0.48.
Market research on retail petrol prices in new zealand and the relationship of price elasticity and market power with diagrams.Please explain.
I am due to sit an exam in a few weeks and have been given the complusory question about the topic of:
“Business Strategy and the Strategic planning process within your organisation”
Do you know how i would go about answering this question- i am currently working for a manufacturing Global company called Smurfit Kappa who specialise in the paper and packaging industry.
Any help would be greatly appreciated.
Explain how the abolition of property in land and application of all rents of land to public purposes would affect the US economy and society in general? Marx thought these changes would make society more egalitarian. What do you think? Do you agree? Explain.
The main objectives of government macroeconomic policy are often asserted to be full employment, stable prices, balance of payments equilibrium and a high growth rate. Consider some of the difficulties facing a government in its attempts to attain these objectives simultaneously.
[25m]
Thank you.
I would greatly appreciate it if you could answer the following questions
What are the effects of increased investment on aggregate demand in the short term and the long term
Account for the estimated 3.8 million increase in the number of new houses needed over the next 15 years in the UK
Thank you for your time
Hello im stuck on finding information on the modern state and forces of demand and supply can u help me? thanks
Who has read the book Naked Economics: Undressing the Dismal Science by Charles Wheelan or The World that Trade Created by Steven Topik???
If planned aggregate expenditure (PAE) in an economy equals 2000 + .8Y and potential output (Y*) equals 9000, then this economy has:
a. an expansionary gap.
b. a recessionary gap.
c. no output gap.
d. no autonomous expenditure.
Which one is the answer?
And also this:
If the natural rate of unemployment equals 6% and the actual rate of unemployment equals 5%, then the unemployment rate due to cyclical unemployment equals:
a. -1%.
b. 1%.
c. 10%.
d. 12%.
Please explain the following
” what do you understand when a country’s economy shows negative economic growth coupled with strong persistant inflationary pressure.Kindly suggest me the policy options available to eliminate or reduce the adverse effects this situation may have on the economy.
Kindly analyse Fiscal policy,Monetary policy and Do nothing policy and give your thoughts on which policy is the best one.
Please explain about Stagflation and its role in unemployment and prices rising.
Your help is much appreciated!!! Thanks.
examine the different types of unemployement as they occur in developed and less developed countries and their causes.
And for what reasons do you consider that the scope for domestic demand management on keynesian lines will be limited in less developed countries.
i want to know after i graduate from college in what job i will work
Suppose that a firm produces good X using just one variable factor of production L (labour). Suppose the short-run production function for this firm is given by:
QX = – 0.1L3 + 6L2 + 12L
(QX are the tonnes of X produced per week and L in the number of people employed).
(a) (10 marks) How many people are employed at the point where the average physical product of labour is maximized? How many people are employed at the point where the marginal physical product of labour is maximized?
(b) (10 marks) Calculate the quantity of X being produced when average variable cost in being minimized. If the weekly wage is $360 and the price of X is $30 per tonne, how much X should the firm produce in order to maximize profit?
(c) (10 marks) If the weekly wage is $510 at what price of X will the firm be indifferent between producing and closing down? If the price of X is $10 per tonne and fixed costs are $15,000 how much will the weekly profit be if the firm finds it worthwhile to employ 36 workers?
trade unions are responsible for providing australian workers with some of the best work conditions in the world
Explain why firms experience dimishing returns in the short run.
According to Emerson: “want is a growing giant whom the coat of Have was never large enough to cover.” According to economist, why does “want” exceed “have”?
Can you explain what does it mean by excess capacity theorem in a monopolist competitive market? Why long-run equilibrium is attained not at the lowest average cost?Thanks a lot=)
1. In a market economy, the market mechanism can achieve all the following except
A. Signaling changes in consumer tastes.
B. Causing supply to respond to changes in demand.
C. Eliminating excess supply and demand.
D. Ensuring a fair distribution of all types of goods.
2.All other things being equal, if strawberries and cream are complementary goods, a fall in the price of strawberries will
A. Shift the demand curve for strawberries to the right.
B. Causes movements along the demand curve for cream.
C. Shifts the demand curve for cream to the right.
3. If the price elasticity of demand for butter is -2, a 1% decrease in the price of butter will
A. Reduce the quantity demanded by half.
B. Increases the quantity demanded by 2%.
C. Increase the quantity demanded by 0.5%.
D. Double the quantity demanded.
i want the answers for those multiple choice questions and i will be thankful to you if u tell me y those answers are correct……. bi… Tc…..:-)
hey y could not find answers for the questions which i asked before… from where i can find the questions answers?????
1. The Washington Post featured an article about aging baby boomers’ changing preferences regarding work and leisure. Youthful ambition for money and power is giving way to a mature desire for “quality of life”.
“There’s more of an interest in having a balance between work and life,” said Linda Fisher, research director at the AARP. “Part of that is because there are increasing numbers of boomers who have not only children to take care of, but who also have issues with aging parents who need care….Ten years ago, I wanted money, and I wanted the ability to sort of make a name for myself. Personal recognition was incredibly important to me,” she recalls. “Now my goal isn’t money as much, and personal recognition isn’t as important.” (Singhania, Lisa, “Boomers Weigh Work Tradeoffs; Some Focus on Flex Time and Values; Others Seek Security.” The Washington Post December 29, 2002: A23.)
a. Assume the indifference curve to the right represents the preferences of the worker when he or she was young. Draw a new indifference curve in the diagram to illustrate how the worker’s preferences between work and leisure change once he or she is old.
b. Consider the following job options: The first is a low-wage job paying $10 per hour. This low-wage job provides flexibility in that the worker can choose the number of hours worked per week. The second is a high wage job, paying $15 per hour. Accepting the high-wage job, however, means a commitment to at least 40 hours of work per week. So it is not possible to accept the high-wage job and then work 20 hours a week (and thereby enjoy 148 hours of leisure). Draw and label these two budget lines on a graph with leisure (hours per week) on the x-axis and income (dollars per week) on the y-axis.
c. By drawing a set of indifference curve on the figure, show that a person with a sufficiently strong liking for leisure will choose to work at the low-wage job rather than the high-wage job.
why does a firm prefer to remain small??
how to solved unemployment by tools of monetary policy
Explain why the following example is not a perfectly competitive industry and be sure to justify your answer: Even though one firm produces a large portion of the industry’s total output, there are many firms in the industry, and their products are indistinguishable. Firms can easily exit and enter the industry.
Assuming that corporate executives are to blame for the current financial crisis, what would be some of the reasons why they are to blame?
My professor asked me to write a thesis regarding the accession of Bulgaria into the EMU.
The thesis has to be based on the interplay/conflicts of Maastricht criteria vs. Optimum Currency Areas (OCA) theory. The thesis also has to incorporate regressions based on secondary data.
I am lost, even though I looked at the theories again. Please help me formulate a research question!
Using the simple Keynesian macromodel to assess the implications for equilibrium GDP and the level of savings of an increase in the saving function
What are the advantages and disadvantages of leaving pension provision to the private sector? Could you please explain with the help of economic thoery?
Suppose the government places a sales tax on firms in a monopolistically competitive industry. Explain what happens to the equilibrium price and the number of firms in the industry.
Assume that Product X is produced in a perfectly competitive industry and that product X yields costs to individuals who are neither consumers nor producers of Product X.
a) Using one correctly labeled graph, show the industry output and price under each other following conditions.
i) The industry ignores the externality.
ii) The industry produces the socially optimum level
of output.
Assume that the market is producing at the level of output you identified in part (i)
b) Identify one policy the government might use to achieve the level of output you identified in part (ii)
HELP!!!!
Mr JOHN
i just wanna know how this liquidity crunch can effect economy of any developing country like pakistan as its tight monetary policy here(NOT LIKE ALL OVER THE WORLD) but inflation is also in double digit around 12%.how to deal with that n how can it become advantageous or disadvantageous for pakistan.
thanx a lot
Hi, I hope you can help me with this question.I was just wondering would tea and milk be complements or substitutes? Because it seems to me their not really either but I have to draw demand and supply graphs to demonstrate. Please help and thanks.
So why were so many drug addicts and felons pushing subprime mortgages and why did the Florida justice system refuse to deal with this problem?This was also occurring in my homestate.This is not just about greed this is deliberate.The Miami herald did an expose on the situation.
The media is just lying about how bad this is.
I discovered a network of people laundering money through the court system and the media wanted nothing to do with it but the FBI told me to be careful if I continue investigating.They claim not to have jurisdiction or the knowledge of the criteria they use for investigating laundering.Hmmmm they did find it within their scope to investigate nude online pictures circulated of a celebrity. WOW what skewed priorities!
What statements of positive economics are used to support requiring airbags?
What normative reasoning is used?
how does risk create economic burden
How does knowledge of the price elasticity of demand for cars helps the government to predict the change in tax revenue of an increase in car licences?
discuss the implications of the different definitions of horizontal equity?
I’m not sure how to answer this question, information on horizontal equity very limited.
What is meant by the term inflationary noise ?
hi,my recent essay question for homework was “Are monopolies always bad?”
Hi, may I know how emerging country such as Malaysia can help US in recession?
Hi. May I know how emerging country like Malaysia can help recession in UK?
Define deflation . discuss its merits and demeritd?
My Question is, ” Why Firm have economies of scale and what are the reasons, please explain with the help of top 4 world class large-sized companies?
what is the primary advantage of built in stabilizers over discretionary fiscal policy
Could you please explain how simple Q=100-5p demand function is created, with real example? And what its curve says?
Why is the UK’s public finance position considered worse than other major economies when the UK has the lowest percentage of National Debt to GDP when compared to these other economies? (i.e. UK debt 43%, Germany 64.9%, France 63.9%, US 72.5%, Italy 107%, Japan 194%)
how does inflation and recession affects a company operations?
What kind of money supply manipulation might the Fed perform in the face of a serious economy-wide inflation? Explain what the Fed might do to the money supply?
The U.S. govt. often runs deficits and it must sell govt. securities in order to finance those deficits. Describe the mechanics and components of the so-called “crowding out” effect associated with the use of deficit creating fiscal policies.
Hi,
May I know what is share maximization and revenue maximization?
TQ
Hi, may i also get to know what is realy meant when it is said that the monopolist is more inneficient than the competitive firm in micro economic analysis.
Is it possible 2 calculate elasticity of demand for alcohol consumption at a federal level? Why Or Why not?
What is the relationship between the demand curve, and average total cost curve for a firm selling in a monopolistic competitive market, assuming the firm is earning economic profits?
A monopoly is currently making supernormal profits. what would happen to both the output and profit of the firm as a result of an increase in wages which raises the firms marginal and average cost?
China’s exports have decreased, and its growth as well, since the big economic crisis, but my question is
How much does this affect its GDP because i heard they export to countries that are closer, like japan for example instead of the states.
Please help!
Can you tell me: Is speculation on a hot real estate market a counter example to the law of demand or indirect evident of it?
Thanks
Hello,
i have savings in GBP about 30000, the rates going down very quikly , what do you advise, to sell them?
hi, I have two questions:
1) is it necessary to regulate/control google and ebay? Why?
2) if yes, then how would you do that?
Hello. Can you tell me why anybody would buy US treasuries now with little to no yield when you can just park your money in an FDIC money market account or CD and get more? Surely with FDIC insurance coming from the same place as the implied guarantee of US treasuries money markets are a much better place to be, correct? This is a treasury bubble without a doubt yes?
In 1800, what was the Stock Exchange General Index now the FTSE All Share Index, opened at 19.91. One hundred and fifty years later in 1950 it opened at 42.19.
In a hunded and fifty years it doubled in value. The footsie all share reached a high of 3400 in AUG 07; it had gone up eighty times – 8000 %. As stock excnange prices represent the real value of goods and services hasn’t real inflation over the last 58 years been approx 120 % per annum; all driven by leverage? Isn’t the current credit crunch really the explosion of a huge credit bubble going back to 1950 starting with HP?
1: discuss the various sources by which a firm can source for it resources.
2: market equilibrum and market disequilibrum are not permanent but highly volatile a process,discuss.
[...] first Readers Questions has had over 150 [...]
Hi,
What is meant by ‘first best pricing’?
Thanks
Tom
Sorry, it was meant to be ‘first best distribution’
Apologies
Greece has a current account deficit of almost 14% (!) of gdp and greece is a member of the EU. How can it resolve the problem if it cannot devalue the currency ( the quick way out, which was used in the past when the greek drachma was around) and when productivity is so low and consumer spending is holding up due to EU money/subsidies and “black” money? Are we in for a crisis and if so what does it mean for the EU?
Using the standard demand and supply model explain what the level of employment and wages should be. Explain the impact of frictional unemployment (i.e., matched demand and supply) on the level of employment. How do efficiency wages and insider-outsider models affect the wage rate and level of employment? How would cyclical unemployment affect labor demand, employment, and the wage rate?
Hi there i just wondered if there was any chance you will be able to answer the following question.
Explain the effects of an unexpected increase in Consumers’ Expenditure on GNP in an open economy with a government sector, using both Keynesian cross and 45 degree diagrams. (60 Marks)
Then explain the effect of the GNP change on
(i) the budget balance (20 Marks)
(ii) the trade balance (20 Marks)
In the answer i am meant to explain the process by which the economy moves to a new equilibrium, including the multiplier and use diagrams wherever possible and explain them fully. Aslo to explain some key macroeconomic mechanisms. Use diagrams based on the simple Keynesian model.
Thank you for your time and help.
could you please give me the likely effects of an increase level of interest rate on a commercial bank.
Suppose that the supply and demand equations for widgets are given by the following:
Qd = 150-7p
Qs = -30+2p
At the market equilibrium price and quantity, what is the elasticity of demand?
I did -7(20/10) the coefficient before price multiplied by price of quantity
Suppose that the supply and demand equations for widgets are given by the following:
Qd = 150-7p
Qs = -30+2p
At the market equilibrium price and quantity, what is the producer surplus?
Suppose that the individual demand curve for football tickets is given by:
Qd = 6 – P/20
and the price of football tickets is $40.
What is the consumer surplus of the individual with this demand curve facing this price per ticket.
10 points Save
Suppose that the individual demand curve for football tickets is given by:
Qd = 6 – P/20
and the price of football tickets is $40.
Suppose that if you want to buy ANY game tickets, you are forced to buy all 6 tickets at $40 each. What is the consumer surplus of the individual?
Thankyou for reading and have a great day
I have two questions I really need help on:
1. Why might the public ignore future tax liabilities when making spending decisions?
2. How can a smaller government fiscal deficit cause a larger international trade surplus?
I need structural guidance on these two questions. Your help will be greatly appreciated. Thanks.
1) What determines the world price of grain?
2) How does the EU agricultural policy influence the world market price on grain?
3) What will happen to the price of grain if the EU removes all subsidies on the grain area?
4) If all support in the world was removed from the grain market would there then be perfect competition on this market?
EFFECT OF UNEXPECTED INCREASE IN CONSUMER EXPENDITURE ON GNP with a goverment sector using both keynesian cross and 45 degree diagrams
This question is about terms of trade between two countries in two goods, China and France, Cola and Chocolate. The following are opportunity costs for both goods.
Chocolate – China 2 cola; France 3 cola
Cola – China 1/2 chocolate; France 1/3 chocolate
Who benefits more at each of the following terms of trade?
2.25 cola per chocolate
2.5 cola per chocolate
2.75 cola per chocolate
I am curious, is it safe to assume that the terms of trade where each country benefits equally lies directly inbetween their respective opportunity costs? How do you calculate the net benefit for an individual country?
Explain the effects of an unexpected increase in consumer’s Expenditure on GNP in an open economy with a government sector, using both keynesian cross and 45 degree diagrams.
Then explain the effect of the GNP change on
(I) the budget balance
(II) the trade balance
Explain the effects of an unexpected increase in Consumers’ Expenditure on GNP in an open economy with a government sector, using both Keynesian cross and 45 degree diagrams?
could you please help me in this essaqy question thanks
if a developing country has a comparative advantage in primary products,should the government allow market forces to dictate the pattern of trade?
1. The following table gives how many identical resource units (ru) it takes to produce 100 cars and 5,000 computers in the United States and China.
United States China
100 cars 16 ru X
5,000 computers X 15 RU
Fill in the two blanks with a number for the ru that it takes for China to produce 100 cars and a number for the ru it takes the United States to produce 5,000 computers. United States having an absolute advantage in the production of both cars and computers but also shows that it does not pay for either country to trade with the other—neither country has a comparative advantage in the production of either good.
Explain the effects of an unexpected increase in consumer’s Expenditure on GNP in an open economy with a government sector, using both keynesian cross and 45 degree diagrams.
Then explain the effect of the GNP change on
(I) the budget balance
(II) the trade balance
could you please help me on this question plzz. thanx
Using an appropriate diagram, explain the predicted macroeconomic effects of an insufficient level of investment and discuss the factors that may cause and increase in business investment in the Australian economy.
This is a take-home essay due on Tuesday 3rd March. Please help me!
Why are there more pounds stirling in the UK than 30 years ago? Did the Bank of England simply print more money over the years?
is apple a oligopoly or monopolistic competition?
How do you calculate the annualized % change of the implicit price deflator on a quarterly basis? Using the data from economy.com 08Q4 =.51, How did they get that number?
how to illustrate the world financial crisis by using the graphs of aggregate demand and aggregate supply?
Can you help me if you plz before Thursday 17/3/2009?
how and why would a sudden decrease in gross investment influence aggregate demand in the USA?
discuss the worldwide movement towards the market economy and away from the planned economy
How can a government increase the rate of economic growth in an economy?
define syhological pricing and exsplain what it means
identify 5 main characteristic of common stock
Evaluate the effectiveness of monopolistic competition & oligopoly competition in meeting the needs of consumers & producers(20 marks)
What do economists mean when they say that monetary policy can exhibit cyclical asymmetry? Why is the possibility significant to policymakers?
im having trouble with these questions
(a) Suppose that a consumer’s demand curve for good X is given by the equation: PX = 120 – √QX, where PX is the unit price and QX is the quantity purchased. Calculate the point price elasticity of demand for this good when PX = $50.
(b) A consumer spends all their income on three goods. They buy 150 units of good X when PX = $10, 350 units of good Y when PY = $25 and 220 units of good Z when PZ = $45. Suppose the price of X increases by 10% and there is no change in the price of the other goods. In the new situation the consumer is observed to buy 377 units of Y and 205 units of Z. Calculate this consumer’s price elasticity of demand for X.
(c) A village, which has a river running through it and in which 2,000 people live, has a produce market each week. In that market 2,400 dozen eggs are currently sold per week at a price of $1.25 per dozen. 1,200 people live on the West side of the river and at $1.25 they buy 1,600 dozen eggs. There elasticity of demand is – 1.5 at the current price. The remaining 400 people who live on the East side of the river buy 800 dozen eggs and have a demand elasticity at the current price of – 3. Calculate the elasticity of demand for the market demand curve for this town at the price of $1.25 per dozen.
question 2
Suppose that a firm produces good X using just one variable factor of production L (labour). Suppose the short-run production function for this firm is given by:
QX = – 0.1L3 + 6L2 + 12L
(QX are the tonnes of X produced per week and L in the number of people employed).
(a) How many people are employed at the point where the average physical product of labour is maximized? How many people are employed at the point where the marginal physical product of labour is maximized?
(b) Calculate the quantity of X being produced when average variable cost in being minimized. If the weekly wage is $360 and the price of X is $30 per tonne, how much X should the firm produce in order to maximize profit?
(c) (If the weekly wage is $510 at what price of X will the firm be indifferent between producing and closing down? If the price of X is $10 per tonne and fixed costs are $15,000 how much will the weekly profit be if the firm finds it worthwhile to employ 36 workers?
And also these… please help if u can
thanks so much
Suppose that a firm produces good X using just one variable factor of production L
(labour). Suppose the short-run production function for this firm is given by:
QX = – 0.1L3 + 6L2 + 12L
(QX are the tonnes of X produced per week and L in the number of people employed).
(a) (10 marks) How many people are employed at the point where the average physical
product of labour is maximized? How many people are employed at the point where the
marginal physical product of labour is maximized?
(b) (10 marks) Calculate the quantity of X being produced when average variable cost in
being minimized. If the weekly wage is $360 and the price of X is $30 per tonne, how
much X should the firm produce in order to maximize profit?
(c) (10 marks) If the weekly wage is $510 at what price of X will the firm be indifferent
between producing and closing down? If the price of X is $10 per tonne and fixed costs
are $15,000 how much will the weekly profit be if the firm finds it worthwhile to employ
36 workers?
Thanks
Hi!
1.What are the factor that causes petrol ( paraffin, gas, oil and etc.) prices to rise, all of the sudden goes down?
2.Can we say a rise in petrol price causes inflation?
2. (3) Illustrate a monopolistically competitive firm in a short run equilibrium where profits are greater than zero. Explain the transition to a long run equilibrium.
3. (3) Explain whether the government should create an outcome in the monopolistically competitive market where average total cost in minimized (we discussed this as whether the government should “regulate” monopolistically competitive firms).
4. (4) Explain why the competitive market fails to maximize net benefit for society when there is pollution in a production process. Provide a description of two methods the government could use to achieve a better result for society.
5. (4) Explain why a typical private provision of public goods fails and how we can overcome these problems. Explain the general problem with a common resource and how we can overcome this problem.
Explain why a typical private provision of public goods fails and how we can overcome these problems. Explain the general problem with a common resource and how we can overcome this problem.
how whatever affects demand and supply equilibrium and disequilibrium for a sport or leisure product can be expected to influence what price an individual manager decides to charge consumers for that product and the quantities of it to supply
how large should government spending be allowed to get, in the best interests of the economy.i.e could you suggest a way of evaluating the best level of spending and taxation
explain how output, prices and interest rates are affected in the classical model of the economy when there is a rise in investment spending
explain the keynesian model of the economy and how the aggregate demand and suply curves are determ
hello,
i would like to ask that what is meant by safty demand for US dollar,, as we sometimes listen in news that dollar weekend due to reduced in safty demand,, so i dont understand this economic term
can u please answer this question
Regards
Asif
Plse ans the following question, mail me.
Fluctuations in the level of GDP around the trend rate of growth are caused by demand and supply side shocks, but doest it really explain the increase in productive potential of the economy?
Regards
I’m looking for some advice on the ‘best’ (well, quickest) way to calculate the real growth rate in consumer credit.
I’ve been given the following information
Gross unsecured credit balances have risen from £125 billion in 2000 to £233 billion as at end 2008. However, these figures have to be adjusted for:
• inflation
• real increases in wages and
• credit card balances paid off in full at the end of the month (these are not credit)
Would appreciate your advice on this
WHAT IS THE BEST COURSE TO LEARN IN ECONOMICS ? SECONDLY WHAT CAURSE INFLATION
Why does the federal reserve buy treasuries? Isn’t that just taking money from one pocket and putting it in another?
If the opportunity cost of producing a ton of yarn is 21,329 buttons in Louisiana and 16,307 buttons in Texas, then
I have a question on “what principal elements of capitalism production systems are typically subject to the ’state regulations’ and why?”
I don’t understand this question so clearly.
Moreover, the answer i got tends to be wrong.
multinational corporations are a source for international corruption.To ensure social justice,it would be advisable to sacrife global growth to preserve international integrty.critically analyse the statement considering issues of financial strenght and size of corporations in today`s burgeoning global scenairo
UK based retail company offering FMCG products would have to consider when entering a develop market
What is the pros and cons of decrese in value of inflation
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic. Explain why
THANK YOU FOR YOUR INSIGHT ON THIS QUESTION
HOW DOES THE MONEY MULIPLIER DIFFER WHEN CURRENCY HOLDINGS ARE ZERO. COMPARED TO WHEN CURRENCY HOLDINGS ARE GREATER THAN ZERO?
explain the concept that increase in money demand leads to an increase in interest rate?
How would I the price elasticity of demand if the mean price is $7.50 and the mean quantity is 20,000? I don’t even know where to begin. My text book does not offer a proper equation for a problem with missing numbers.
How the ”Real State” is showed while showing the GDP growth?
I can’t understand what this question is asking me =/
I’m very confused, so if someone could help me out, I’d be greatful.
Evaluate the extent to which environmental protection should be sacrifieced in order to have sustainable development.
What is the economic answer to why do fast food stores offer free refills on sodas?
Please would you give me some help… How would a stock market crash effect the output and price level in the short run as well as the unemployment rate??
Can you please show me how to derive the aggregate demand curve, assuming an endogenours money supply?
Muchly appreciated!
reasons why you would recommend the study of economics to a business
A firm has total cost TC =25+Q2.
a). Calculate output and economic profit if price is $15, 10.
b). This industry presently has 10 identical firms. Approximate the industry’s short run supply curve with a linear equation (P = mQ+b, find m and b).
c). If total demand is given by 2P= 100-Q, after entry and exit, how many firms will be left, what is the output of each firm remaining in the industry? What is the price?
Suppose Bob and Tom consume books and money left over (i.e. purchasing power on
other goods). Bob’s utility function is Ubob = √xbooks + xm while Tom’s utility function is Utom =
5√xbooks + xm. Bob is wealthy with an income of $50 while Tom is less wealthy with an income of $25.
(a) Derive a demand function for books for both Bob and Tom.
(b) Suppose Bob and Tom can either own zero books or one book. Derive the willingness to pay for
a book for both Bob and Tom. Construct the “industry” demand curve for books.
(c) If only one unit was for sale, which would get the unit and what can we say about prices and
consumer surplus?
(d) Who prefers books more strongly Bob or Tom? Who has higher consumer surplus? Does higher
willingness to pay imply stronger preferences in this example?
what is celling price and floor price
1-Explain the meaning of [a]Entrepreneurial spirit [3 mark] [b]Gazelle companies [2 mark]
1-Why may countries with significant immigrant populations have more entrepreneurial spirit. [4 marks] 2-discuss the risks and rewards of running a business.[7 marks]
efficient allocation of resources is achieved to greatest extent under-:
A) Monopoly
B) Perfect competition
C) Monopolistic copetition
D) Oligopoly
Is it possible the phenomenon to have
a relationship between GDP and house prices where
an increase of the mean GDP to lead to decreased house prices?
expectations for health economics subject? (ASAP)
what is the importance of economics to you as individual, and as in relation in to your course (accountancy).
Are books inferior goods or normal goods?
if you operate a business in a perfectly competitve market and the current market equilibrium price is $12 per unit: show on the diagram demand curve you face?
Using diagrams to illustrate answer explain how a reduction in taxation can affect the equilibrium in the IS – LM model.
sophie…
well, books are normal goods as they are universal and vast usage by people of all ages.
hi,
”prices are competitive and determined by the maket.”
How can i use a diagram to explain this?
also, for example,
it has been estimated that the income elasticity of demand for take-away food is +1.5,
what does this estimate mean?
What significance would this be to the take-away food shop owners?
Finially, What does ‘economies of scale mean’?
Can you think of an example of this which would benefit the take away business?
Thanks
Macroeconomics homework help?
1. Your study partner is confused by the upward-sloping shortrun aggregate supply curve and the vertical long-run aggregate supply curve. How would you explain why these slopes differ?
4. A fall in the value of the dollar against other currencies makes U.S. final goods and services cheaper to foreigners even though the U.S. aggregate price level stays the same. As a result,
foreigners demand more American aggregate output. Your study partner says that this represents a movement down the aggregate demand curve because foreigners are demanding more in response to a lower price. You, however, insist that this represents a rightward shift of the aggregate demand curve. Who is right? Explain.
10. Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank, if possible, your
most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. How would you rank them and why?
13. Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Illustrate with diagrams. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output?
a. There is a decrease in households’ wealth due to a decline in the stock market.
b. The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases.
I am having trouble with Elasticity of demand and the question I have is Explain why it is or is not possible to calculate the elasticity of demand for alcohol consumption for the state situation? If you can help me find somewhere that will help me understand this better I would appreciate it.
how company A’s investment might be likely to affect its profits in the short and long run.
Suppose that we had a situation where the interest elasticities of both money demand and investment were quite low. Using the IS-LM model, compare the effectiveness of monetary and fiscal policy in terms of raising and lowering real income. How do you interpret this situation?
why the balance of paiement of China is excedant?
What is the relationship between debt, development and economic growth?
With use of appropriate diagrams, analyse the likely impact of government policies (such as price
regulations or taxation) in the petrol retail industry for Australia
Using aggregate demand and supply analysis and making reference to the role of the multiplier evaluate the effectiveness of fiscal policy to achieve a higher rate of economic growth.
if in 2008, the price of raw materials is $10 but inreases to $12 in 2009, and producer price is 120 in 2008, but increases to 125 in 2009, what does it mean?
i need HELP HELP…pls help me answers the question…
1.using a graph of net exports (X-M) against disposable income, show the effect of the following: a)An increase in foreign disposable income b)An increase in US disposable income c) An increase in the US interest rate d)An increase in the value of the dollar againts foreign currencies. explain each of your answers.
what are the factors that leadin to an economic scale??
What AS and A levels do I have to have to study Economics at uni? I have to make AS choices this week !
Discuss what you think will happen to the supply, demand and price of the product in the short-term if the demand of the product increases and supply decrease or remain the same?
I like this site
13.) Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Illustrate with diagrams. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output?
a.) There is a decrease in households’ wealth due to a decline in the stock market.
b.) The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases.
Is the recession an urgent wake up call? Has it had any positive effect for the future and stopped any further catastrophe or was it the catastrophe itself?
Is the recession an urgent wake up call? Does it have any possible positive effects for the future? Has it stopped a future catastrophe or is it the worst case scenario?
debate about negative supply and negative demand if suppose occurred in an economy
Consider the market for pizza in a large city. Identify what happens to the equilibrium price, quantity, and total consumer expenditures after each of the following events listed below, assuming that pizza is a normal good and the price elasticity of demand for pizza is -1.20. Treat each event as independent of the others.
Event 1: The price of labor goes up.
Event 2: The number of pizza restaurants increases.
Event 3: Consumer income rises.
4.1. For Event 1, the equilibrium price is expected to _______, the equilibrium quantity is expected to ______, and total consumer expenditures on pizza are expected to ________.
A. Decrease; increase; increase
B. Increase; decrease; decrease
C. Increase; decrease; increase
D. Decrease; decrease; decrease
What happens to the efficient allocation between public and private goods as an economy becomes wealthier?
I have a few questions,
If u were using fiscal policy and were the gov. What actions and why-would u take in the event of inflation?
I am takin economics 110 at clark state in ohio! I donot understand what is being taught to me. can or will someone help me?
a man set up a school. The elasticity of demand is 0.5. you have decided at the board meeting that the school fees should be increased by 20%. What is the effect on total revenue? How does your answer change if the price elasticity is 2.75 or 1?
What is the average annual salary of a Greek civil servant versus that of a British, German, US civil servant? Also, how do their vacations days, pension, retirement age, and health care coverage packages compare?
What is real money gap ? please explain with example
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