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 specialty is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
- I can’t guarantee to always give full answers it also depends on my time schedule.
- 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 
229 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 :-P) 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?
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