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 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.
- I will answer as a new post. Check home page of blog for new post. With question and answers
- If you leave your email in the comments, I can try and let you know (email will not be published)
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 
The first Readers Questions has had 100 comments.
116 comments ↓
[...] Feel free to ask a question on the Housing Market [...]
If monopoly is always bad,why do firms seek to become monopolists and why does government tolerate monopoly?
If monopoly is always bad, why do firms seek to become monopolists and why does government tolerate monopoly ?
Thanks !
A. The standard criticisms of the neo-classical theory of firms?
B. Assess the value, if any of these criticisms, and then attempt estimate the vale of the neo-classical theory, if any still remains.
Hi,
I’m doing my A level coursework on the economic policies of the Margaret Thatcher governments and what happened from them. The only problem is, I don’t really know where to look for information about it and statistics. Please could you tell me what the results were of each policy, like the rise in VAT, poll tax, privatisation etc.
Thanks
Andy
Which of the following is a vald explantion for real wage growth?
1. the rising cost of capital accumulation
2. a contraction of employmeny in service industries
3. an increase in the quantity of labor
4. an increase in the rate of productiivity growth
Interest rates are determined by the markets and not by the Bank of England-wheres the truth?
Are monoplies always bad?
what are the different ways that the uk can measure its
competitive position in international trade?
Thankyou
my syllabus asks me to “Make an appraisal of the competitiveness of British industry in both home and overseas markets” what will i be expected to know in this case?
According to my syllabus i have to have to be able to Evaluate the role and the benifits and disadvantages of capital inflows from MNC’s in an EU context.
Could you give me a hand?
thankyou
explain how membership of the WTO constrains the use of protectionist policies by countries particularly in times of global recession and why
thanks alot
due to international economic crisis,how can unemployment in a developing economy that depends on revenues from oil be solved
due to international economic crisis,how can unemployment in a developing economy that depends on revenues from oil be solved through the use of fiscal policy, cud monetary policy be used as well
Hi there,
Thanks so much for your help with captial flows it was very helpful. Would you mind giving me a hand with this question in industrial economics:
What are the problems with the assumption of Profit Maximising?
can price discrimination be benefit to consumers?
if all firms in a monopolistic cometitive industry were to merge would that firm produce as many differnt brands or just one brand
when a war brokes out in middle east,the price of petrol rises,and the price used of used ford falcon falls why?
i want to know answer
helloz
my question is
how we can reduce the unemployment (with implication ) in short run and long run
and try to give some lively examples except of uk
and one more thing can u suggest me 4 or 5 more websites related to economics
thanks a lot
hellozzzzz
thanks a lot u had help me a lot
1 more thing i wana to ask that
CRITICALLY DISCUSS THE POSSIBLE WAYS (including their implications and limitations) to decrease the rate of unemployment in SHORT RUN AND LONG RUN
THANKS
hellozzzz
in the above one plzzz try to describe the fiscal and monetary policies also as short and long run and thn critically discuss the possible wayz to decrease the rate of uemployment
an orange juice sells at $3
when sugar price rise,orange juice sells at $3.2
but why when sugar price drop,orange juice still $3.2 ?
a house sells at $400k,
when steel price n cement rise,house sells at $450k
what will happen if steel n cement drop,
house price drop or remain the same at $450k?
how can this be explained in economics?
when recession,people tend to save money in bank,because interest rise.
the impact is..?(paradox of thrive),if the fiscal policy do not allow interest to rise and encourage people to spend,and govern collect more tax,which policy is beter?
why china stock bubble still havent come to end?
why yuan still havent drop?
why US stock still havent crash due to housing issue?
those who short selling is losing big money.
what is actually happening?
what are the disadvantages of international protectionism on developing countries
can u tell me critically discuss the possible ways including their implications and limitations to decrease the rate of unemployment in short run and long run including fiscal and monetary policies
This is not the housing market, but…
Do you know what happens if the stock market decreases? (e.g. due to prive equity buyouts). Does it affect the economy overall? Thanks for your help!
Inflation makes exports less competitive because prices rise, but also, currency devaluation makes exports more competative.
Since devaluation of the currency and inflation are kind of conincidental (because as the currency becomes cheaper, it increases demand and also price), what exactly happens to the competitiveness of exports?
can you please help list out the topics for unit 5 economics?what are the important ones to study?
Hi,
I have question to ask.Its about the monoply power. The dominance of a monoply power in the market worries the government and groups that promote consumers interest.However, this companies with monopoly power have argued that they bring benefits to the market.So,what is the benefits from monopoly power brings to the market?
Thank You.
Evaluate the strength of Malaysia to attract foreign investment based on the performance of Malaysia’s economic variables.
critically tell me how fiscal policy can decrease unemployment by increasing AD ??like how it afeects the GDP and all
thanks
If long term Interest rates in the US do not fall, how will this impact the US economy?
apart from consumer confidence, identify two general economic conditions that can affect the housing market and explain their effects. (8 marks)
During 1995 – 1997 in the UK, mortgage equity withdrawal was negative. What does a negative mew value show? and why was there a negative value during this period in the UK?
Evaluate the significance of the factors which have contributed to globalisation. You may use diagrams if you wish.
help please
Assess the effectiveness of government policies to increase labour market flexibility in the UK.
Identify and explain economic variables that may be affected positively by the economic slowdown.
How and why are ethical concerns and corporate social responsibility impacting businesses in a country of your chioce?
what is the marginal cost measured at a particular level of output defined as?
To what extent do you agree that “the greatest risk to the economy is not inflation, but over-investment
Are government purchases neutral (a.k.a. do they have no impact on real values?)
Identify and explain economic variables that may be affected negatively by the economic slowdown.
PLS HELP!!!!!!!!
Why government, rather than private industry, is required for an effective mosquito eradication program?
Hello, I found your column an interesting read how ever with some concern to my myself.
I’m currently in a contract terms with buying a property in Cyprus. The property is valued at 153,774Euros and is due to complete by the 30th June 2008.
In today rates the current price in sterling would around £123,500 to buy, however with the pound remaining to fall how long do you forecast it to continue.
Is it likely to pick up in time for me make some saving on the current exchange rate and reducing my outlay.
Any advise would be greatly appreciated.
Hi there,
Please could you explain and evaluate what the main conflicts between policy objectives are and why.
Thanks so much
Are tax cuts or lowered interest rates more likely to increase consumer spending? Are either of them more likely to affect long or short term spending? I’m tending to think lower interest rates, because it encourages borrowing?
To what extent can a government influence the rate of growth of a developing
country?
Could u pls explain to me volume of private investment depends on the rate of the interest and marginal efficiency of capital
Hi, Please could you explain this question…
Contrast the likely effects of monetary policy decisions on the price of housing and shares.
Thank you very much.
hi, i need help with my economics essay. one of the questions ask..
The Aussie dollar has appreciated strongly against the USD in recent times. Discuss the consequences of this rapid appreciation for Australia’s Balance of Payments.
Hi, could you please help me with these questions
Evaluate three labour market factors which might explain why levels of employment have risen despite increases in the national minimum wage. (15)
Assess the case for regional variations in the minimum wage. (15)
Examine whether an extension of the national minimum wage to 16-18 year olds
would affect their participation in the labour market. (10)
Thank you
How does the UK’seconomy compare to other European countries such as France in terms of the UK’s seeming reliance on House Prices and consumer confidence to drive the economy. Is there a better way and why don’t we use it.
what is the solution for stagflation?
Hey, thanks alot for your previous reply, was very helpful!
Evaluate the advantages and disadvantages of both a floaing exchange rate and a fixed exchange rate. Is there a “better” one to have?
Thankyou
Hello,
i am studying AS level economics and I have a homework which i’m stuck on. I was wondering what are the pros and cons of the government intervening in market failures such as those resulting from the immobility of labour, negative externalities and greater income inequality, following the closure of factories.
Any ideas?!
Thanks!
The Bank of England has released £15bn into the economy. That increase in the money supply will surely cause inflation? So interest rates having fallen will be raised, worsening the housing market and making the credit crunch even worse, not better….surely?
Does the Rahn Curve support the empirical evidence? If not, why not?
essay on how to prove that there is a relationship between the level of tax and GDP growth
sorry, on my previous post about the Rahn Curve, i wrote tax rate- it is supposed to be government spending. Basically does the Rahn curve support the empirical evidence?
a. (i) On 1 March, AUD1 = GBP 0.42. On 1 July, AUD1 = GBP 0.45.
Your company exports native flowers to British florists. You signed a contract on March 1 to sell 10
tonnes of flowers at AUD 385 per tonne, to be delivered on July 1. Explain how the exchange rate
movement between the two dates impacts on the Australian seller.
Part A ii)
On 1 July, AUD1 = NZD 1.10. On 1 August, AUD1 = NZD 1.15.
On 1 July, your aunt in New Zealand booked the accommodation your families will stay in when you have a family reunion in Melbourne in August. She expects this to cost NZD 5400 when she pays the bill on August 1. You agreed to cover the costs she might incur if any exchange rate fluctuations took place between these dates. Will you have to help out? How much will you have to pay?
b. Financial reporters suggested that fluctuating interest rates were responsible for the AUD/GBP
fluctuation described above, and that the AUD/NZD change was due to lower inflation in Australia.
Explain how the change in exchange rates could have been caused by those events.
plus it requires graphs, and i am totally confused.
thnanks.
what is the difference between consumer led recovery and investment led recovery
what is the relationship between inflation & economic growth & how they affect each other
Hi
I have an essay thats due soon and its about the size of the goverment. Is large goverment bad for growth? to what extent does emperical evidence support this assertion?
Please help me answer this question by giving me guidelines to follow.
When Mr.Ahmad’s income was Rs.10, 000, he bought 20 liters of milk per
month, when his income increased to Rs.2, 000; he purchased 24 liters of
milk per month. Assuming to change in the price of milk, what is Mr. Ahmad’s
income elasticity of demand for milk?
Please Give some comments on my given below Question…….EXPERTS!
What are the major determinants of price elasticity of demand? Use
those determinants and your own reasoning in judging whether demand for
each of the following products is elastic or inelastic.
a. Bottled water;
b. Toothpaste;
c. Crest toothpaste;
d. Ketchup;
e. Diamond bracelets;
f. Microsoft Windows operating system.
THAN YOU VERY MUCH
explain what effect will each of the following have on the
demand for product B.
a. Product B becomes more fashionable.
b. The price of substitute product C falls.
c. Income declines and product B becomes an inferior good.
d. Consumers anticipate the price of B will be lower in the near future.
e. The price of complementary product D falls.
What are the implications of a growing fiscal deficit? (60 marks)
Especially need a strong evaluation points and some ideas for this essay.
Can you help please
Hi there,
please can you assist me with this…
a. The remedies supply-side economists put forward to reduce unemployment
b. Evidence of governments who have used supply-side measures to reduce unemployment and a discussion of what effects those measures have had.
c. Explain whether the government should tackle the causes or symptoms of unemployment
and lastly…
d. xplain the benefits of increasing the rate of unemployment benefit for
1.the unemployed
2. soceity
Identify andy costs that may result from such a policy.
I sure hope that u can help me.
Thank you very much
What are the implications of a growing fiscal deficit? (60 marks)
need some ideas and evaluation points
thanks
factors that close the employment gap between different groups of workers. really appreciate it
When Ahmad’s income was Rs.10, 000, he bought 20 liters of milk per month, when his income increased to Rs.2, 000; he purchased 24 liters of milk per month. Assuming to change in the price of milk, what is Ahmad’s income elasticity of demand for milk?
my Q is
“the only viable solution to the problem of global warming is an international agreement that sets a ceiling to the world’s production of carbon emissions, by allocating a quota to each contry. The sum of the quotas being set equal to the agreed global maximum. countries should then be permitted to buy and sell their quotas”
where do i start!?
The economic crisis in the Far East has severely affected producers and consumers in that region.The fall in demand for goods in Asia is likely to have repercussions for goods market in Europe.Using the concept of “demand”,”supply” and “elasticity” examine what effects the crisis may have on British consumers and producers of consumer goods in Europe.
Hi,
iam preparing for my exams and iam not able to understand this question please could you explain me about it…………
“Microeconomics involves the study of models. These are central elements of theories”. Discuss the statement by providing examples of such models.
Please help,
Looking forward for your post
Prachi
hey ,
could you please help with the markets chapter , and give me detailed explanation about them and the comparisons with diagrams ?
thank you.
oh and could you also explain to me the method of the multiplier and accelerator?
[...] Readers Questions II [...]
hi first of all thanks alot for your site and essays they are a great help. GOD BLESS YOU! i have a question
Assess the impact on market contestability of increased use of the internet
How does a cut in interest rates and an increase in foreing currency reserves result in a depreciation in the pound?
thanks again
can you just write a paragraph on anything you like which is an example of your best evaluation (L4 AS standard) please. I would like to see your structure and technique and subsequently compare it to mine.
Alternatively could you list ways to evaluate?
Economics
The question is In the case with Acme Motors, what are the production gains to the entire company from the facility in Nuevo Laredo, Tamaulipas specializing in Autoturbo Quattro engines
explain why perfect competion is generally considered as economically efficient
assess the extent to which developments in information technology, such as the internet are making markets more competitive
does market domination means sovereignty???? For example if a market is dominated by producers then does it show that there is a producer sovereignty????
What is the current state of economy?. Are interest rate about to rise o fall?. How many people are unemployed in central London?
What should the government do to ’solve’ the problems in the economy at the moment?
Do you have mark schemes of June 2006 Edexcel Economics Unit 6?
Questions:
1) ‘Trading blocs are the most significant factor contributing to globalisation’ To what extent do you agree with this view?
2) Evaluate the likely economic effects of a decision by the UK to withdraw from the European Union.
Thanks.
U = bx²
U being the utility function, b being the number of books and x being the other things that he could buy
John would like to maximise his utility function. Meanwhile, he receives $ 60 a week and one book costs $1. Also, his grandparents will give him 50 cents for every dollar he spents on a book.
How many books should John buy to maximise his utility function?
What are the microeconomic effects of a fall in houseprices?
What are the conditions for general equilibrium existence?
Explain the differences between perfect competition and imperfect competition in relation to market features, firm behaviour, market outcomes and social desirability?
How do opportunities for two countries to trade enhance welfare of both countries? Does it actually improve living standards? If so why the opposition to lower tariffs?
how does the relation between rupee and dollar cause a change in export or import
hello goodday to you my question is ,,, what is opportune cost
i want to know for all the reasons american supermacy is boon for the world?
i m against this…… i want sum views regarding recession how it is affecting the other country’s economy…………..
hello…. i want to know what are the social issues stopping India from being a superpower?
heyyyy i want to know about american supermacy…. is american supermacy a boon for the world….. i m against the motion…. how recession is affecting other country’s economy…..?
Heyyy,
actually, I would like to know if the current uk’s recession is caused whether economic policies which have been practised, or the UK has been affected from outside the country?
Mnay thanks in advanced….
Hello, can you please help me with this question?
How doese an increase in imports cause inflation in the economy?
1 . If we use AD analysis, it is impossible to answer. As rising imports causes a fall in AD, making a fall in price level. In the case the economy is operating near full capacity, then a fall in AD will reduce inflationary pressure, So it is beneficial.
2 . If we use exchange rate analysis . So can we answer as following?
As M rises, for example due to an increase in demand for US goods and services, then the demand for US $ is rising, making a dpreciation in the value of £ agianst $ .
A depreciation cuases an increase in Ms’ prices. Thus, cost push inflation occurs.
A depreciation also makes Xs cheaper, hence X will increase, leading to an increase in AD and then demand full inflation.
So i think the inflation effect of rising Ms is in the long run , in the future.
Iam really confused.
Iam looking forward to your reply. Thank you so much
Hi,Just wondered if you could help me please. Im doing an economics essay for a course at uni. The title is, what are the economic disadvantages and advantages for both of London and Great Britain of the Olympic Games being scheduled in the country in 2012.
I am struggling a lot on this work, so could you give me some ideas and information on what i should put in the essay. Its been a while since i have been in college and i have never studied economics before, but i need to do well on this essay.
I hope you can help me with this, I look forward to you reply.
Thank-You
Don’t u think that in this recession period students should make their carrier towards NGO sector ?
If u think yes then suggest me some bst NGO’S ?
Hello,
I am curious to know how level of imports affect the unemployment in developing countries. Based on the data on one of the Asian countries, I found that imports indeed cause more uemployment, but still want to know the economic intution behind it.
Thanks,
I have two questions…..im have trouble getting the answers
1. The aveage person in Bigland saves five percent of his or her income. What is the marginal propensity to consume?
2. In the U.S., which term from the equation is the biggest?
(Y=C+I+G+X-M)
Thanks, Kevin
Dear sir,
it is commonly known that a recession has only one benefit, that is curing inflation of goods and services. But in the UK there has been no fall in the prices of goods and services.does it mean we are not affected by the recession?
From my studies in economics i have always known that when there is a recession, there is a high tendency for people to borrow at a low interest rate since there is a fall in the mpc due to high unemployment right? Also knowing fully well that investment forms a key component as far as GDP is concern, why can the high authorities not encourage people to borrow and invest so as to cub this problem of recession to an extend since it has been clearly stated according to my research that the problem of recession could easily be solved by investing?
let me have a pause here and will have more questions after u answer this. my email address is kamenisorel@yahoo.co.uk
Hello,
I have an Economics As level exam on the 5th of June 2009 and I wanted to know how to answer data response questions because i always seem to lose marks there. Please find time out of your busy schedule to help me out. Thank you
whether the elasticity of supply of manufactured goods is likely to be greater than the
elasticity of supply of agricultural goods?
Hi, i’m currently doing an assignment which is due in a few days time. but i’ve flipped through my textbooks, lecture books, sloman’s books and all other books even on the internet for hours but i still have no idea as to how i should approach the question. this essay assignment contributes greatly to my overall year percentage so help find time to help me asap!!! i will thank you greatly.
question: to what extent do you agree that large firms are preferred to smaller ones?
is it possible to email me your response?? thanks alot
Should economics be considered a science? Why
My assignment is due in a couple of weeks time.This is mini essay question ” Should economics be considered a science?Why? I would be very greatfull if you could give me some tips on how to approach this question.
Thanks in advance.
“economics is the science which studies behaviour as relationship between ends and scarce means which have alternative uses”according to professor Robbins justify this statement
hi,
i have just a small question by which i get confused all the time….
Q 1.
Why Recession has not affected the Indian Economy?
and what are the reasons for that?
please mail me the answer as soon as possible please…
how can an economist help in the development of the country?
When there are fluctuations in the demand for housing, suggest a strategy for construction firms to minimize the negative impact. Explain your answer.
1.can u distinguish between transfer earnings and economic rent?
2. Why it is argued that taxes should be imposed on economic rent?
You are the CEO of Comchip, a firm that sells specialized computers. Each of the firm’s computers contain a unique chip that is produced at Comchip’s west coast plant at a cost of . Once produced, the chips are shipped exclusively to the firm’s east coast plant. There, the computers are assembled, boxed, and shipped to the market at a cost of . An economic consultant recently estimated the demand for Comchip’s computers and found it to be P= 5,000 – Q.
a. Determine Comchip’s optimal output and price for computers. [6 marks]
b. Explain how Compchip can induce plant managers to produce the required number of chips and computers. [4 marks]
(Note: W = west coast plant; E = east coast plant; QC = output of West Coast plant; and Q = output of East Coast plant.)
sorry i left out the equations
You are the CEO of Comchip, a firm that sells specialized computers. Each of the firm’s computers contain a unique chip that is produced at Comchip’s west coast plant at a cost of Cw(Qc)=Qc^2 Once produced, the chips are shipped exclusively to the firm’s east coast plant. There, the computers are assembled, boxed, and shipped to the market at a cost of Ce(Q)= 200Q An economic consultant recently estimated the demand for Comchip’s computers and found it to be P= 5,000 – Q.
a. Determine Comchip’s optimal output and price for computers. [6 marks]
b. Explain how Compchip can induce plant managers to produce the required number of chips and computers. [4 marks]
(Note: W = west coast plant; E = east coast plant; QC = output of West Coast plant; and Q = output of East Coast plant.)
discuss how likely is the private cost and social cost of production identicle?
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