Free Economics essays help

If you would like help or advice for an Economics essay or economic dissertation you are welcome to leave a question as a comment on this post.

I shall try to answer the economics question and / or point to other resources but please bear in mind.

  1. The replies will be guidance and not for duplication. Your essays should always be your own work.
  2. 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.
  3. I can't guarantee to always give full answers it also depends on my time schedule.
  4. The answers will not necessarily be complete. I know several of my essays on this site could be improved.
  5. Please Write the Questions clearly and with proper spelling. Some questions I have not answered because they were not clear what was meant.
  6. I will not answer on this blog, but the one here

I studied PPE at Oxford University and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.

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Perma Link | By: T Pettinger | Tuesday, April 10, 2007
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Anonymous Anonymous said...

hi i am a student taking my A levels this year. i wrote an essay and i hope if ure free u can perhaps look through it for me and give me some comments cos my econs teacher is really really bad. thanks alot!

1. Discuss the consequences for an economy of an increase in interest rates. (25marks)

Interest rate is the effective rate paid on borrowed money. Increasing interest rates is a contractionary monetary policy i.e. the government is aiming to decrease aggregate demand by decreasing consumption and investment, to keep inflation under control when the economy is overheated.

The effects of an increase in interest rates can be analyzed using two approaches, Keynes and Monetarist approach. Under the Monetarist approach, the demand for investment is interest inelastic and an increase in interest rates (from r1 to r2) will lead to a more than proportionate decrease (I1 to I2) in investments.


An increase in interest rates may also help reduce households’ consumption because if interest rates are too high, consumers may not want to borrow to spend as they would have to pay back even more. This is especially so in the case of durable goods such as automobiles. Also, an increase in interest rates will encourage savings due to the higher returns thereby reducing consumption as well.

As a result of the decrease in consumption and investments, there will be a decrease in the aggregate expenditure of the economy to the level of full employment (Yfe) thereby reducing inflation.


However, under the Keynes approach, the demand for investment is interest inelastic and an increase in interest rate (from r1 to r2) will be met with an unresponsive change in investment (I1 to I2) hence the effect of interest rates on investment is less certain. This is because the investments largely depend on the confidence of future markets as well. If confidence is high, firms will continue to invest even if interest rates are high. Firms might pass the higher costs to consumers thereby worsening inflation.


In addition increasing interest rates would not reduce consumption as effectively if consumption is dependent on disposable income rather than interest rates.

The increase in interest rate will only work if the inflation is one that is demand-pull inflation. Since increasing interest rates is followed by unemployment and a cost-push inflation is also followed by a recession, increasing interest rates will only worsen the recession and inflation as it further increases the costs of production, hence it is inappropriate for cost-push inflation.

An increase in interest rates can also affect the external balance of the economy. An increase in interest rates can attract more capital inflows to the country due to the higher returns. As such there might be an improvement in the capital accounts of the Balance of Payments.

In addition, increasing interest rates might not be effective when the degree of control of the Central Bank on commercial banks’ credit-creating ability is low (due to emergence of subsidiary agencies like finance companies) and when there are alternative sources of funds to finance projects.

Increasing interest rates to achieve low rates of inflation and to stabilise the economy only works if the inflation in demand-pull. The effects of interest rates also depend on each economy and can vary for different countries. To have a more certain impact on the economy, fiscal policy should be adopted with monetary policy.

May 5, 2007 6:24 AM  
Anonymous Anonymous said...

Hi, i will be doin my A levels in june and i was hoping you could help me with this question on labour market.

" Using marginal productivity theory, examine the view that 'wages are determined not by productivity alone but by the interaction of demand and supply of workers of various skills' "

May 23, 2007 9:01 AM  
Anonymous Anonymous said...

Hi, could you please help me with this question i found in one of edexcel's unit 6 papers. the question was:

"Examine the factors which might explain why 'strongly rising domestic demand has run ahead of overall economic growth'.

(the paper was june 2004)

May 23, 2007 9:12 AM  
Anonymous Anonymous said...

In your essay "Domestic Demand and Economic Growth" you said 'A fall in the savings rate theoretically leads to less investment'. Why is that? I thought that less savings would mean more money is being spent on investment?

May 27, 2007 2:26 PM  
Anonymous Anonymous said...

I am going to sit my labour markets exam soon but have come across a question which i am having diffculty with

Asses the likely impact of reomivng the 35- hour working time restriction on wage and unemplyment levels in france and germany.

For thi answer i did think about agruements such as reducing motivation therefore may leave the work force.

May be forced to work longer hours

Could increase accdients

and also could increase wages helping people out of relative poverty i think these are wrong please help.

Many thanks!

June 1, 2007 12:45 PM  
Anonymous andrew said...

examine the possible factors which might have lead to changes in the value of the pund sterling against the euro in recent years.(40)
A level edexcel june 2004.

June 2, 2007 1:58 PM  
Anonymous Anonymous said...

hi, i'll be doing my AL's soon, and i wanted to know some tips on writing good economic essays. i find it very hard to finish unit 6 within 1 hr and 45 mins, usually i spend about an hour on section A and then take another hour for section B.
Since you are an edexcel examiner, could you please tell me how many points u should write for say 6, 10 and 12 marks.
Also, is it ok to use abbreviations in our essays like AD, AS, int. and FDI? Will marks be cut?

thanks alot!

June 3, 2007 1:29 PM  
Anonymous Anonymous said...

Hello i was just going over my notes and was finding it diffcult to find out about the growth and stability pact can you please help as i do not no which bits are relevent and which are not

June 4, 2007 10:02 PM  
Anonymous Anonymous said...

IM HAVING DIFFCUITYY with these essays i justr don't no wot 2 do howw can i approach unit 6

June 4, 2007 11:26 PM  
Anonymous Anonymous said...

hey im having problems with this question;

in 200/01 the uks public expendirure was 37% of gdp this forcast to increase to over 42% of gdp by 07/08 examine the likely econmic implications apart from increased tatx of this trend

June 5, 2007 1:55 AM  
Anonymous Anonymous said...

hi, i'll be doing edexcel unit 5 and 6 very soon and i have some problems answering the following questions...
- what are the effects of net immigration?
- causes of globalization and their significance. (the problem i'm having with this question is the evaluation)
- reasons for pay deffirentials, especially among different age groups, and different ethnic groups.
- UK is experiencing both low inflation and low unemployment. to what extent do these data contradict with phillips curve analysis (40)
- when they ask about factors that lead to both low inflation and low unemployment, can we talk about many supply side policies as different points?


June 5, 2007 9:26 AM  
Anonymous Anonymous said...

hey the marginal productivity theroy has been a hot topic over the last 2 year but i have problems when startin off to explain this concept can you help

June 5, 2007 3:41 PM  
Anonymous Anonymous said...

Hello, can you please explain the concept of crowding out in the context of fiscal policy thank you

June 5, 2007 9:56 PM  
Anonymous Anonymous said...

hello, i am having problems with finding suitable revsion notes for the goldern rule can you please help. For edexcel unit 6 i think we need to know the concept and its effect?

June 5, 2007 9:57 PM  
Anonymous Anonymous said...

hello Mr P.

I one off your previous post you said that when explaning low uneploymentandinflationyou must consider supply and demand factors what are the demand factors

June 6, 2007 10:37 AM  
Anonymous Anonymous said...

heya u predicted questions for aqa how about edexcel unit 5 and 6.what are possible questions

Thank you in advance

June 6, 2007 2:12 PM  
Anonymous Anonymous said...

Hey i was just wondering if youcould help me on labour market. The reason for an increase in female workers(demand side reasons) i already have an increase in the demand for labour so the wage rate will increase thererfore a higher opportunity cost of not partcipating and also more flexabile working force what others that an be used as they usually ask for three factors

June 6, 2007 3:07 PM  
Anonymous Anonymous said...

hello when looking at reasons why there is a difference in wages in regions what reasons are there? thank you

June 6, 2007 3:14 PM  
Anonymous Anonymous said...

hello, i was wondering if you could point of what agrueents could be used for the advatages and disadvantages to employees, employers and trade unions would the fairness at work scheme create thank you

June 6, 2007 4:21 PM  
Anonymous Anonymous said...

hello i have a problem i do not have access to labour markets question papers from 03 and 02 can you please pass me on thequestions this would be hugelyy appricated thanks youu

June 6, 2007 11:11 PM  
Anonymous Anonymous said...

Heya when studying labour markets i came across 2questions i do need answering.When talking about policies toincxreaselabourarket flexability is the new deal and education andtranining considered the same point and how easy it is for the uk to abloish the maxium working week legislation as it is part of the social chapter what eveluation could i use

June 7, 2007 12:06 AM  
Anonymous Anonymous said...

hello I was wondering if you could present the case for part time workers which could be used in my labour markets exam. Thank you.

June 7, 2007 10:00 AM  
Anonymous Anonymous said...

Reasons why there is a difference in wage between part time and full time worker include;

Lower union density

Usually employed by the public sector

As they work less hours MRP will be lower

Are these correct?

Thank you for your help

June 7, 2007 12:23 PM  
Anonymous Anonymous said...

what causes shift in the lorenz curve? thankz

June 7, 2007 12:37 PM  
Anonymous Anonymous said...


June 7, 2007 12:45 PM  
Anonymous Anonymous said...

hi, could you please help me with the following:

- definition of a trading bloc (i'm not sure whether its a customs union or a free trade zone)

-how govt can tackle unequal opportunities in the labour market

-examine whether extention of NMW to 16-18 yr old's affect their participation in the labour market [10] (i know that it increases coz opportunity cost of studying has increased, but what's the second point?)

-in edexcel's unit 5 june 2003, there was one question asking how NMW is effective in tackling poverty while the other question asked if income distribution in the UK has become more equal. since passage is on NMW, for the second part do we have to talk about NMW's effect on income distribution - but isn;t that the same as its effect on relative poverty?, as in the first question

-when talking about monopsony, do we have to explain why MC curve is higher than AC curve? - coz it takes alot of time!!

thanks so much!

June 7, 2007 2:00 PM  
Anonymous Anonymous said...

hello why do we use relative poverty as a measure rather than absoulte?

June 7, 2007 2:26 PM  
Anonymous Anonymous said...

hello i was just wondering what you thought the different question for unit 5 labour markets edexcel may be this year?

June 7, 2007 2:50 PM  
Anonymous Anonymous said...

Hey what is the case for and against regressive taxation

June 7, 2007 3:27 PM  
Anonymous Anonymous said...

heya i was just going over the june 2006 paper for labour markets and you are asked to evaluate twoother less costly way in which gov could increase workplace flexbility - the ways mentioned in the text are reducing working ours and flexabile shift. I am aware reducing the min wage and increasing children provisions are ways to increase flexability but these are costly so wot do they mean

June 7, 2007 5:54 PM  
Anonymous Anonymous said...

use MRP theroy wot are the factors that will supply of workers

June 7, 2007 5:59 PM  
Anonymous Anonymous said...

Hello apart from taxes and benefits what other measures can be used to tackle poverty. And what type of question do u predict to appear in unit 5 labour markets. Thanks for your help.

June 7, 2007 11:06 PM  
Anonymous Anonymous said...

Evaluate how EU labour market policies might affect wage differentials between men
and women in the UK.

June 7, 2007 11:45 PM  
Anonymous Anonymous said...

what advatanges and disadvantages does membership of the EU bring to the UK? and what would happen if we left the EU (unit 6 reponse required)

June 8, 2007 6:24 PM  
Anonymous Anonymous said...


June 8, 2007 7:53 PM  
Anonymous Anonymous said...

hi there,I'm doin my A levels this year.I found your page through google.I hope you could tell me how to ANSWER this question:EXPLAIN THE REMOVAL FACT OF AN INDIRECT TAX UPON THE MARKET FOR A PRODUCT.

June 10, 2007 3:37 AM  
Anonymous Anonymous said...

Does Aid help economic and social development? 20 marks / unit 5b A2.

June 10, 2007 6:16 PM  
Anonymous Anonymous said...


June 10, 2007 8:46 PM  
Anonymous Anonymous said...

Heya just wondering if you could help me with the advantanges and disadvantages of a monospony in a labour market

June 11, 2007 11:40 AM  
Anonymous Anonymous said...


June 12, 2007 11:57 AM  
Anonymous Anonymous said...

Heya can you draw me the diagram for the nmw and monospony power. Im conufsed with Nmw is below the compeititvelevel but above monospony where how do i find the quanitiy demanded is it when D=AC or when the wae rate and demand curve meet

June 12, 2007 12:22 PM  
Anonymous Anonymous said...

Dear Mr P.

Can you explain the case for regional variancation in the NMW and what other types of questions should i prepare for

June 12, 2007 12:58 PM  
Anonymous Anonymous said...


June 12, 2007 3:46 PM  
Anonymous Anonymous said...

helpp please assesstheeffects on income distribtuion that are likely to result fromthe sad decline of the UK pensions (2006 labour markets papaer?

June 12, 2007 4:15 PM  
Anonymous Anonymous said...


June 12, 2007 8:50 PM  
Anonymous Anonymous said...

What is the importance of trade between developed economies, relative to world trade as a whole

June 15, 2007 10:15 AM  
Anonymous Anonymous said...

factors affecting the international competetiveness and government policies to enchance the UK relative position. and how successive uk gov measures have been

June 15, 2007 10:16 AM  
Anonymous Anonymous said...


June 15, 2007 11:05 AM  
Anonymous Anonymous said...

Can you please provide me with a checklist for unit 6 edexcel so i can ensure that i have not missed out any topics because im confused on what i need to know as the exa paper illstrate more knowledge is required than what ison the spec

Many thankz

June 15, 2007 11:29 AM  
Anonymous Anonymous said...


June 15, 2007 9:53 PM  
Anonymous Anonymous said...

hello what are the advtanges and disadvantages of the WTO formally the GATT

June 16, 2007 10:34 AM  
Anonymous Anonymous said...

can you please provide me with advantages and disadvtanges of quotas as a form of protectionism and VERS

June 16, 2007 12:48 PM  
Anonymous Anonymous said...

discuss whether the inflation target should be higher than 2.5%

June 17, 2007 10:40 PM  
Anonymous Anonymous said...


June 18, 2007 2:56 PM  
Anonymous Anonymous said...

role of the imf and definition

June 19, 2007 1:15 AM  
Anonymous Anonymous said...

this is not about economics since i just finished the econ final unit yesterday - yeah! :)
but i just want to thank you for all your help - i really appreciate it!
oh and i wanted to ask you a question thats been bugging me for days. in econ unit 5 i cant remember ticking the box saying which question i did, but i clearly wrote the question number before i started anwering the questions. so i just want to know if i didn;t tick the box, will my answer script not be marked, or would marks be cut?

June 20, 2007 4:47 AM  
Anonymous Anonymous said...

I'm thinking of investigating why uk inflation has risen in recent months. Obviously there are many reasons but could you highlight a few? or what you think is most important? Also, I am in my AS year and I am applying to study PPE at Oxford next year, which I noticed you studied. Do you have any useful advice for preparation for the interview? Thanks.

June 25, 2007 12:34 PM  
Anonymous Anonymous said...

hi i am a newly recruited research associate in an academic institution. As a part of my job, i am presently doing a case study related to china.

my question is somewhat related to a previous question.

it is reported in the WSJ that some economists felt "6% lending rate in china is too low, for an economy growing at 14% nominally"

please explain what is the relanvance of the level of interest rate in an economy growing at a high rate? should the interest rate be less than the growth rate? or should it be more than growth rate or should be similar?

July 11, 2007 5:55 AM  
Anonymous Anonymous said...

Hello There. I read your Economics Q&A blog and quite impressed with the quality of details you have provided to previous question posers. I have six (6) essay-based comprehension US-based economics homework and exercise related questions. I am requesting a reasonably detailed typed-up written response for all the six questions. The answers provided should be complete stating all the assumptions upon which the analysis is based. The quality of the responses provided should be at a graduate (master's degree) college-level depicting verbiage the reflects interpertations, formulas, graphs, summary, references, etc. If you are interested and willing to help me discreetly, please contact me immediately at [email protected] I will appreciate that very much!!

August 21, 2007 3:22 PM  
Anonymous Anonymous said...

Hi,I am having problems with this que:EXPLAIN HOW INFLATION AFFECTS THE FUNCTIONS OF MONEY. Also can you please explain the difference between elastic,inelastic and fixed supply.Thank you

October 20, 2007 2:07 PM  
Anonymous Anonymous said...

hi i was wondering if you could help me with this essay question please.

"Merger activity represents a major force for structural change in competitive markets. Examine the principal objectives underlying such strategic developments and consider the degree of success enjoyed by firms in pursuit of those objectives."

April 1, 2008 8:26 PM  
Blogger Tejvan Pettinger said...




Tejvan R.Pettinger

April 2, 2008 9:16 AM  

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