You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions.
I will post the answer on this blog, for everyone to benefit from.
I shall try to answer the economics question and / or point to other resources but please bear in mind.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
- I can’t guarantee to always give full answers it also depends on my time schedule.
- I will answer as a new post. Check home page of blog for new post. With question and answers
- Generally, I don’t answer questions, which involve mathematical calculations, they tend to be doing someone’s homework. however, I may give examples, of calculations, if I think it helps explain economics principles.
I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.
Related
- The first Readers Questions has had over 150 comments.
- Readers Questions II
- Readers Questions III
If I answer your question, and you find it helpful, a donation is appreciated here for details on donating $2.
About The Author
Hi there any advice please …. without the support of a teacher or access to any markschemes how can I be sure that my essays cover all the points needed to get the marks. 60 points is a lot to lose out on if I misinterpret the question. Is there a set format the examiner wants the essays to be in?
Giffen goods.
Two prostitutes.
One cheap.
One expensive.
The cheap one raises his/her prices.
You still buy but cannot now afford the expensive one so easily. You reduce consumption of the expensive one and, to compensate, have more of the cheaper one.
Seems like a Giffen good – what a fantastic example for the exams!
Or not….there seems to be quite a lot about this on the web…
OK let’s take margarine and butter.
You buy both (unable to afford ONLY butter)
Margarine rises in price.
You still buy but reduce consumption of butter.
So, to compensate, you buy more margarine.
Simple!
There seem to be many examples of Giffen goods – and yet textbooks say they are rare.
Or have I got it all wrong?
Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $4 per hour.
a) What effect does this employer mandate have on the demand of labor? (In answering this and the following questions, be quantitative when you can.)
b) If employers place a value on this benefit exactly equal to its cost, what effect does this employer mandate have on the supply of labor?
c) If the wage is free to balance supply and demand, how does this law affect the wage and the level of employment? Are employers better or worse off? Are employees better or worse off?
d) Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, how does the employer mandate affect the wage, the level of employment and the level of unemployment? e) Now suppose that workers do not value the mandated benefit at all. How does this alternative assumption change your answers to parts (b) and (c)?
Hello,
Is there any possibility for North America to form an international union like EU? Thanks.
Is the US bailouts fail?
I have been trying to figure out the breakdown of current account balance (components that make up CAB) for last few days. In the same article i mentioned earlier in the previous post, it is shown that Savings = domestic saving + current account surplus (trade balance). To make it shorter S = domestic saving + CAB
However, I was taught that Current account balance = (Saving – Investment) + (Tax revenue – Government spending)
To make it shorter CAB = (S-I) private saving + (T-G) public saving
Because of the latter equation, the very first equation does not make any sense to me. Could you please help clarify it? THANKS A LOT