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
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Hi everyone, I know that the terms of trade are is the price of exports relative to the price of imports.
But how would I determine the minimum terms of trade in the following scenario:
The United States (US) produces
– 6 IPods (numbers per man hour)
– 4 Leather case (numbers per man hour)
Australia (AUS) produces
– 1 IPod (numbers per man hour)
– 2 Leather case (numbers per man hour)
Each country has 100 labour hours at disposal
[B]Question: What are the minimum terms of trade that each country would be willing to accept?[/B]
Any help would be appreciated!
I think Aus would accept [1:2]
What have been the effects of the Beijing olympics?
just wanted to know if anyone knew the answer to simons question #91
hey,
im a really slow and stupid person and this might seem like a stupid question but…
What is Australia’s target growth rate? (2008/09)
What is the difference between a recession and deflation,in respect to the present economic situation?
I have come across an article detailing about the factors contributing to the East Asian countries’ high savings rate and US’ low savings rate. It says in the article that East Asian countries should decrease their savings rate and vice versa for USA. However they did not mention about the negative impact of high savings rate (in my opinion high savings is good, because we all know it leads to more investment, hence higher economic growth). Could you please explain the reason behind that? THANK YOU
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
Is the US bailouts fail?
Hello,
Is there any possibility for North America to form an international union like EU? Thanks.
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)?
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?
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?
Edna is only interested in broodmare mix (B) and gumnuts (G). Her preferences are described by the utility function u(B, G) = 3B + 2G, where broodmare mix and gumnuts are measured in bags.
(a) Find Edna’s marginal rate of substitution between broodmare mix and gumnuts.
(b) Are her preferences homothetic? Explain briefly.
(c) The monthly budget for broodmare mix and gumnuts is $100. Broodmare mix costs $25 a bag and gumnuts cost $20 a bag. Find the optimal monthly amounts of broodmare mix and gumnuts to satisfy Edna’s desires.
(d) How will Edna’s consumption of broodmare mix and gumnuts change if the price of broodmare mix rises to $40 a bag? Explain with reference to part (c).
(e) Suppose the prices of broodmare mix and gumnuts are as in part (c). Find the equation of Edna’s income-consumption curve. Illustrate the income-consumption curve in a diagram.
*please help me solve these 5 questions! im struggling.
Meg’s preferences over consumption in years 1 and 2 are given by her intertemporal utility function,
U(C1, C2) = min[2C1, 3C2]
where C1 and C2 are her consumption levels of the composite commodity in the respective years. Lizzie receives an income of $30,000 in year 1 and $50,000 in year 2. The price of the consumption good is $1 in each year and the interest rate for borrowing or lending is 25 percent.
(a) Draw a diagram showing Meg’s intertemporal preferences.
(b) Write down Meg’s intertemporal budget constraint.
(c) Draw a diagram showing the budget constraint, Meg’s initial endowment and her optimal consumption in each of the two years.
(d) Find the optimal consumption quantities and de
termine how much Meg will borrow or lend in year 1.
(e) How would Meg’s consumption choices be affected by a decline in the interest rate? Explain briefly with respect to your diagram in (c).
*any help u can provide with any of these questions would be a massive help! thanks!
An advantage of publi works over transfer pameets as a means of reducing unemployment? an advantage of transfer payment over public works as a means of reducing unemployment?