Ask Economics Question

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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.

  1. The replies will be guidance and not for duplication. Your essays should always be your own work.
  2. 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.
  3. I can’t guarantee to always give answers it also depends on my time schedule.
  4. The aim is not to do people’s homework for them, but, help in the understanding of economic concepts.
  5. The answers will not necessarily be complete. I know several of my essays on this site could be improved.
  6. Please Write the Questions clearly and with proper spelling. Some questions I have not answered because they were not clear what was meant.
  7. 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 🙂

579 thoughts on “Ask Economics Question”

  1. using the data and your economic knowledge assess the impact on the UK economy of a recovery in the EU as a whole

  3. This is about price-searching firms and two-part pricing to advise the company below.? this is about price-searching firms and two-part pricing to advise the company below. Please if you can use calculus or any other method, Thank you very much, this is a 10 points c question, Thank you please Draw diagram if is appropriate This is about price-searching firms and two-part pricing to advise the company below. A company has a bar and is trying to decide on the cover charge (if any) and price for each drink. It has done a modest regression study in which it asked customers to classify themselves as light drinkers or heavy drinkers and to indicate the number of drinks they would typically consume during the evening. The estimate from the regression study is that a change in the price equal to $1 per drink causes light drinkers to change their consumption on average by 0.5 drinks per night. However, a change in price of $1 causes heavy drinkers to change their consumption on average by 1.0 drink per night. For both groups a typical consumer will not consume anything once the price reaches $7 per drink. (They may instead go to another bar or not go to a bar at all.) Draw a demand curve for a typical light drinker and for a typical heavy drinker on the same diagram. Explain your diagram. If 300 people visit the bar on a typical evening, with 200 people being light drinkers and 100 people being heavy drinkers, draw an overall demand curve for all of the consumers combined. What is the slope and what is the intercept for this demand curve? Recall that, in the case of a straight line demand curve, the slope of the marginal revenue line for a company that does not practice price discrimination is double the slope of the market demand curve. If the marginal cost of making drinks is constant at $3 per drink, and if no cover charge is assessed, what is the best price to charge for drinks? How many drinks would be sold on a typical evening? What would your profits be? If you cut your price by $1 per drink AND assess the maximum possible cover charge without causing a typical light drinker to refuse to enter the bar, would your profits improve? How high would the cover charge be? Calculate both the cover charge and your total profits.

  4. What is identity economics? How does identity economics help to explain economic questions that standard economics fails to address?

  5. Imports from China to the US are experiencing a positive sustained inflation rate, sending the US total inflation on imported intermediates at 9.8% (yearly rate recorded in April 2011). What would happen to the US Treasury yields if over the next months inflation in intermediates passes through to the US CPI inflation rate, under the following two scenarios:
    a: the Federal Reserve decides to fight the inflation spike
    b: the Federal Reserve accepts a permanently higher level of inflation

    Please asnwer accurately as this is an MBA assignement. If possible also send links from internet to enlarge the answer!

  6. Independent Scotland liabilities. The banking bailout cost was 10 billion actually spent with 453 billion guarantee but not actually spent. Independent scotland 8.6% by population of UK debt £910 billion scotland share 8.6% by population minus assets 8.6% 29 billion roughly 66 billion
    47% of gdp

    so if they didnt spend £453 billion what part is Scotland liable for? the amount of interest?

  7. Since congress is responsible for over a $ million of other people’s money, why are there no

    requirements to have any financial knowledge to be in congress?
    Why are there no fiduciary responsibility requirements?

  8. Is it legal (or moral) to borrow money for 30 years at 4.5% interest, give it away, and spend it on other than long term assets, then force the children to pay back the entire amount borrowed?

  9. The Federal Reserve has, as does anything else, has a set of regulations to comply with. The Fed has certain powers to ‘regulate’ the U.S. economy, but it has no power over the frequency of natural disasters, frost damaged citrus crops, and on and on. It may have, in a roundabout way, certain powers albeit extremely limited over the price of oil, political upheavals around the world and the like. At the professorial level, there is a tendency to think things through and this is helpful. This is in stark contrast to the Twitter comments on the economy. Water seeks is own level, and soon all of us realize that the twitter opinions are what they are. By the way, twitter has a set of regulations to comply with. Regulations are like a vaccine, if removed the disease come back.

  10. with the aid of a diagram,explain how price performs the function of eliminating surpluses and shortages

  11. Hi Sir i have several economic questions please help! these are the following:

    1. what are the function of a production possibility frontier?
    2. why is the demand curve negatively sloped?
    3. why is the supply curve positively sloped?

    thank you!

  12. halo, I got something hard with my study, can you help me to send a solution of this task?

    5. A large share of the brick supply in Natuna island comes from two producers: Bricko and Batako. Suppose the marginal cost of producing bricks is constant at Rp 1000 per brick, and the demand for bricks is described by the following schedule:

    Price (Rp) Quantity
    8,000 5,000
    7,000 6,000
    6,000 7,000
    5,000 8,000
    4,000 9,000
    3,000 10,000
    2,000 11,000
    1,000 12,000

    a. If there were many suppliers of bricks, what would be the price and quantity?
    b. If there were only one supplier of bricks, what would be the price and quantity?
    c. If Bricko and Batako form a cartel, what would be the price and quantity? If both split the market evenly, what would be Bricko’s production and profit? What would be Bricko’s profit if it increased its production by 1,000 while Batako stuck to the cartel agreement?
    d. Use your answer to part (c) to explain why cartel agreements are often not successful.

  14. What is your view on the idea that the Chinese economy will overtake the US economy? Not only in PPP but in $ too?

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