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”

  2. If a firm finds that its marginal cost of production is $30 and its marginal revenue is $25, explain what would be the appropriate response if the firm’s goal is to maximize profits. Use marginal analysis in your answer

  3. A firm finds the following about its costs: AVC = $10, ATC = $15, MC = $12. The firm sells its product in a competitive market for $12/unit. The owner asks you for a recommendation on whether to continue to stay in business. What is your recommendation to the owner? Be sure to give economic justifications for your recommendations.

  4. Economists believe that, for the most part, free markets work in an efficient way to allocate scarce resources to their most valued uses. In the model of perfect competition, firms act in their own self‐interest by trying to maximize their own profits, but as a result, society ends up using resources efficiently. Suppose the demand for beef fell for some reason. How would firms respond to this in the short run and in the long run? Clearly explain the process of how firms end up utilizing resources as efficiently as possible. Use diagrams to supplement your answer

  5. I have a question regarding stimulation of the economy. If I am right, the point in which we start to leave a recession or depression is when firms believe that we, as an economic entity, have hit the worse we can hit, and that therefore, since it’s not going to get any worse, that it is logical to take advantage of low interest rates, and therefore barrow money, therefore start hiring, and therefore, through the firm’s very own personal interest, contribute to the recovery of an economy.

    Now we know that the federal reserve tries to accomplish this by buying bonds, therefore liquidation of funds, therefore increased supply in the loanable funds market, therefore low interest rates. Therefore, that amount of money that has increased, even though there is a lot of it, it still has an interest rate for a firm wishing to barrow that money because the debtor obviously has an interest to make money.

    So, basically we have the FED using it’s money to liquidate the fund’s of other people, and those other people are lending, or a portion of them are lending, the fund’s that they now have because of the FED. Wouldn’t it make more sense for the FED to, instead of purchasing bonds so that those people that held the bonds may become debtors, to rather just lend the money directly to firms at a zero percent interest rate?

  6. Hi there, I’ve got 4 questions I have in mind,
    1. How does the economy grow in the classical system?
    2. How is economic growth achieved in the classical system?
    3. What is the main driver of output, employment and inflation in the Keynesian System
    4. How is employment explained in the Keynesian model?
    I

  7. Hi.
    I have a question which really i couldnt find any real evidence to find out the answer.
    The question is that if a company or bussiness ( giant or small) can have 60% or even more annual profit?
    I mean that i see mutual funds offering really high percent of profit annually but i dont know if it is reliable and practical or not. And i couldnt find out that how much did giant companies like Shell , Woodside ,Apple or Toyota did profit last year .
    Where can i find out about their profitibility?
    Another problem i have is that i could find some numbers showing how much for example Shell profit last year but these numbers didnt clean out about the percentage they benefited.
    Thanks in advance.

  9. hi,
    i know this will be a very naive question but i am new to economics.
    this is a basic doubt,
    i read today that US owes an overall debt of 16 trillion, similarly india is also too worried on its fiscal deficit, i think that every country owes some debt. so if every one owes some money, then where is that money coming from???, or in other words, if everyone’s account balance is in -ive then where is that money come from and to whom do they have to pay it back to???

  10. What are the primary methods for utility elicitation, and what are the strengths and weaknesses of each of them?
    Also how are utilities calculated using a survey-based quality-of-life instrument?

  11. What two or three economic theories of health behavior, could help me determine whether younger adults would be more or less likely than older adults to
    brush their teeth after meals?

  12. What are the primary methods for utility elicitation, and what are the strengths and weaknesses of each of them?
    Also how are utilities calculated using a survey-based quality-of-life instrument?

    Your comment is awaiting moderation.

  13. Anne has a job that requires her to travel three out of every four weeks. She has anannual travel budget and can either travel by train or by plane. The airline she typicallyflies with has a frequent traveler program that reduces the cost of her tickets depending onthe number of miles she has flown in a given year. When she reaches 25,000 miles theairline will reduce the price of her tickets by 25% for the remainder of the year. When shereached 50,000 miles, the airline will reduce the price of her tickets by 50% for theremainder of the year. Graph Annes budget line, with train miles on the vertical axis andplane miles on the horizontal axis.

    • Hi, I’m doing a history project and my topic is related to Economic Inequality and social justice. I was wondering if I could interview you maybe through email just 2-3 questions. I would really appriciate if you could email me back asap! Thanks!

  15. To what degree has a commitment to social justice been significant in creating Canada today? (based on economic inequality)

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