Ask an Economic Question

You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.

I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.

  • Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  • Please don’t ask any maths calculations.
  • The question and answer will be published here where everyone can see it (including your teacher!)
  • I aim to try and simplify economics; as a rough guide I would aim at an understanding similar to a good British A Level student.
  • I am looking to explain economic principles / ideas/ recent developments in economics.
  •  I will answer as a new post, if you leave email address, I’ll usually send quick email. Check home page of blog for new post. With question and answers

Add comment at bottom of post.


1,545 thoughts on “Ask an Economic Question

  1. Which are the four factors directly linked to investment and how this causes a shift in aggregate demand (AD) curve?

    1. Unemployment is an economic problem. Ignorance of economics create that problem. India constantly ignores Keynesian economics. There is unemployment and under employment and yet it does not want to increase debt and money supply. India’s national debt is 70% of GDP which is much lower than countries like Japan,China, Italy and US etc. Higher deficit will help in building infrastructures and create jobs. Keynes has said that for full employment consumption muast increase and it is very much true.

  2. draw a production possibilities frontier(PPF) for an economy producing food and clothing, with food on the Y axis and clothing on X axis, use the diagram to explain the concept of scarcity, choice and opportunity cost

  3. In what case can elasticity be difficult to examine in a mixed economy and what possible solution can be offered to it

    1. This is a marketing aspect of business which involves making products distinguishable from that of competition. This can be recognised by consumers, which adds value to a product. For example Apple have their own operating system from all other computers which can be seen as very minimal and aesthetically pleasing. This is unique and will be seen as better than windows by some. Hence they will value it more.

  4. Hello, most of the borrowing constraints are linear
    Loan<(q part of)*(wealth of the borrower)

    Is it possible to formulate a non linear. For example,
    Loan<(wealth of the borrower)^q. With 0<q<1? If yes would be great to know which book or paper formulated it
    Kind regards

  5. How would you briefly explain how the 3 efficiencies (ie technical, economic and allocative) are related to each other?

    that you cannot have economic without technical?
    and that you cannot have allocative without these 2?

    is there any more to do this, ie any more assumptions?


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