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 so that 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.

mail(at)econoimcshelp.org

2,583 thoughts on “Ask an Economic Question”

  1. Hi,
    I’m in an online economics class. One of our worksheet questions is “Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $1000 per month? To $500 per month?”

    the equilibrium price is $2,000 and the quantity is 12,500 apartments. I’m just not sure how to solve or approach this question. Help?
    Thanks!

  2. Hello,

    How do I read Purchasing Power Parity table?

    Does it go like this – statisticians value basket of goods & services in international dollars (lets assume its 20’000 int$), then if I see in the official tables that one country has PPP of 10’000 int$ and other has PPP of 40’000 int$, does it mean that the first country can buy only half of this basket of goods & services and the second one can buy even two of them?

  3. Hello Tejvan,

    I am not an economist but i did took some classes and read some books e.g. “Why an economy grows and why it crashes” and “The German Economy: Beyond social markets” (basics to understand).

    My question is the following: What points, ideas, data and/or areas should i search/study in order to understand a countries future role within the world economy? More specifically Germany.

    I am trying to write a paper on this but have no idea where to start. Hope you can guide me on where to aim and focus.

    Thank you

  4. Other!things!the!same,!a!country!that!increases!its!saving!rate!increases
    a. its!future!productivity!and!future!real!GDP.
    b. neither!its!future!productivity!nor!future!real!GDP.
    c. its!future!productivity,!but!not!its!future!real!GDP.
    d. its!future!real!GDP,!but!not!its!future!productivit

    Why does increasing in the future real gdp occurs.?I think saving and investment are included in the current year’s GDP not that of future.

  5. what are the advantages and disadvantages of investing in a new business? some creditable sources would be a plus as this will be a part of a literature review.

  6. Endangered rain forests, wild fish, elephants and more are examples of the tragedy of the commons. What would economists recommend to save, rain forests or fish stocks? Explain why

  7. money and banking..
    Lullu lime has 7% coupons bonds that mature in 5 years. Investors require 9% on these bonds.

    What will these bonds sell for?

    5.2. What is the current yield on these bonds?

    5.3. Given the price of these bonds today what would be the yield to maturity on these bonds if investors hold them until maturity

    5.4. Suppose you buy this bond when the market rate of interest is 9% and it has a maturity of 5 years and you sell it the next year when the market rates of interest fall to 5%. Calculate your rate of return over this one year period. round up to no decimals.

    5.5. What would be real rate of return if the rate of inflation over this period was 3%? Use the approximate formula and round up to no decimals.

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