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.

By on January 13th, 2015

1,923 thoughts on “Ask an Economic Question

  1. Why do you draw a diagram relating to a negative externality of consumption which shows a shift in the supply curve?
    This is incorrect

    1. Brexit –
      I’m no economic expert, just an ordinary man-on-the-street going about his daily business.
      But recently ,in the light of all this turmoil going on with Brexit I’m beginning to wonder …
      If the EU is all it is cracked up to be , then why does the UK stay away from joining the Eurozone? All the other major players like Germany,France,Italy,Spain,etc. have given up their precious currencies – why not the UK?
      Something does not add up here ! What do our European friends see that we in the UK don’t see,and vice versa? After all, the EU is primarily about economic union, and a common currency appears to make common sense.
      No one – Brexiteer or remainer – ever mentions
      the EUROZONE.
      It seems both sides appear to agree that staying away is, after all, a good idea !
      Any input gratefully received – might even help me make up my mind in the second referendum who knows !

      1. Am asking about the problem faced with transition from command to market economic system and I only see the requirements for a successful transition. Are they the same?

    1. Well, real GDP is adjusted for inflation, to determine if the economy actually grew that year, or wether you’re currencies value just changed. GDP is just your gross domestic product, the value of everything produced in your country, and GDP per capita is the GDP divided by the population. GDP per capita is usually the clearest indicator of development.

  2. There is a movement towards longterm contracting and strategic alliance but not all the way to full vertical integration. So my question is what are some of the reasons deterring some firms from integrating fully regardless of the benefits of full vertical integration

  3. Are there any chance that terms of trade or inflation rate can affect the exchange rate of an economy? And, how to use marshel-lerner condition or J-curve to explain above? thanks

  4. Other things remaining the same, when
    consumer’s income increases, his equilibrium
    point moves to

    A). A lower indifference curve
    B). A higher indifference curve
    C). Remains unchanged on the same indifference curve
    D). To the left-hand side on the same indifference curve

  5. when a government use more than what he get from tax that result to deficit right then i wanna ask if how much government have to pay back to push down Debt to GDP. i wanna know how to calculate that interest he pays back please help

  6. Please make cleary for me ,why marginal revenue must be equal to marginal cost?And why marginal revenue is blew the demand curve?.Thank you i hope from you to make it clear.

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