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.
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- 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.
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Does positive externality belongs to market failure? Will it lead to misallocation of resources?
Yes. Underconsumption of the resource
Does seasonal unemployment belong to frictional unemployment?
No, I think it is different
Do you think that devaluation would be effective for correcting BOP deficit?
I think that would depend on whether the commodities are price elastic on the world market or not.
factors that cause a shift of demand curve
Financing large deficit through seignorage cause inflation, what are effects if we do it in lockdown period?
Explain how perfect competition manifests in real life rural economics
I have two questions related to Pakistan which is under an IMF program. Am sure other emerging markets face these. Pre-covid Pakistan fiscal deficit target was 5% of GDP, central bank policy rate of 9% is 0% in real terms and reserves of 2 months. The Govt stimulus/cash handout is around 2% of GDP. Govt narrative–we are too poor to give a higher stimulus and therefore have to ease the lockdown. Most economists are suggesting to extend lockdown, increase cash handout by an additional 1% of GDP , borrow this from Central Bank at 0% , and half the policy rate to reduce cost of public and private debt. Annual Public debt cost, mostly domestic, is 2% of GDP. Govt , under influence of IMF, is saying proposed steps would be inflationary , violate IMF condition on central bank borrowing and put pressure on reserves. What’s your view on this lives vs livelihood debate, and inflationary impact of borrowing from Central Bank? Thank you
Dear Tejvan, are the common economic theories like:
– Social economics
– Institutional economics
– Neoclassical economics
– Keynesian economics
– etc
1. Are they all equally suitable and applicable to the study of both microeconomics and macroeconomics?
2. Or are there some theories more suited to the study of microeconomics and other theories more for macroeconomics?
Keynesian is more macro. Social and institutional are more micro. Neoclassical tries to do both but is more micro
does tax cuts increase or decrease the interest rate and why?
When the Government borrows money, for things like funding stimulus packages (as an example), will tax-payers money contribute to paying back debts the Government creates through borrowing money… will the amount of money taxpayers have to pay increase in the long run? Or does the Government allow these debts to sit and eventually be repaid when there is an increase in revenue or GDP rather than making its people pay for the funds?
will the to output be in a way affected by the short run growth of GDP? If so how please ?
Are there any notable advantages to a monopoly that would be valuable to Americans that top the disadvantages?
I want to know in detail about opportunity cost theory of international trade
If a supplier is willing to supply only at a certain price will the supply curve be a horizontal line?
If Qs={0 if price is less than1.50
(0 to infinity if price=1.50
Infinity if price is greater than 1.50
How will this supply curve be drawn?
An experimental composite engine block for an
automobile will trim 20 pounds of weight compared
with a traditional cast iron engine block. It is estimated
that at least $2,500 in life-cycle costs will be saved for
every pound of weight reduction over the engine’s
8-year expected life. Given that the engine’s life is
8 years, what assumptions have been made to arrive
at the $2,500 per pound savings?