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.


2,201 thoughts on “Ask an Economic Question”

  1. Please could you explain. Due to the Coronavirus British Airways threatens to lay of 12,000 Furloughed workers, citing that the company “cannot expect the taxpayer to offset salaries indefinitely. I am struggling to get my head around statements that big corporations are going to go be forced out of business. If everyone’s in the same situation, and workers are being furloughed, why can’t the corporations simply switch the power off, lock the doors, leave their assets in place and re-open when things are back to normal?

  2. Please I would really appreciate getting clarification on this. Is demand an intention to buy or the action of actually buying goods or services? And if demand is an intention and not the action of buying how then do economists know your intention so as to measure it? For example, an individual is willing and able to buy certain shoes but there are not available. Some people would say the individual is part of the demand for the shoes.

  3. When the Marshall-Lerner condition does not hold, does a country’s current account deficit improves or worsens with a depreciation of the currency?

  4. Briefly indicate whether each of the following will increase the rate of inflation in Nigeria or not. Give reasons where possible.
    1. Increase in aggregate supply of agricultural commodities in Nigeria.

    2. 60% of the Nigerian budget was spent on curbing of COVID -19.
    3. Loans and monetary donations from IMF and other international bodies worth trillions of Naira.
    4. Drop in global price of crude oil from $75 per barrel to less than $20 per barrel.
    5. Government’s successful implementation of ₦30,000 minimum wage across all levels in Nigeria.
    6. Federal government’s ban on import of rice and second hand clothes.
    7. Total lockdown of commercial activities in 32 states to stop the spread of COVID -19.
    8. Activities of Boko Haram, Kidnappers and Oil Vandals in the country.
    9. Presence of porous borders leading to uncontrolled influx of smuggled goods from neighboring countries.
    10. Reduction in budgetary provision by the federal government to match the current crude oil benchmark.

  5. Suppose that there is an investment with probability p=.75, increases to 1+a and with p=.25 falls to 1-a.
    What fraction w of your wealth should you invest each period to maximise long run growth of your wealth?

  6. I appreciate and respect your recommendations, thanks. I am at home just asking the differences of economic policies in the world and which policy is more effective and benefitable. Thank you.

  7. A firm’s only variable factor is labor and it produces a single product, X. It also has fixed costs. The short-run production function is:

    X = – 0.1L3 + 6L2 + 12L

    Where X is output per week in tons, and L is the number of persons employed.

    (a) How many persons are employed if the average physical product of labor is maximized?
    (b) How many persons are employed if the marginal physical product of labor is maximized?
    (c) What quantity of X is produced when average variable cost is minimized?
    (d) If the weekly wage is $360 and the price of X is $30 per ton, how much X
    should be produced to maximize profit?

    Help me Please


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