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.


2,291 thoughts on “Ask an Economic Question”

  1. In regards to the Soviet Union and its policies, what were the roles of the Gosplan in the 5-year plans? Additionally, what other incentives would the system provide(other than the obvious ones of equality, Market distribution, and lower monopolization from corporate sectors)?

  2. 2. Suppose that the current market price of tablets is €300, that the average consumer income is €30,000, and that the price of notebooks (a substitute for tablet) is €500. Under these conditions, the demanded quantity of tablets is 5 million per year. For tablets, statistical studies have shown that the price elasticity of demand is -1.7, the income elasticity of demand is 1.3 and the cross- price elasticity of demand is 0.4. Use the point formula for calculations and predict the annual number of tablets sold under following conditions:

    a) Technical improvements in notebooks cause their price to fall to €400 with income and price of tablets unchanged.

    b) Income tax reductions raise average income to €31,500 with prices of tablets and notebooks unchanged.

    c) All of these events described in part a) and part b) occurs simultaneously.

  3. why are agricultural producers so obsessed with maximisation of profits, always wanting the highest possible commodity price?

  4. How relative prices of the two most important factors of production for the European economy changed after the Black Death and what caused this shift

  5. Why is taking into consideration the external benefits seen as a problem? Or in other words, why would it lead to under-consumption of the good if the external-benefits are considered?

    Thank you!

  6. It is true that printing money can cause inflation but doesn’t this rely on the condition that supply/ output is unchanged? Could we not print money and simultaneously have government intervention to increase production, and therefore prevent inflation?

  7. Before the comparative advantage theory was formulated, the belief was that nations shouldn’t trade with nations that don’t have an absolute advantage in the good they require. Hence absolute advantage theory acted as an objection to free trade. Are there any other objections to free trade which have been disproved by comparative advantage theory?


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