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.


2,540 thoughts on “Ask an Economic Question”

    • No, because the monopolistic competition market has 1) many sellers and 2) ease of entry and exit, it is very much impossible for firms to become large enough to experience full economies of scale. Demand is distributed amongst firms so that their output does not yield a level which allows them to operate on the minimum efficient scale in the long run, assuming that they are profit maximisers. To enjoy economies of scale, you must be a large firm like Amazon, which is essentially, a monopoly. Firms in the monopolistic competition market are the likes of restaurants, barbers, and your daily non-branded shop. They will never achieve economies of scale.

  1. Hi, how to answer when people ask ” How is the economy now?”
    What are the variables that we need to include to explain on that?

  2. The major advantage of privatization is to improve efficiency and effectiveness of the Enterprises, do you agree to that or not? buttress your argument

  3. The MPC takes a very wide range of information into account when setting interest rates. This can broadly be categorised into factors affecting the demand side of the economy and those affecting the supply side. Some factors affect both the supply and the demand side.
    Explain how each of the following will impact on the price level/inflation. Complete the missing rows with some of your own information ideas.


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