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 so that 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.

mail(at)econoimcshelp.org

2,583 thoughts on “Ask an Economic Question”

    • Lower interest rates means that people dont have incentives to save since the idea behind saving is the interst that the money will earn in the bank thus they prefer holding their monies,increasing money supply. Once money is at the reach that easily, people will tend to spent and demand for goods and services goes up and thus there is the general inflation.

    • It increases the amount of money people borrow from commercial banks therefore increasing money in supply

  1. How can I calculate current year at constant prices.real prices and % of gdp I have so help me

  2. There are both positive and negative attributes for increase and decrease in fertility rates, though a decrease in fertility rates means less young people and more elderly, which also has many different effects. Is more elderly a good or bad thing?

    • It is bad because it lowers the market for some goods eg. those that are consumed by the youth.
      It also leads to weak workforce thus slow development.

  3. Why might a rise in interest rates actually lead to higher inflation in the short term?

    • Higher interest rates increase the cost of mortgage repayments, which is included in some measurements of inflation.

  4. What is the one tax government uses to fund the public sector? I am quite thinking it is the income tax but I am not sure. please help. thank you.

  5. Who benefits from free trade? Who can be harmed from free trade?
    Who benefits fair trade? Who can be harmed from fair trade?

  6. Outline factors that make devaluation not to succeed & Reasons why economics is a science

  7. I recall there being a term used to refer to the cost of not doing something, for instance not educating citizens, or not inoculating children. it would be differentiated from opportunity cost, because the meaning is closer to “hidden cost” than the cost of choosing one thing over another. Do you know what I’m trying to remember?

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