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”

  1. Please ,can you explain how devaluation of Nigerian Naira with falling oil prices and oil is roughly 75% of Nigeria’s main revenue Will help to improve the exchange rate of Naira to Dollar .

  2. hello sir! my question is from you.
    how can producers maximize their profit ? mention it in ten points.
    thanks

  3. Hello was wondering why might reliable house prices in the UK be of higher priority for the private and public organisations than in some other countries thanks

  4. If commodity/ raw material prices allow firms to produce for profit and wages hold steady will we see a prolonged period of “good” deflation?
    If wages hold steady does deflation affect the real value of domestic borrowing?

  5. This is a simple question but my economics courses were many years ago. It is also a Real Estate question. What is the principle called that causes more desired locations to have higher cost of living and higher pay?

  6. How mercantilist ideas relevant to current economics issue such as currency depreciation, tariff, and international trade

  7. Lets say a poor country wants to grow faster. It can do so by saving and investing the income it has. For now lets say investment from abroad is not possible. Thus, GDP growth will be its own savings divided by ICOR.
    But since it is a poor country it does not have much savings. Lets say savings are close to bare minimum. Now in comes the government, so if the government decided it wants to run a deficit (not too much but a little bit) and monetize the deficit (thus printing more money), and use the money for investing in productive assets, will this still be bad economics? Will it cause much inflation? if this is bad then how else a poor country will grow?
    Waiting for your reply. Thanks

  8. The proposed levy plan by the government planned to raise tens of millions for recycling purposes of glass bottles served in different products in Hong Kong. This would come as an initiative where importers and distributors pay a fee of about HK$1 per every one-litre bottle. How to analysis the topic with benefit–cost?

  9. Newspaper companies appear to be under threat of becoming irrelevant as the sale of newspapers has plummeted over the last 20 years. If you were chairman of the board of a newspaper company, how would you respond?

  10. Hello

    in his article (Macroeconomic Fluctuations,Inequality, and Human Development) Stiglitz argues that economies with greater volatility typically excerpt a higher average unemployment rate. Unfortunately, he does not explain how this happens (probably because it is way too obvious for any economist, I assume).
    Does somebody know the theory behind this mechanism, or could explain to me why volatility leads to a higher average unemployment rate?

    Thank you

  11. Hi, what’s the difference between demerit goods and negative externalities and merit goods and positive externalities – surely for merit goods and positive externalities they would be under produced and have benefits to the society and the diagrams are the same so I’m slightly confused, Thanks

  12. why a monopolist is likely to earn super normal profits in both the short run and the long run.

    • A monopoly is a sole seller or supplier of a good.There are barriers to entry and exit and also the monopolist is a price setter of the goods.

      in the short-run,the monopolist earns super-normal profits. Due to barriers to entry,the abnormal profits are still attainable in the long-run.

  13. What strategies do managers of companies have to keep in mind about elasticity to maximize revenues?

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