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. hi,
    im wondering if you can give me a brief summmary of the gold standard. what i am most confused about is, say, if , the US has a trade surplus of $31.6 billion against Britain,would that mean that for Britain to make that up they would have to give to the US $31.6 billion worth of gold bars.
    thanks very much

    • This is a situation in which the free market economy is failing to use resources efficiently to provide goods and services which people demand, example failure to provide street lights

      causes
      monopoly, they only produce one kind, no variety

      lack of capital, some goods and services are expensive to produce

      lack of skills, do not have the necessary skills to produce certain goods and services

  2. What would be the best way to solve the following economics scenario?
    An updated ultrasound machine would generate new revenues of 12,000 per year. Because of rapidly changing technology, the doctor will need to replace the machine at the end of 3 years and the trade in value will be $1,000 at that time. to break eve, what is the highest amount the doctor should pay for another ultrasound? He will be giving up 3 % annual earning on the cash that he would use to pay for the ultrasound. Is there a formula that can be used to calculate this problem? Thank you.

    • INVESTMENT will mean:
      creation of jobs, most people in the country will have jobs, thus reducing unemployment rate in the country

      more investment means a rise in the country;s GDP which leads to increased exports, earn foreign currency, BOP STABILITY county’s currency appreciates

      investment will also mean, new and improved infrastructures, improve standard of living

      investment, when more firms are launched it means more GRN revenue through profit tax, and also income tax from employees

      reduce crime, most people are employed as the are new investments in the country

  3. CPI figure calculated in and other economic data the Reserve Bank of New Zealand (RBNZ) increases the Official Cash Rate (OCR) by an unheralded 1.5%
    Discuss the RBNZ’s rationale behind this unheralded increase in the OCR.

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