Ask an Economic Question

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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”

  2. Hello! I would like to know how the growth in economy caused by factors such as the Royal Wedding is explained. I understand both demand and supply increase, but why? is there a psychological factor?

    • 1. Rise in exports: people from abroad (with foreign money) come into the UK in order to observe the Royal Wedding. These individuals then spend their $ on tourism, food, hotels… (AD inc)
      2. Accelerator effect. Firms expecting a rise of AD may increase the supply of goods & services because supply takes time to make. e.g. if Transport for London expects there to be an increase in the number of individuals going to the Buckingham Palace by bus or underground, they may increase the supply of buses that take people to such destinations (i.e they purchase more buses and employ more bus drivers expecting higher demand). These buses take time to make – so TfL need to be on their toes.
      You could argue that in turn, output increases (because I has increased), average wages increase (benefits -> bus driver) and this leads to a further increase in AD through the multiplier effect.
      Hope this helped! 😀

  3. “Market structures are very important in explaining the functioning of various economies”.Discuss this statement using diagrams where necessary please.

  7. Hello, Would you be able to answer the question. Why is a current account deficit a benefit for an economy? Two reasons please.
    Chrz

  11. Dear Tejvan, how is it that as a component of aggregate demand, consumption accounts for around 60-65% and investment accounts for around 15%, but government spending amounts to 40-45% of GDP. Does the government component of aggregate demand exclude factors unrelated to production such as spending on pensions and transfer payments?

  12. Am a new visitor to this sight. I honestly have loved it. How may continue to benefit from this. Note, am not an economics student, but I love to know stuff.

  13. What is the difference between the level of economic activity and the pattern of economic activity?

    • Short Term: level of economic activity. Currently the level of economic activity may be said to be low due to rising uncertainties behind the Brexit process.
      Long(er) Term: pattern of economic activity. The pattern is over a period of time – so you could say that since 2010 unemployment has been decreasing. It’s a more dynamic concept that the level (a static situation in one point in time)

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