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.
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- 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
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What are the tools for economic model ?
Evaluate market failure.
good morning. is it possible to have a negative money multiplier and negative excess reserves?
EXPLANATION OF CONSUMER BEHAVIORS
what can you say are the roles of the economic and behavioural theories of wages to the determination of wages
If the government is interested in generating a substantial amount of tax revenue per unit, are they better off placing a tax on goods like tobacco & alcohol or on goods like Cheetos brand snacks or Hersheys brand candy bars? Explain by writing sentences but support your answer with graph using the supply and demand model to illustrate the differences between taxing the two types of goods.
https://www.economicshelp.org/blog/794/economics/effect-of-tax-depending-on-elasticity/
I wish to have an example of data response base on populations studies.
2.08 and 1.93 are they elastic or inelastic demand
Elastic is greater than 1
One way in which government redistributed income from rich to poor?
https://www.economicshelp.org/macroeconomics/inequality/policies_reduce_poverty/
I have encountered a multiple choice question that i find confusing.
It asks for which is the most appropriate macroeconomic policy mix if the Australian economy is experiencing inflationary pressures?
and the answer is
a. a decrease in government spending and the sale of government securities by the Reserve Bank
but doesn’t an increase in government spending causes a decrease in inflation instead?
and when RBA is trying to loosen its monetary policy in response to inflationary pressure, doesn’t it buy government securities?
An increase in government spending (financed by borrowing) is said to be an injection into circular flowr (AD=C+I+G+X-M) so should increase AD and inflation.
If Central Bank sells government securities, the idea is that banks reduce liquidity (use money to buy bonds) Therefore, with less liquidity and more bonds, they will lend less to firms, so this reduces demand in economy too.
I am looking at the Cross Elasticity example graph and I can not seem to figure out why I can not work the problem out on my own. When I divide -80 (The change in 400 to 320) and 360 (the average of 400 and 320) I do not end up with -20.. I keep ending up with -.222222 . Would you have any idea why that is ?
There are two ways to calculate elasticity point and arc (mid-point). https://www.economicshelp.org/blog/6260/economics/difference-between-point-and-arc-elasticity-of-demand/
In your case you are choosing the mid-point. In my case, I tend to use the initial starting point. So I calculate as
-80/400 = -0.2
So you are not wrong per se – just choosing a different method of calculating elasticity.
What should a society that cares about efficiency use to allocate resources. Should they abandon the market system?
Hello,
On your post on effects of devaluation, you have a chart indicating “Current account B of P improves” as a result of Increased Quantity of Exports. I am inquiring as to the B and P meaning in that statement.
Thank you for your time and I look forward to future questions and answers.
Current account on balance of payments. https://www.economicshelp.org/blog/glossary/current-account-bop/
Hi.i want some information regarding tha topic of DEBT SERVICING from coutry’s point of view…
I’ve had this question on my mind and I was wondering if you could answer it for me. Its a statement that was brought up by a lecturer and it’s something along these lines… “That economic globalisation will inevitably result in national economies becoming subservient to transnational companies”. What are your thoughts on this? I really can’t seem to find much information online about this topic but if the statement has some accuracy then maybe globalisation isn’t as amazing as I’d once thought. Thanks for your time!