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 where 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.

By on January 13th, 2015

1,895 thoughts on “Ask an Economic Question

  1. By how much would government expenditure need to increase in an economy with a multiplier of 5 if the government wished to increase aggregate demand by $1000

    And the answer is $200

    How do you calculate it?

    1. I don’t think it make sense because they are meant to offer or provide a service to citizens, by default make enough income for their sustainability to avoid bail outs from the government, a surplus is a stretch.

  2. In the U.S. I have noticed that most restaurants and fast food places have window signs advertising for workers. Would these minimum wage workers, as a collective, be considered a monopsony or a monopoly?

    Thank you.

  3. Will you be adding to the “Economies of Scale” section of the Barriers to Entry page — — that the costs of regulation and reporting imposed by government often are a fixed cost that is more easily borne by larger firms?

    Also, a section on occupational licensure and licensing requirements that apply to firms might be a good addition. They may not be much of a consideration in the UK, but in the US, some ridiculous fraction of jobs require a license — often one unrelated to the work, or clearly created to stifle competition. And for some businesses, existing firms have to approve the entry of new competitors.

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