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I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.
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Hi,
I’m interested in researching/learning more about the distribution of wealth. I know the Gini coefficient is used to measure income inequality from a purely equitable basis. I’m wondering if there is any research in what income distribution would be under a pure market model.
In other words, imagine a theoretical pure market. Set up a chart with income on the x-axis and percentile (from 0-1) on the y, would you expect a linear progression, a concave cure, or a convex curve.
Any insight on this or references to other literature would be great.
Hi Anath
After war, if petrol prices increased this can hurt car demand
If car demand is highly elastic , then car producers have to bear more.
Hi Saynogirl
Elderly people have very little role in economy, specially in developed country.
Most of them take pension and do not work. They do not create value and just behave as
a consumer. They do not work as value producer in economy but work as coordinators.
They encourage employment. They take pension & spend it. Thus they create demand.
This demand has good role in economy. Their role is positive in employment.
Actually in modern age of technology, a person can produce much more than he can consume. This creates economic cycle coordination problem. They acts dummy role and
give balance to economy. But economy also have to pay their cost
Hi JAMES
It is really interesting question. When central bank increases rates it is generally
believed that inflation will slow. High rates would decrease liquidity . People would have
less cash to spend. High rates will also make borrowing more costly. They will
increase opportunity cost of business. Thus there will be less investment.
High rates cools the economy.
But they have some limitations. They works at some level.
Actually interest rates, inflation and budget deficits have strong relations.
If anyone say he can control inflation just with interest rate , he is wrong.
Only interest rate will not work.
If a country has increasing budget deficits, increasing trade deficits, and increasing population. How a bank can control inflation with interest rate.
Interest rates cool the economy but budget deficit, production growth & current account
are also very important in inflation.
What would be the impact of a decision to raise interest rates in an economy where there is both a high rate of inflation and a large current account deficit?
Thanks.
Hi. I want to know the economic contribution of elderly people in the development of a country? Thank you beforehand.