You are welcome to ask questions on Economics. I am looking to explain economic principles / ideas/ recent developments in economics. Due to the volume of questions, I can no longer promise to answer. But, I will try if it meets below criteria.
I will post the answer on this blog, for everyone to benefit from. I never email individual answers
Please Bear In Mind
- Use google custom search (top right) to see if question has been asked. If I have already answered a question I don’t tend to repeat it.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- Don’t ask me to do your coursework / assignment e.t.c. The answer will be published here where your teacher can see it.
- My speciality is economics for British A Level standard.
- I don’t answer university questions or maths calculations
- I am looking to explain economic principles / ideas/ recent developments in economics.
- I will answer as a new post. Check home page of blog for new post. With question and answers
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.
Related
About The Author
why do we witness the failure of economic policies over time and how can we resolve this
Economic quastion need answer please if you now only i cant figher out how to solve this?
suppose the following table reflect the total satisfaction derived from consumption of pizza slices and pepsis. assume the pissa cost $1 per slice and a large papsi cost $2. with $20 to speen, what consumpation mix will maximize satisfaction ?
quantity consumed 1 2 3 4 5 6 7 8 9 10 11 12 13 14
tottal units pleasure
from pizza slices 47 92 132 166 196 224 251 271 288 302 212 215 312 300
total units of pleaser
from pipsi 111 200 272 336 386 426 452 456 444 408 340 217 92 -17
Thanks Raj,
but i am still confused. Given the numbers I provided how can i tell that energy prices are rising faster than inflation. For example, if it were ex-zebras instead of ex-energy, how can i tell if zebra prices are rising faster than prices on a whole. I do not understand the math behind it. Any information would be greatly appreciated.
Hello Chris
It is very simple. Energy Is most important economic concern if our time.
Energy specially crude oil and gas is most important commodity at this time.
Oil, gas and coal reserves are very limited and demand is growing regularly.
Energy has double effect on economy. First it is used for personal consumption. Second most critically it is also an input for production. In 1996 price of crude oil was just near $20.Even market price of oil today is much undervalued. Its natural price should be much higher. Oil reserves are decreasing. No one can produce oil. It is gift of nature.
Nuclear energy is believed to be an alternative to oil but you have seen circumstances of JAPAN. From agriculture to industry every thing depends on energy which is mostly generated through non renewable resources. In July 2008 oil price rose to $140 and theoretically it should go up with time because oil reserves decreased from that time and demand is increasing. Oil price would go much high from there. Demand of oil is projected to increase 40% by 2030. From where would we get oil. Modern economy depends highly on oil. Demand of crude oil is increasing.
The CPI for all items was 202.9 in June 2006 and 194.5 in June 2005. The CPI for all items less energy was 203.6 in June 2006 and 198.5 in June 2005. Calculate and interpret the inflation rate based on these two measures.
All items – 4.3% inflation
Ex Energy – 2.6%.
Answer – the inflation rate for goods excluding energy was less than the inflation rate for all items over this 12 month period. This means energy prices must have been increasing faster than the over all price.
Please explain whey energy prices have been increasing faster than the overall price.
Hi Marg
Investment increases output. Investment is cause and output is effect. In long run
output depends on investment and investment depends on demand. Yes at some level
output itself may create demand . This is reason why output is increasing rapidly in China and India but not in America or England.