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
Examine the likely effects of subsidies given to farmers to increase their profits during times of rising food prices. ?
1) Examine the effects of the balance of payments on the exchange rates in UK and how they manage thrie foreign debts?
2)Explain the effectiveness of various economic growth reforms that were carried out in the past 5 years?
3) evaluate the advantages and disadvantages of the current fiscal policy and monetary policy being implemnted in UK?
Please I need the answers urgently any one help me plzzzzzzzzzzz 🙁
The majority of the world’s diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follows:
Price Quantity
$ 6,000 5,500
5,000 6,500
4,000 7,500
3,000 8,500
2,000 9,500
1,000 10,500
If there were MANY sellers of diamonds, what would equilibrium price and quantity? Why?
If there were only one seller, what would be the equilibrium price and quantity? Why?
If Country A and Country B formed a cartel, What would be the equilibrium price and quantity? Why? Is this cartel likely to survive? Why or why not?
Hi,
What is incentive-efficient or constrained-efficient?
and a microeconomic welfare analysis?
What is a double-digit recession?
if the government is running a budget deficit, does this means that national income will increase?
does it matter if a country has a large national debt as a proportion of its national income?
how would a monetary authority use reserve requirement ratio to give a boost to the economy?
I keep reading about our country’s trade deficit which was £3bn in April. How does that work, if a country is spending more than it’s earning? Are we getting ourselves into more debt? I read that Germany has a trade surplus, which is not surprising but why can’t we do the same?
Assume the cost of operating a restaurant has decreased. Using two properly labeled supply and demand diagrams, illustrate what will happen to the equilibrium prices and quantities of restaurant meals and cookbooks (a substitute for restaurant meals).
Why did the government bail out Lloyds and RBS rather than asking them both to sell some of their assets? I note from the FT Global 500 2010 published in the Financial Times that Lloyds, for instance, has over 1.5 billion in assets and ranks 90th in the world for market value, having rocketed up from 297th position in 2009.
Interesting Question…
1. In a market economy, growth is driven by market demand. But market demand is the “effective demand” from money rather than actual underlying demand.
Given this, is it possible to increase Aggregate Demand in order to represent underlying demand so that our economy grows in relation to our actual needs?
eg. If a person is unemployed, he needs food, but he has no money to buy food and thus has no effective demand. Thus no extra food is signalled to be made by the market – therefore the extra food needed is not produced and the job that it would have created is also not produced and this person remains unemployed…
Is this a real issue? or is there some way that growth can be driven by actual underlying demand in order to represent the true needs of the population?
Additional comment…
I think this question has particular relevance to emerging economies and whether free-market capitalism is sufficient in the early stages of growth to offer them escape from poverty…
since I am under the impression, rightly or wrongly I don’t know, that consequently the only “effective demand” in the market would be from hose who already have money, the more the better, and thus that actually the market is driven by the demands of those who have the most money rather than the least, which from the perspective of true fundamental demand might be ironic in that this would stimulate supply of luxury goods and suppress supply of need items, in an environment where there remains dramatic poverty in spite of pockets of tremendous wealth.
Your analysis greatly appreciated since I’m not sure that I have the full picture there.
thanks 🙂
… oh and because of the idea of “diminishing returns”, this state of affairs perversely increases supply of the goods that are least needed, and suppresses supply of the goods that are most needed in the hierarchy of needs (eg overvaluation of luxury items, and undervaluation of need items relative to the corresponding underlying fundamental demand). as above… is this correct or is there something missed out?
Response to Qu “#126 Robert Bruce McAlpine” above…
A “double-digit” recession would be one heck of a recession – 10%+ loss of national earnings in a single year.
I believe you must be referring to “double-dip” recession, which means that the economy enters a second period of recession in quick succession where economic growth (as measured by GDP) is less than 0% for any 3 month period.