You are welcome to ask 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.
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- 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
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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Economists talk about wage inflation causing price rises, but doesn’t this betray a certain ideology? They make it sound like a bad thing, unions winning greater rights for their staff. But wouldn’t a left wing economist argue that profit in a capitalist system is simply unpaid wages? Rather than taking a cut in their profit, companies pass on the increased costs to the consumer, so does that mean that wage rises in the public sector don’t lead to inflation, because government departments don’t have anything to sell to the consumer that they could increase the cost of? Also, if anti-trust and competition regulations were properly enforced, doesn’t it mean that companies wouldn’t be able to pass on increased costs to the consumer, because of competition, so the workers would get their wage rises, the consumers would get their cheap goods, inflation would stay low and the only negative outcome (for the capitalist) would be that they would earn less profit?
Just a quick one. Are UK banks paying interest on the government bailout they received?
Hi, im not quite sure how this works because im new on the blog and i dont know where you ask questions. i seriously need help with this question, i don`t know what im supposed to do.
It says prove that Marginal Cost is equal to the prise of commodity divided by the marginal product i.e. MC=Px(1/MP)
What have been the drivers of the mortgage default rate in the 2008 recession compared to the late 1980s/ 1990s?
We know that milton friedman was a big influence in the economic community, renowned for his work but how has his contributions influenced our understanding for the role & significance of money in the economy?
WHAT IS THE ADVANTAGE OF MIXED ECONOMY?
1) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the implicit tariff equivalent of quota.
a. 25%
b. 20%
c. 225%
d. 180%
2) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the quota rent.
a. 7,500
b. 37,500
c. 74,400
d. 18,600
3) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the quantity of imports before and after quota
a. 27200 ; 26500
b. 6,200 ; 2,500
c. 74,400 ; 37500
d. 326,400 ; 397,500
4) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the value of imports before and after quota
a. 27200 ; 26500
b. 6,200 ; 2,500
c. 74,400 ; 37500
d. 326,400 ; 397,500
5) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the value of domestic supply before and after quota
a. 10,500 ; 12;000
b. 126,000 ; 180,000
c. 200,400 ; 217,500
d. 16,700 ; 14;500
6) Suppose at the world price of $12. 10,500 units were produced domestically, and 16,700 units were consumed. When a quota was imposed, it caused the domestic price to rise to $15, domestic production increased to 12,000 units, and domestic consumption decreased to 14,500 units. Calculate the value of domestic demand before and after quota
a. 10,500 ; 12;000
b. 126,000 ; 180,000
c. 200,400 ; 217,500
d. 16,700 ; 14;500
7)One of the main motives encouraging the formation of regional blocs is:
a. Producer’s anticipation of trade diversion benefits
b. smaller markets facilitate economies of scale
c. Reduce the dependence of less developed countries on each others
d. None of the above
8) Suppose that there is a 20% import duty on pocket calculators, but no import duty on the components used in their manufacture. If domestic calculator manufacturers use 70% imported parts, then the effective protective rate of the tariff is
a. 66.7%
b. 150%
c. 28.6%
d. 20%
9) Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the vehicles assembled by South Korea and that these components have a value of $10,000.
The price of an imported vehicle to the U.S. consumer after the tariff has been levied is:
a. $22,000
b. $23,000
c. $24,000
d. $25,000
10 ) If the current account balance shows a surplus, and financial account receipts exceed financial account payments, then the official reserve transactions balance
a. must be positive, indicating an increase in U.S. international reserves or a
decrease in foreign central banks’ international reserves.
b. must be negative, indicating an increase in U.S. international reserves or a
decrease in foreign central banks’ international reserves.
c. must be negative, indicating a decrease in U.S. international reserves or a
decrease in foreign central banks’ international reserves.
d. must be negative, indicating a decrease in U.S. international reserves or an
increase in foreign central banks’ international reserves.
Q1. The table below shows the hypothetical production of cloth and rice by Nigeria and Benin republic.
Countries labour rice cloth
Nigeria 100 25 20
Benin republic 100 10 15
(a) Determine the opportunity cost of producing cloth and rice in Nigeria and Benin republic.
(b) Which of the two commodities does Nigeria and Benin republic have greater comparative advantage over reach other and why?
(c) Which of the two countries have absolute advantage in the production of cloth and rice?
Q2. In year X, 25 naira exchanged for a dollar and later in year Y, 75 naira exchanged for a dollar through the forces of demand and supply.
(a) State the effect of the above on the value of the dollar.
(b) How much, in naira, would be needed to purchase a 25,000 dollar worth of car from the united states of America in year X?
(c) How much, in naira, would be needed for the same purpose in year Y?
(d) (i) Calculate the percentage change in the value of the naira between year X and year Y. (ii) From your calculations, state the effect on the value of the naira.
Q3 The table below shows the trade position of country X and Y in year 2000 and 2003.
Country Year export prices import prices
X 2000 1496m 1698m
Y 2003 1520m 1306m
(a) use the table to calculate the terms of trade for country X and Y. (b) state the condition of terms of trade for the two countries. (c) Give a clear definition of terms of trade. (d) Mention three ways of improving terms of trade.
‘why is the size of the uk government debt so important’
Hey, i just would like u to roughly outline the methods for sucessful and complex analysis and evaluation of the basic economic problem through news articles. how do i link financial problems liek national debt…etc to the basic economic prblem and scarcity of human resources?
Thankyou in advance,
I am a bit perplexed by some data that I have been looking at from the DoT’s website. I have been debating with a friend about our national debt and he posted a graph that shows our(US) outstanding debt having risen at a fairly constant rate since the Great Depression. Even though debt/GDP graphs show us as having payed down much debt from the period 1946-1970, my friend’s graph is not incorrect because I cross referenced the data with the DoT’s Outstanding Debt Charts and our outstanding debt has indeed risen since 1932. I do understand that making interest only payments while GDP continues to grow will create the illusion that we are paying our debt down on debt/GDP charts. The strangest thing that I find about the data is that in the ten years leading up to the Great Depression we were diligently paying down our debt, giving merit to his claim that we cannot pay our debt down without our monetary base shrinking and causing a recession/depression. I really want to tell this guy that he has bought into conspiracy theories but in light of this information I am hesitant to do that. Am I missing something here?
The US has a national debt of $14trillion. How much of the rest of the world’s debt does the US hold? If the US called in all it’s loans to the UK, Mexico, etc, could it pay off it’s debt?
hi,
what was actually happened in grameen bank?what was the scandal happening?
how muhammad yunus did this?
I Am a Beigineer of Economics in M.B.A.how to prepare my materials to understand
How did capital inflows in the nineties and two thousands act as a catalyst for the distortion of housing prices which resulted in the real estate bubble?