Economics Q + A – 6

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.

  1. Please don’t ask me to do your coursework / assignment e.t.c.
  2. Please don’t ask any maths calculations.
  3. The question and answer will be published here where everyone can see it (including your teacher).
  4. 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.
  5. I am looking to explain economic principles / ideas/ recent developments in economics.
  6. 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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448 thoughts on “Economics Q + A – 6”

  1. choose two industries in your country
    identifying which is labelled and structured they pertain to and state three advantages and three disadvantages of each

  2. hi, my question

    what are the main problems that economics seeks to address ? How successful do you think economic theory is addressing these problems.

  3. Throw some light on Asia & its’ Development.

    How about the Gems – China & India

    Will they be impacted of the global slow down…

    Request an article from you on the forecase

  4. Small businesses are touted as the creators of job growth and it’s often commented that big companies don’t create net new jobs. Here’s my question: is this also true when you examine trough-to-peak job growth coming out of a recession? My hypothesis is that job growth for big companies is limited “through the cycle” but might be quite significant as a source of job growth coming out of a recession. Is this right?

  5. Which of the following events would cause a movement along the demand curve or supply for Indian-Produced clothing, and which would cause a shift in the demand curve and supply?
    i. The removal of Quotas on the importation of foreign clothes.
    ii. A cut in the industry’s costs of producing domestic clothes that is passed on the market in the form of lower prices.

  6. All Equilibrium all involved variables must balances what are the economic implication of this statement discuss

  7. suppose you are marketing head .your campany is planning to float new drink which is blue in colour.
    what lesson from the concept elasticity you learn while fixing the price of new drink?

  8. The school fees that students pay in universities has increased substantially.However,the student population in universities has also increased.Does this phenomenon violate the law of demand? please relate it to economics only

  9. 1. After learning the basic estimation techniques, which of the following regression models will you choose to explore how population and income determine the demand on pizza and estimate the “constant” income elasticity of demand on pizza? Please brief explain your choice.
    • Simple linear model
    • Multiple linear model
    • Quadratic model
    • Log-linear model

    2. In theory, “Giffen good” is a good for which the demand curve is upward-sloping, which violates the law of demand. Please provide at least one example as a Giffen good and explain briefly why the demand curve is upward-sloping.

  10. If all money is loaned into existance either by central banks or the fractional reserve system, then total debt in the system must always equal the total money supply.
    In this case, how will there eer by enough money in the system to pay the original interest, or does this rely on an ever expanding money supply

    • The only way where total debt equal total money supply without increasing money supply would be a debt write-down or default some time down the road. Is this correct?

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