Ask an Economic Question 2014

You are welcome to ask any 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.

  •     Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  •     Please don’t ask any maths calculations.
  •     The question and answer will be published here where everyone can see it (including your teacher!)
  •     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

If comments are closed: email


335 thoughts on “Ask an Economic Question 2014”

  1. What, if any, is the relationship between GDP per capita and a country’s average wage. The two numbers are often weirdly similar, i.e., the Gdp per cap. of Russia is 14,xxxUSD, the average wage of a Moscowite is 12 to 15,XXXUSD.


  2. I have data on the GDP per capita of Iran from 1980-2015 in constant national currency. How can I convert each year’s GDP per capita to US dollars? (Base year is 2004). Thanks!

  3. Derivation of demand curve on the basis of cardinal and ordinal approach. How it looks like? Could you explain what is it?

  4. For each of the event listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity..

    1) consider market for grape jelly. Peanut butter and grape jelly are complements. Severe mold destroyed half of the next year’s peanut harvest.
    2) consider the auto market. Automakers opened foreign assembly plants after discovering that competent foreign workers are willing to work for lower wages.
    3) consider the market for chocolate bars. There is a rise in the price of cocoa beans.

  5. Is there anything in economic theory that addresses what I would like to call
    “economic abuse” Where the profit of a what a worker does is ten to a hundred times what the worker earns to the Owner or Individual paying the worker. The worker earns $10 a day doing labor that the owner profits a $100 or more from.
    Is this ever addressed or is the worker just seen as another cost of production?

  6. Hi, hope you can help. How would I calculate the total uk household income? I want to be able to estimate how much a flat 10% income tax (with no personal allowances or tax breaks) would generate – not that I agree with this idea.

  7. Instead of pouring billions in quantitative easing – Why doesn’t the ECB use its resources to invest in targeted sectors proven to create jobs like renewable energy or construction?

  8. The cross elasticity of demand for a popular brand of cola drink has been estimated to be +1.8 and for type of iced tea to be +0.8 . What this means ?

  9. if country A operates an open trade policy – zero tariffs – what advantage to other countries could there be in signing a bilateral Free Trade agreement with A?


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