Readers Question: I trying to find appropriate policies that the Icelandic government could adopt to deal with the country`s substantial current account deficit. Do you know what policies they are using for the moment, and more importantly which policies they should adopt? Related Problems with Iceland Economy Solving UK Current account deficit At the height …
Readers Question: What is the difference between a debit and a debt? A debit item refers to a system of accounting which places a negative amount on the left-hand side of an accounting column. A debit is associated with the purchase of assets or expense transaction. e.g. money leaving your account to purchase a factory. …
Readers Question: Are books inferior goods or normal goods? An inferior good is a good where a rise in income leads to lower demand. It is a good with a negative income elasticity of demand. “When I get a little money, I buy books. And if there is any left over, I buy food.” Desiderius …
Question: Why do we have a VAT rate of 17.5% on many ordinary goods and a tax rate on petrol / tobacco of over 50% – yet when people propose a tax of 0.01% on currency transactions it is denounced as unfair and economically damaging? At the G20 summit, Gordon Brown, proposed a version of …
The Baltic Dry Index is a measure of the international price for sending commodities by sea. It is calculated by combining the price of different shipping sizes for dry commodities. Commodities include metals, grains, crude oil. The Baltic Dry Index developed in the mid-eighteenth century. It gained the name Baltic Dry index partly because at …
Readers Question: How much money should 18 year old have? I have been thinking about this for a while and was hoping you might be able to shed some light on the subject. Please help. Thank you in advance. There are frequent readers comments about the minimum wage for 16-18 year old Most seem to …
Readers Question: discuss whether economic actions by individuals always results in net benefit to the society “Many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own …
Readers Question: Why is Inflation negative when prices are rising? In 2009, there was a brief period of negative inflation (RPI measure of inflation was negative) Often people ask, how come the inflation rate is negative when I notice prices rising? Firstly, if prices in the basket of goods used to measure inflation are rising, …