Readers Questions IV

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You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions.

I will post the answer on this blog, for everyone to benefit from.

I shall try to answer the economics question and / or point to other resources but please bear in mind.

  1. The replies will be guidance and not for duplication. Your essays should be your own work.
  2. My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
  3. I can’t guarantee to always give full answers it also depends on my time schedule.
  4. I will answer as a new post. Check home page of blog for new post. With question and answers
  5. Generally, I don’t answer questions, which involve mathematical calculations, they tend to be doing someone’s homework. however, I may give examples, of calculations, if I think it helps explain economics principles.

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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If I answer your question, and you find it helpful, a donation is appreciated here for details on donating $2.

276 thoughts on “Readers Questions IV”

  1. homework question need help with..

    abc and xyz are competitors. currently abc earns annual profit of $100,000. if abs cuts its market price enough to force xyz to shutdown it will earn no profit this yr. without a competitor abc expects to earn 110,00 profit per yr.
    at a discount rate of 10% per year is driving xyz out of business a good investment for abc ?
    is likely that xyz will stay out of business forever? what circumstances would allow it to re enter the market regardless of what industry this is?

  10. 1- Why should policymakers think about incentives?
    2- Why isn’t trade among countries like a game with some winners and some losers?
    3- What does the invisible hand of the market place do?
    4- Explain the two main causes of market failure and give an example of each.
    5- Why is productivity important?

  11. Hi – I hope to explain the fiscal multiplier effect to a bunch of non-economists (business professionals). I’m planning to start with the Keynesian GDP equation and work from there. Where I am stumped is how to represent the effect of a reduction in tax (lump sum or whatever) on the GDP equation, i.e. does a reduction of tax constitute an increase in the G variable, and the multiplier effect should be represented in C? Or C, In and Im? I can calculate the overall impact on GDP, i just don’t know how to show the change within the GDP equation… appreciate any advice you can give.

  12. ‘Should UK government provide financial assistance to manufacturing industry?’

    It’s an essay question, and i have no idea whatsoever. Its for AS economics.

    I need: An introduction
    2 arguments for
    2 arguments against
    And a conclusion

    Any help? I really have no clue. The fact that i started economics late doesnt help either. Thanks.

  14. I have to write a essay on “whether the Baltic States should be allowed to adopt the Euro before they fulfil the convergence criteria?” I am unsure about which topics i should talk about and about an overall conclusion, so far i have talked about the convergence criteria and the advantages/disadvantages of the euro, now im stuck and unsure what to write!
    Thanks

  15. hi,

    I would like to know how did the financial crisis affect stock markets e.g bonds were they less attractive?

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