Economic Questions V

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You are welcome to ask questions on Economics. I am looking to explain economic principles / ideas/ recent developments in economics. Due to the volume of questions, I can no longer promise to answer. But, I will try if it meets below criteria.

I will post the answer on this blog, for everyone to benefit from. I never email individual answers

Please Bear In Mind

  1. Use google custom search (top right) to see if question has been asked. If I have already answered a question I don’t tend to repeat it.
  2. The replies will be guidance and not for duplication. Your essays should be your own work.
  3. Don’t ask me to do your coursework / assignment e.t.c. The answer will be published here where your teacher can see it.
  4. My speciality is economics for British A Level standard.
  5. I don’t answer university questions or maths calculations
  6. I am looking to explain economic principles / ideas/ recent developments in economics.
  7. I will answer as a new post. 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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467 thoughts on “Economic Questions V”

  1. with regards to uk,s national debt is there any way to see who the debt is actually owed to as the man in the street can not get an answer to who his country owes this debt to

  2. Hi,

    Basically, during the EAster holidays i’, doing a revision course for all my subjects, but in AS Economics, they only offer Edexcel and AQA, but i do OCR in school. Can you please assist me by telling me which of the 2 boards are most similar to OCR?

    Thanks

  3. Hi Steave
    According to CIA UK has 68% national debt to its GDP. But actual figure may be little different. Debt may be divided into two parts.
    1.National Debt-It is debt owned by country s own residents. Means to say government has taken loan from its one country in their own currency. It is called internal debt.
    2.External Debt- This debt owned by congeners lenders.

    National debt is not as big problem as external debt. One main reason is that government has right to print money. So it can pay national debt. But it shows undisciplined monetary policies and may have bad effect on economy specially devaluation of currency.

    UK Government has taken loans and UK residents are lender. It depends on how much income government has to satisfy its financial needs.
    [email protected]

  6. Hi Israil

    Banks create money in many ways. I think you already know meaning of money. Money includes paper money, bonds ,deposits etc.
    Most common way of money creation is Fractional Reserve Banking. It increases money many times. For example you deposit one million dollar. You receive a certificate. Than same money is given to another person (Mr. X)as loan by bank. Now total money increased( Cash+ Bank deposits) . Mr X deposits that money in another bank. So money is increases. Actually under general monitory policy banks need to keep only very small part of deposits . Central banks also give loans to other banks.
    Another way of money creation is buying financial assets such as treasury bills, bond and many others. Bank can buy govt. bonds. Central banks also print paper money .
    Ok
    [email protected]

  7. What happens to the supply curve for bluejeans if the price of another good you produce with the SAME resources becomes significantly higher? Why?

    Consider each of the determinants individually (one at a time): if that determinant increases, how does that affect the amount of the good that you offer for sale?

  8. If two companies like Nissan and Renault have formed an alliance, could that be named a collusion as in an oligopoly?

  9. Oligopoly is situation where market is controlled by few sellers. Collusion is much suitable in Oligopoly.
    Nissan and Renault does not have much share in car market.
    They together may not much influence car prices of whole market.
    It think it is not clear oligopoly. Yes there may be benefit for both. If
    these companies would have large share like 70-80 percentage or above it would be
    oligopoly. In some special area where both have huge impact on market, their collusion may be called oligopoly. Honda, Sazuki, GM, Nissan, Renault and many other companies may create oligopoly. Oligopoly helps in setting price. So they may reduce side effects of compition.

  10. If price of other good remains high , I think supply curve of material of blue jean would downward. This may create negative effect on supply side Resources of blue jean may become more costly. It would increase price of Blue jeans.

  11. Economics is the study of how society manages its resources; how they make choices, essentially making trade offs

    I need help urgently – I need to complete this assignment by the February 7

  12. Economics is study of resources, how to manage them for maximizing their value.
    Resources are sources of values.

    What is Economics?
    Economics is study for knowledge of how to get maximum value from limited resources for benefit of humen. Humen make society. If there are unlimited resources, then there is no need of Economics. But resources are limited. We need to make maximum benefit from them. Resources are two types. Renewable resources and non renewable resources.

    Society – Economics is study of resources for society. Society is narrow term of humen. Society is final beneficiary of economics. Aim of economics is to try maximizing economic benefit of society. Without society there is no need of economics.

    Aim of every law of economics is to try manage resources in best manner.
    Management is a process of decision making with aim to make best decision.
    We can take best decision only if we have proper knowledge of matter.
    We need to study all circumstances, alternatives, limitation and possible results
    for making right choice.
    We need to make decision relating to production, distribution and consumption of resources. For this we need Economics.
    For example, concept of marginal cost is a marginal opportunity cost . We need to study marginal cost in making decision related to production. We need to increase production keeping in mind marginal cost of production. We need make decision related to production.

    There are much more, but tomorrow is my marriage. So I have less time.
    Can you give wishes to my wife, I would feel good. Mob no is 9463665087(India)

    OK
    RAJ

  13. My marriage ceremony would be held tomorrow. If any one give wishes today to my wife I would feel good. Her no is 9463665087 (INDIA)
    Regards,
    RAJ

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