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.
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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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whats economics of well being all about
Hi, I have an input ouput modeling qestion.
When looking at final demand for input output modelling do you take out the purchase price of the intermediate good to form final demand?
how supply side policies effect economic growth..???
how the supply side policies will effect the economic growth….????
Hello Chris
Consumer price index is a price set for a basket of goods. At different time this price is compared with actual price of goods. This shows increase or decrease in price. In UK, CPI was increased 2.5 percentage in June 2006 from last 12 month. In Jan 2010 it was at 112.4 and after 12 month it was 116.9. Change in CPI is 116.9-112.4=4.5points (4%)
Petrol rate in CPI in Jan 10 was 1.11pond and in Jan11 it was 1.27 per liter(14%). So its rate increased more than whole CPI. Actually effect of energy inflation is more than its data show. Sometime other prices also increase due to increase in energy prices because energy is an important input in production of many other component of CPI. RPI has higher weight of petrol than CPI.
What are the effects of a fall in Gross Domestic Production (GDP)?
3. The concept of Marginal Propensities is not only important on papers. The real world does have a use for such theories. Explain.
“In the modern business today, business leaders earn more by telling the consumers what to buy, instead of the traditional approach of listening to what consumers want.”Discuss.
E-book reader, Kindle, is a new concept product in the market and has gone through several times of modification. In the name of innovation, this product is priced higher in times when e-books are expected (but evidently not true) to be cheap.
Kindle is not the only product where it is demonstrating to the business environment that demand and supply do not apply here. Price is not determined purely only by the interaction between demand and supply.
Discuss, within the context of Economics, the factors that influence the market price of a product.
M&A activity in Asia is continuing to grow, in both volume and value. There are a few economics theories that explain the motives behind merger activity. However, merger activity has implications for the public interest.
1. Describe the motives behind merger activity and the implications of Merger activity for the public interest.
2. Examples for the Merger activity, related to motives and implications.
Hi godson
Some economics policies do not get success. Sometime conditions are not suitable for these policies. Sometime political conditions become constraints. Many policymaker make policies in their mind, they could not watch reality. Future is uncertain, policymakers cannot estimate future conditions properly.
Now, many countries made policies to control inflation. But most of them failed . One reason behind is they do not have enough power to take strict decision or control on monitory policies. They just try to keep inflation under control with the help of interest rates. This is right but other things are also important in keeping inflation low.
Hello Ina
Supply side economists suggest to low taxes. So there would be more supply of goods and services at lower rates. According to them this will increase demand , employment and growth. Ronald Regan was also impressed from these views. He reduced income tax and property tax. Low taxes make goods and services less costly. With this more demand and production of these goods occur economy. This increase economic growth. There is debate between many economists about benefits of supply side economics.
Hi Elina
GDP is a measurement of economic growth. Decreasing GDP is a signal of recession. More unemployment , less income are results of decreased GDP. Income inequality does not depend on negative growth on GDP.
Hi girl
Marginal Propensities is really very important concept in economics. Not only in theory , it has a big role in modern economy. Although practically we can not measure marginal propensities numbers effectively. Marginal Propensity to consume is a practical activity of our daily life. We have marginal propensity to consume but it is really very difficulty to properly count it. What we do with marginal income depends on our marginal propensity to consume. We spend some part of marginal income and save remained.
Marginal propensity to save depends on human behavior to save from marginal income. In our daily life ratio of our saving change with change in marginal income. We behave different at different level of income.
Hi girl
Law of demand is very important and practically apply on markets.
It is not a law like law of gravity. Economics laws depend on human behavior . We can’t measure human behavior and it is very complex.
Law of demand is a general law . There are many assumptions for this law. No doubt you are all right, practically price is not purely determined by demand-supply. Kindly is very popular in these days. I do’t have numbers but I think Amazon sold many millions Kindles.
Fashion and habits also make affect on demand. Even a dress out fashion with lower rate can’t increase demand. There are many other things that play a key role in determine of price.