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 am looking to explain economic principles / ideas/ recent developments in economics.
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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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Hi,
I work with various energy monitoring markets that lead a consumer to reduce their consumptions of various energy sources, this awareness and related monitoring products are typically funded by an energy provider.
How does this work, that the provider, to whom you pay for supply, is giving you a product or mechanism to, in effect, reduce that same product you take from them?
Hello Mohammed
Amount of money, velocity of monetary transactions (money circulations ), price of transactions and amount of transactions(means total output) are main four components of quantum theory of money. This theory predicts that these four process in economy make effect on inflation.
M*V=PRICE LEVEL * OUTPUT
price level= (m*v)/output
As amount of money increases inflation increases. The main assumption in this theory is growth in total money and in velocity of money are responsible for inflation. Central banks can increase or decrease money supply.
If velocity of money and amount of monetary transactions do not change then price of transactions (Increasing p is inflation ) would be equal to money growth.
Hello Cayau
If an economy is not working efficiently , money supply to idle resources and low interest rate can be used to increase output in an economy. Government should put money in idle resources. Government can give employment in public sector which is not properly present in economy. For example government can create shipping company if shipping industry is not playing a good role and there is capacity for shipping industry. After some years govt can sell company. Govt should decrease tax to export oriented activities as it would create more external demand. Best way to close inefficiency of economy without large deficits is best use of income. Income from taxes should be used as maximum idle resources put on job and maximum demand is created from that amount of money. Demand is key to the output in economy.
Hello Barka
Equilibrium unemployment is a situation where aggregate demand and aggregate supply of labor at given wage rate are equal but still there is unemployment in an economy.
Hello Sanghita
In consumption function income changes more than consumption because we do not spend all our marginal income. You earn $5000
Per month , After one year your salary increases to $ 8000. Your marginal income is $3000. Your consumption would be equal to income only if you spend all $3000 you more earn which mostly does not happen. Mpc and mps is not different from above. MPC is rate how much we spend with our marginal income. If you spend $1500 and save $ 1500 from you extra income then your MPC would be .5 and MPS also .5
MPC measures how much consumption increases with increase in income. Yes consumption may equally change with income if MPC is 1 i.e you fully spend your marginal income and save nothing or take loan and spend more than your income.
Hello Johni
You can see what is happening in England.
Bank of England cut interest rates, Increased money supply to fund economic add to financial institutions and industry. Government also
Helped many financial institutions to save them.
Like all world English policy makers also think low interest rate would decrease the alternative cost of money. Funds would be available at low rate and this would encourage investments and will help GDP to grow at better rate. People will spend more and this will create more demand and more employment.
Before recession rates were more than 5% now just half percentage.
One bad effect of this is very high rate of inflation.
describe the role that price plays in directing the smooth functioning of the economy
Hello microcoders
Energy is very crucial product. Main purpose of companies to promote energy saving equipments is welfare not just commercial .
Electricity generation capacity of world is very limited. Actually this product is very different from other consumption items.
There is no competitive market for electricity. Unlike mobile, tv or steel plants , governments electrical companies play a very big role in electricity sector. Different government regulators control prices of electricity. So it is not surprise if there are energy saving efforts in your country as it is in all world.
Can you do some GCSE related topics and/or revision guides please?
Thanks for the help, I appreciate it
“The impact of pricing policy for profit”
can help the in something somewhere, literature …, anything
to build mathematic model
EXPLAIN THE CONCEPT OF A PRODUCT FUNCTION . DISTINGUISH BETWEEN THE LAW OF VARIABLE PROPOTIONS AND THE LAW OF RETURNS TO SCALE
how the term of trade affects the current account ?
Hello Kuda
Production function explains relationship between input and output of production. In production function we examine different inputs for minimize the cost for same level of productions. There are variable proposition and return to scale under production function.
Law of variable proportion is study of relations between input and output when one source (factor) varies and others remain stable.
We examine effect on productivity when one quantity of one factor increased and other remains same. In general , law predicts if a factor of production is increased and other factors remain stable, after one point its marginal productivity starts decreasing.
On the other hand return to scale is study of inputs and outputs when portion of factors is not changed, their level of production is increased. This show when production level is increased from certain level cost of production starts decreasing.
Explain why a person who normally is a light eater at a standard restaurant may become somewhat of a glutton in an all-you-can-eat for a single price buffet-style restaurant. Use economic principles in your analysis.