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.
Related
Steve V
We just study economic environment in economics not psychological. Yes IQ is related with economic development , but other things like banking laws etc are more important. It is very difficult to determine direct relation between development of IQ and economic development practically. Actually everything like political development , economic development, technical development etc all are related with each other only because it is human being who make is starting and final factor of these things. For example, countries like Germany, America etc are not just ahead in economic development against countries like Pakistan, Iran, Nepal etc, They are also advance in political , freedom, technology, sports etc.
We can not give much weightage to such issues in economics.
Devi Chand ji
If Indian govt get black money deposited in foreign banks it will be good for Indian economy. It will create supply side and make economic cycle wide.
But note one thing this will not make India America or France. It will not have any big effect on economy.
Main problems of India lie in high population, low development in human resources, corruption etc. Even if govt receive this money, govt can waste this money by improper using as it generally does.
Taxation can be used to correct market failures, but taxes can have adverse effects themselves. One of such effect is the deadweight loss that results when taxes are imposed on goods and services.
Assume that the market for Good A is in equilibrium, both consumer and producer surplus are maximised and there is no deadweight loss. An indirect tax is imposed and this policy is likely to cause deadweight losses and changes in producer and consumer surplus.
Based on the above scenario/evidence, you are required to illustrate diagrammatically and the use of appropriate discussion to address the new equilibrium point and all the changes which are likely to occur.
Discuss whether monopoly is always an undesirable form of market structure?
Hi. I would like to know what are the problems associated with declining terms of trade?
May i know if my following point is correct:
– it would mean a decrease in demand of exports (consumer demand). Hence, pushing down the price of the export.
Are there any other points? Thanks in advance!
Hi. I would also like to know what are the effects of monetary union on
(i) the rate of inflation
(ii) unemployment
(iii) balance of payments
(iv) economic growth
This is my answer (i’m not sure if it’s correct though)
(ii) unemployment: decrease in unemployment because there is an increase in FDI (due to a reduction in transaction costs and increased stability of the ex rate). FDI creates jobs.
(iv) economic growth. increase in trade creation among the members of the monetary union. and due to law of comparative advantage.
Again, thanks in advance!
Diminishing returns do not necessary mean economic inefficiency. Explain with reference to the theory of production using relevant diagrams. PLEASE I NEED THE ANSWER TO PASS MY TEST TOMORROW.
discuss the various form of money used in the past vis-a-vis properties and the issue of government revenues-revenues
causes and consequences of inequality and poverty in developed and developing countries?? and the extent to which inequality is an essential ingredient of capitalism
The United States of America has not had a trade surplus since 1975. We have not had a trade surplus with Japan since April, 1976. Every year since 1983 we have been in deficit with Europe. The last time America had a trade surplus with both Russia and China was a very brief period during the Cold War. We have been running ever increasing trade deficits with South Korea since 1998. Our 1993 trade surplus with Mexico is now a 100 billion a year trade deficit. In the 1970’s, 80’s, and much of the 1990’s our trade deficit was never more than one half of 1% of GDP. We now find ourselves with a trade deficit of between 5% and 7% of GDP depending on how you count. From 2002 to 2007 the trade deficit exploded. The only reason unemployment stayed well under 6% is because of the credit bubble. 63% of all jobs created from 2000 to 2006 were housing or credit bubble related. We did not feel the destructive affects of the trade deficit because of this credit bubble. I have concluded from work I have been doing that America will never get unemployment even under 7% with a trade deficit of over 3% of GDP, without a major credit bubble. The U.S. Economy has actually stopped functioning like a real economy. We literally need a credit bubble to function. America must move from the ideology of free trade to the economic policy of balanced trade. Until this structural shift takes place you can bank on the American economy being the laughing stock of the world economy.
Regards,
Ames F. Tiedeman
Dripping Springs, Texas
i need economic exam 2011
Hello Ibrahim
Generally it is believed capitalism and inequality is responsible for poverty . It is true . Poverty is result of low annual income. Due to high level of inequality, there is unequal distribution of money , as result some get more and some get nothing . Another main cause of poverty is low devolvement. In a welfare democracy capitalism may exit without any poverty . Actually pure capitalism does not exist in any country as in CANADA, ENGLAND ,USA there are high level of income tax , Govt spent this money for welfare of poor people. But in Latin America govt are corrupt and result of capitalism is very destructive. Rising population is also a big cause of extreme poverty.
Hello Ames
Yes I am agree. USA is feeling big economic loss due to trade deficit. This deficit is cutting local jobs and sending it to other countries specially China and India. Illegal migration from Mexico is also a big issue. Govt should think about it. Canadian economy is much balanced than American economy.
May be I am stupid to ask this question. I don’t know fundamentals in economics as my education is in engineering and work in IT filed. But since 1 year I has a question on economics which is teasing my brain. “Where and who creates the money?” Looks like Newton’s “Law of conservation of energy : Energy never be created nor destroyed”.
To be more clear, I will explain with 2 examples.
First case :
I work in a big retail company in USA and get paid bi weekly. How my company is getting money?
Retail company makes profit from some % of the money they got from the customer after selling an item.
This customer gets money as a salary or as profit if he do business and so. That means money is just rotating. Never created.
Second case :
Let us say I have some $70K property (as of today) which includes bank balance+car cost+
cost of house holds etc. Like this, every one in USA has some property. If I add all this individual properties of all people or families in USA, let us say it comes to an ‘X’ dollars as on today. If we calculate the same total amount on a day for 20 years back, it will definitely be less. So money is created as the time goes on.
The two examples are conflicting. Money is never created in 1st case, Money is created in 2nd case. Which is right and how it suffice with other example? Can any one answer?