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
- 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.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- Don’t ask me to do your coursework / assignment e.t.c. The answer will be published here where your teacher can see it.
- My speciality is economics for British A Level standard.
- I don’t answer university questions or maths calculations
- I am looking to explain economic principles / ideas/ recent developments in economics.
- 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.
Related
In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to
Export or Consumption
My analysis is If you consider national accounts it will come under invisible export, but in terms of economy it will come under consumption, plz answer my question
Srinu ji
It is very simple. It is different case than energy. Energy can take form of mass as energy and mass are same according to fundamentals of physics. In economics generally we believe money is created. We create money. Paper does not make currency money, it is storage power of particular legal paper which make it money.
Money is nothing more than purchasing power of any unit.
We create this purchasing power. If all united states stop work, storage power of united states dollar would definitely diminish.
Yes if you want to take money as energy ‘s definition you can take.
After all money is also created from resources which themselves are at some level form of money. Labor, land, minerals etc all create value and all these sources also have value .
Thanks,
Follow me on face book
[email protected]
Hi sampathgunukula
It is definitely tourism sector. It is one type of export where we provide our service or product to people of foreign countries.
It will help consumption industry of country.
Raj,
Thanks for your reply. I agree that money is created. But my question is where and how it is created? Let me put my question in another way. Govt. prints currency right. When they print currency at what amount and how they distribute that currency? I think currency is one form of money. Thanks.
-Srinu
Brother Sinu
First of all I will tell you what makes anything money. It is just a property which makes anything money. This property is that we psychologically recognize some quantities as money for example gold, currency etc.
We psychologically starts to believe that these units store value. So it is purchasing power of any unit which makes it money. Some precious metals like gold attracts human naturally and some legally like currency.
Purchasing power or value which currency stores , depend on production of services or goods of that particular country . Means to say all value is goods and services of that particular country and govt makes currency notes for storing that value.
Any single country (except European countries etc) can print as much currency as it like. But this does not make it rich. Even Bangladesh can print Bangla currency which would be equal to 100billion dollar at current exchange rates . But this will not even make 1dollar rich to Bangadesh. It is Bangladesh ‘s production which will make country rich. If it print more currency value which currency stores will decrease.
Govt prints currency to fulfill exchange related needs of particular country.
It has no need convert all money into currency. Practically most money of govt is in form of public deposit certificates etc. Only very little part is converted into currency.
Govt generally increase money supply in form of budget deficits.
Govt create money to fulfill the need of budget.
Thanks
what would happen if india be the only exporter of gold?
Hi!
I have recently read an article stating that “a country has only four options for getting out of a financial crisis: devalue, inflate, default, or deflate”… Would you be so kind to explain what this options comprehend??
Thanks in advance
Sneha Singh
I think if quantity of export in the world remains same i.e India exports same quantity which today is exported , rate would be not much different. Indian economy will become rich, it depends on how much gold India exports.
Naturally India would get much foreign currency and trade deficit would decrease. This can make Indian Rupees stronger.
Alex
I think these four seems more related with debt problems.
Devalue of own currency can decrease internal debt of govt. If currency is like dollar devalue of currency can also help to decrease foreign debt. Default is generally considered helpful mostly in foreign debt.
Dear Raj,
Thank you very much for all your time and effort on replying to me. I appreciate. After reading your reply, I got some “qualitative understanding”. But I am trying to understanding “quantitatively”. After I googled about printing currency, I read an article and found that Govt. will electronically increases the balance in the account of an investor (bank) and the investor owes the Govt the same amount with interest. This is called “Treasury bond”. This looks like 100% scam. Govt has not transferred anything to the investor like Gold or property or any thing quantitatively. If this not scam, then if a computer hacker hacks bank computers and increase balance in his account is not a scam too. Am I missing something here?
Srinu ji
There is nothing wrong in bonds. Currency is paper, it is govt ‘s promise which convert paper into currency. If govt makes promise in form of deposit certificate on paper or electronically , there is nothing wrong. YOU can compare both with shares of companies. Many years ago shares were available in form of paper. But now these are available in electronic form stored in computers. Yet they represents ownership in company. So brother there is nothing wrong in govt bonds. You can exchange them with currency after certain period.It does not matter they are in paper or digitally stored in computers. Because this does not change there basic character i.e bond holder will receive currency on behalf of these certificates. So you can call them money.
thanks
you can contact me on face book
[email protected]
hi, I would like to know what exactly are the issues India is facing with regard to allowing FDI in Multi- Brand retail….Many of our dveloping counterparts have allowed it in their countries, then why not us??
Hi Astha ji
Many groups in India dislike FDI in retail sector. Yes many developing countries already allowed it.
They believe that permission of more FDI in retail sector will damage local retail sector. This will finish business of small retailers . Because of foreign investment, more money will be available to open new shopping malls. They will give strong competition to local shops and local shops will be closed. More people will be unemployment. They believe in India many millions people earn their bred with shops and if they oppose FDI in retail sector , people will vote them.
An inernet or web trader must inter alia display the full name and legal status of the enterprise on its webite. Briefly discuss the other information that a web trader must display on its website