You are welcome to ask questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.
I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.
- Please don’t ask me to do your coursework / assignment e.t.c.
- Please don’t ask any maths calculations.
- The question and answer will be published here where everyone can see it (including your teacher).
- I aim to try and simplify economics; as a rough guide I would aim at an understanding similar to a good British A Level student.
- I am looking to explain economic principles / ideas/ recent developments in economics.
- I will answer as a new post, if you leave email address, I’ll usually send quick email. 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
what is the author of this website or the founder.
https://www.economicshelp.org/blog/about
in this age of technology, where every manpower is being replaced with machine… does the wage-price inflation theory still hold any relevance?
In this era, Inflation had gotten really high specially in countries like Pakistan. Hows will the Inflation level go down ? or will it even let the country develop ?
Once inflation rises it keeps on going.
Abdulla g Salam balekum
Do not relate inflation in Pakistaan with development of Pakistaan. Actually in practically inflation is not only responsible for development etc.
In reality Inflation itself is a side effect of Bad economic policies in Pakistan & Poor economic environment in country .
Like Inflation, low economic development itself a product of bad economic policies and poor economic environment . So you can not blame inflation for this as both inflation and low development are brother , their father bad economic policies is responsible.
According to the Keynesian cross model what is the impact on the UK macro economy of the Bank of England’s decision to keep interest rates at 0.5%? Such a policy can spur economic growth in the UK economy?
Simply low interest rate will help in increasing business cycle and increase economic growth
Accoreding to the Keynesian Cross model how rising consumer credit can stimulate an expansion of the US macro economy.?
what are some economic advancements that has contributed to the growth of Public Relations?
what is company tax
Tax which is payable by companies which are register under this act
Hi,
Printing money is not a solution if the production of agri+goods+services don’t increase but to install new capacity to increase production, why can’t a government print money?
After all money is just a medium to enable transactions in the economy…isn’t it?
Let us say there are USD 100 million in an economy based on Agri + Manufacturing + Services. The govt. intends to develops 10 islands into top tourist destinations in 3 years. So the economic output will be now Agri+Manufacturing+Services+Tourism.
Don’t you think Govt. will inject extra money in the system if the prices of all the other things don’t decrease…?
So a simple question as above why don’t govt. increase the installed capacity where demand far outstrips the supply just by printing more money.
Many thanks
PK jindal g every problem have different solution.
No doubt govt has problem of development etc
But some time govt also have problem to finance for its needs. Govt can take loans for this but it is enough
So govt need to print money as it is very easy method to finance.
Basically i just do not understand how you can calculate the Price elasticity of demand and supply without the quantity. However the question is as follows:
In 2009 and 2010 the US government instituted a program where all first-time homebuyers received an $8,000 tax credit upon the purchase of a new house. In April 2010, just prior to the credit’s expiration, sales rose 7.6% and the median US home price rose 4% to from $167,000 to $174.000. Assume that all buyers received the $8,000 subsidy.
Assuming that all buyers received the credit, estimate the own price elasticity of demand and own price elasticity of supply
Is giffen good the same as luxury?
i want detailed information on constituents of organized sector??? plz help cant find much…
Hello!
Maybe you will have a chance to consider this question, it is really bugging me. It’s from an US perspective, but I think it would be valid internationally.
I came across the following blurb in an article on Politico…
“Goldman Sachs economists took a measured stance in a recent note, arguing that ‘while a failure to raise the debt limit should not have implications for the Treasury’s ability to make interest payments or to redeem existing securities, it could lead to a sharp reduction in spending.’ ”
This raises a question in general about the relationship between government borrowing, government spending, and the stimulus effect such activities may have.
If the US Government, for example, borrowed $1 Trillion less, wouldn’t this money just get spent somewhere else? That is, if government borrowing is actually borrowing, and not printing/creating money by another name, doesn’t the money have to already exist? Wasn’t it going to be invested somewhere?
I really don’t have a political agenda on this question, I just want to understand what is actually happening. You have a separate post that does a good job at explaining why government borrowing is NOT the same as printing money, and the inflationary downsides of printing money, but I’m having a hard time seeing how, for example, government spending could be consider a stimulus to the economy if it is all borrowed money in the first place.
As an aside, I can see how borrowing money from, say, China, and then spending it in the US could stimulate the US economy, but my understanding is that the only about half of the US debt is held by non US interests.
Also, I can see that a lot of US debt is held by the US Federal Reserve, but unless the Federal Reserve is printing money, they have to get it from somewhere too.
I suspect that this is ultimately related to fractional reserve banking, and that by borrowing money the US Government is, in a way, creating money, because the people we are borrowing from don’t technically have it in their vaults, and that when we pay off the government debt this is, in essence, taking money out of circulation. But the link is hazy.
Thanks for your wonderful blog.
In reply to my question, above…I did locate your article here…
https://www.economicshelp.org/blog/1368/economics/keynesian-stimulus/
This goes a long way to explaining the stimulus value of government borrrowing. The idea is that, in a recession, there is literally a bunch of money sitting in bank vaults doing nothing at all. The government takes that money and spreads it around, keeping it moving.
So let me rephrase my question above. In a non-recession situation, if a government reduces it’s borrowing and thus it’s spending, how can that have a depressing effect on the economy? Wouldn’t that money be either be loaned to someone else or spent to on goods and services by the people who have it?
To increase its labour force from 50 to 51 workers, a firm has to increase the daily wage rate from $600 to $610. What is the marginal cost of labour per day?
A $10 B $510 C $610 D $1110
I’m struggling with the answer. I know it’s $1110, but isn’t marginal cost just
Change in price / change in unit of labour?
That would make it $10 (as the marginal cost)
However, if you times 10 by the new unit cost, if the $10 isn’t the answer, that would make it $510. Or you may think that the new unit cost is $610 itself! However, why is it $1110?
Hello! I was just wondering in the midst of the European crisis when all economically strong countries have been downgraded how can Germany show a surplus? I mean I can understand that German exports have always been their main source of income , but with all the world exports shifting to China and India wouldn’t we expect the German exports to decline? Thanks!
What economic question(s) does this case require the town to ask? (2 points)
2. List the possible resources that the town would need to construct and maintain the park. (2
points)
3. What town resource(s) are scarce? (1 points)
4. Who will be the consumers using this public good? (2 points)
5. What is the opportunity cost of building this park? Explain. (5 points)
6. Identify at least one pro and one con for each of the following options: (5 points)
a. leaving the land undeveloped
b. selling the land to real estate developers to build homes
7. What, if any, market failures might exist in this town? Explain. (3 points)
8. Create a chart that identifies the positive and negative externalities of building the
park. Explain the effect of each externality. (Hint: You may use the charts on pp.
64−65 as a guideline.) (6 points)
9. How could the town government counteract the negative externalities? (3 points)
10. Based on your studies of Unit 1, write a persuasive argument for or against the
construction of the dog park. Provide a minimum of three supporting details and elaborate on
each to support your position. Your answer should include economic
terms when appropriate and should be written in paragraph form. (16 points)