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1. Can someone help me out with this question?:

Evaluate alternative measures which can be used to reduce unemployment (25 marks)

thanks
2. (Original post by lilGem)
Can someone help me out with this question?:

Evaluate alternative measures which can be used to reduce unemployment (25 marks)

thanks
Perhaps state why unemployment is bad.
Initially assume that Employment and Growth go hand in hand, so any policy to increase growth will also increase employment (or decrease employment, whatever). This is stuff like increasing Government spending (CIG XM), supply side policies like Research and development.
Also you could talk about cutting benefits (but the problems with that).
Also you may want to challenge the link between employment and growth, and whether increasing employment is beneficial (talk about position on the AS curve and also talk about the philips curve)
3. Hello I am new to this forum and I am hoping it will be very helpful and I am also hoping eventually I will be able to help others. Took economics thinking it was a math class basically. Seems to be more of a essay class. I am slowly learning the way to approach the questions as an economist. Had a little trouble at first but seems to be sinking in.

My questions are:

How does the concept of economics of scale helps shed light on each of the following?

a)car pooling
b)farming
c)a huge refinery

any help will be greatly appreciated, just not grasping what they are asking, not sure how to answer. Thanks for looking and hopefully thanks for helping.
4. Can anyone help me with this question because i dont know how to answer it please?

Increased levels of sea- borne transport bring increased levels of negative externalities. Discuss two possible solutions to the market faileure arising from negative externalities.

help me please.....
5. Price Elasticity of Demand.

Can this ever be positive. According to wikipedia its nearly always negative but my teacher said its ALWAYS negative because one or the other (price or demand) will always have a negative, giving a negative answer. I know we usually ignore the negative sign then look at if its <1 =1 or >1 so the negative is irrelevant but I still need to know if products can have positive PED.

Also, if you can have positive PED, when is this the case. Can you name any examples. ie when does an increase in price not cause a decrease in demand.

Hope I have worded the question well enough for you to understand. Thanks in advance
6. Hey, if you can help would be appreciated.
Having a mind blank,

What is the macroeconomic effect of a change in the value of the pound?

Have already discussed employment and trade balance but need a couple more points for my essay.
Thanks
7. (Original post by nasira372)
Price Elasticity of Demand.

Can this ever be positive. According to wikipedia its nearly always negative but my teacher said its ALWAYS negative because one or the other (price or demand) will always have a negative, giving a negative answer. I know we usually ignore the negative sign then look at if its <1 =1 or >1 so the negative is irrelevant but I still need to know if products can have positive PED.

Also, if you can have positive PED, when is this the case. Can you name any examples. ie when does an increase in price not cause a decrease in demand.

Hope I have worded the question well enough for you to understand. Thanks in advance
Anyone
8. (Original post by nasira372)
Anyone
It's been literally ages since I did elasticities, but surely the equivalent question would be "can you have an upward sloping demand curve?". I think the typical examples are Giffen goods (something to do with the income effect, look it up) and goods with 'snob value' (think art here). So in short the answer would be yes, but it is rare and we usually assume (quite safely) that it won't be the case.
9. Why does the Bank of England set interest rates artificially and not let the free market decide? And how much influence does the Bank of England really have on commercial rates, so how does Mervyn King's decisions on rates affect banks' lending and saving rates?
10. Hey all,

I'm struggling to understand when the IS curve may become more interest inelastic. I'm guessing that it would if the J/R curve would become more inelastic, but I'm struggling to figure out when that would occur either.

The only thing I can think of is to do with liquidity and that if people had a lot of their wealth in long-term loans/bonds/shares whatever, they wouldn't be able to adapt to a change in the interest rate as quickly.

Any thoughts?
11. Hey everyone, can someone help me out?

What is the real difference between RPI and CPI and what typical exam question might I expect with regards to the two measures?
12. CPI - using "basket" of consumer goods
RPI - "basket" of goods including mortgages (so changes in the interest rate will be reflected in RPI but not CPI)

Different goods are also weighted differently in each of CPI and RPI.
http://www.economicshelp.org/blog/in...-rpix-and-cpi/

You could be asked to analyse data (compare the two on a graph) or you could be asked any question about inflation and what its economic significance i guess

(Original post by tripleeagle)
Why does the Bank of England set interest rates artificially and not let the free market decide? And how much influence does the Bank of England really have on commercial rates, so how does Mervyn King's decisions on rates affect banks' lending and saving rates?
the economic cycle naturally has positive and negative output gaps. the aim of monetary policy is to reduce the size of these gaps - to stabilise the economy more so that each recession is not like the great depression (as an extreme example) and each boom does not get out of control. if we let the free market correct itself then recessions could be longer than necessary and more extreme in magnitude than necessary.
13. (Original post by sandypandy)
the economic cycle naturally has positive and negative output gaps. the aim of monetary policy is to reduce the size of these gaps - to stabilise the economy more so that each recession is not like the great depression (as an extreme example) and each boom does not get out of control. if we let the free market correct itself then recessions could be longer than necessary and more extreme in magnitude than necessary.
Thanks for your answer!
14. Hi everyone, I could do with some help:

I am supposed to model UK vehicle miles traveled on fuel prices and other variables (time series). How do I decide whether to use a linear, log-linear, linear-log or double-log model? Also, under which circumstances would I include a lagged value of VMT in my equation as one of the explanatory variables?

Thanks for helping.
15. Hi, was wondering if anyone could help at all with this?

Australia is land abundant; India is labour abundant. Wheat is land intensive relative to textiles.
Graphically demonstrate the pre- and post-trade equilibria between these two countries. Find and
label the trade triangles for each.

Would be very much appreciated!
16. I am not very sure of those questions below, and I don't know anyone in class so I have noone anyone to ask...

How do I do:

1) Consider the following two individual inverse demand curves for private good Y: Qd1 = 20 -P, Qd2= 45 -3P. At what price does Individual 2 start demanding more quantity of Y than Individual 1?

2) If the demand for 100ml bottles of perfume is given by Qd = 200-2P and Supply is given by Qs = P/2 - 15, what is the own price elasticity of demand at equilibrium in absolute terms?

3) If the price of train tickets go up 5 percent causing the quantity of bus rides to go up by 3 percent, the cross price elasticity for the following goods is______________. The goods are _______________.

4) Good X has the following demand function Qd = 50-(1/2)P. Which one of the following represents an increase in demand for good X?

a) Qd = 20 - 2P
b) Qd = 40 - 2P
c) Qd = 40 -(1/2)P
d) Qd = 25 -(1/4)P
e) None of the above

*** Please quote me if you respond.
17. (Original post by PopABottle)
I am not very sure of those questions below, and I don't know anyone in class so I have noone anyone to ask...

How do I do:

1) Consider the following two individual inverse demand curves for private good Y: Qd1 = 20 -P, Qd2= 45 -3P. At what price does Individual 2 start demanding more quantity of Y than Individual 1?

2) If the demand for 100ml bottles of perfume is given by Qd = 200-2P and Supply is given by Qs = P/2 - 15, what is the own price elasticity of demand at equilibrium in absolute terms?

3) If the price of train tickets go up 5 percent causing the quantity of bus rides to go up by 3 percent, the cross price elasticity for the following goods is______________. The goods are _______________.

4) Good X has the following demand function Qd = 50-(1/2)P. Which one of the following represents an increase in demand for good X?

a) Qd = 20 - 2P
b) Qd = 40 - 2P
c) Qd = 40 -(1/2)P
d) Qd = 25 -(1/4)P
e) None of the above

*** Please quote me if you respond.
1) Surely just consider the intersection of the curves.

2) Looks like just use the definition of own PED and evaluate at the equilibrium (where supply equals demand).

3) Again just use the definition of cross price elasticity of demand. Second part is obvious (and will follow anyway).

4) Use the definition of an increase in demand, which I would take to mean an increase in Qd at every price.
18. (Original post by Marie203)
Hey, if you can help would be appreciated.
Having a mind blank,

What is the macroeconomic effect of a change in the value of the pound?

Have already discussed employment and trade balance but need a couple more points for my essay.
Thanks
You can talk about change in international competitiveness-lower pound=more, higher pound=less, evaluate this with the increasing competition from countries like India and China.
You can talk about inflation.
You can also talk about the transmission mechanism.
19. I was just wondering what are the pros and cons of free trade in terms of social/welfare economics? What would be a better alternative?
20. (Original post by alex_hk90)
1) Surely just consider the intersection of the curves.

2) Looks like just use the definition of own PED and evaluate at the equilibrium (where supply equals demand).

3) Again just use the definition of cross price elasticity of demand. Second part is obvious (and will follow anyway).

4) Use the definition of an increase in demand, which I would take to mean an increase in Qd at every price.
I am not sure how to make the curves/how to use the equations. That is the real question, I am not sure how to use the equations.

Also another question is: Bob's income increases from \$1200 per week to \$1250 per week. At the same time, the number of bus trips that Bob takes decreases from 10 to 8 per week. Assuming that the price of bus trips has not changed:

A ) Bob's income elasticity for bus trips is positive and bus trips are a normal good
b) Bob's income elasticity for bus trips is positive and bus trips are an inferior good
c) Bob's income elasticity for bus trips is negative and bus trips are an inferior good
d) Bob's income elasticity for bus trips is negative and bus trips are a normal good
e) Bob's own price elasticity of demand for bus trips is inelastic

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