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    Well, GDP per capita is GDP per person. If you've got a high pop growth rate, you're going to have a large population (eventually), and hence a lower GDP per capita than a country with the same total GDP but lower population growth rate/lower population.

    Typically, countries with high poverty have low education and health education, so little family planning, contraceptives etc -> pop growth rates. Children might also be used as a form of pension, to provide for the parents in their old age, due to the absence of insurance markets.
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    I've got a question.
    Most of the preferences we use in class exhibit convexity.
    What does it imply about the shape of indifference curves? Explain, in
    words, what this implies about consumer preferences, think of an example
    where this might be a bad assumption and try to come up with a utility
    function that captures your idea in the example.
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    The IC is convex and people prefer mixtures of goods.
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    ive had this question for a long time, its not really related to any of the work im doing but.

    Is the credit crunch global? Will all markets be affected badly, which markets will be resilient to the credit crunch? (im assuming the low budget supermarkets but is that it?) which countries are resilient to the credit crunch?
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    The credit crunch is a massive thing, and I in no way have much knowledge about it, but from what I gather its alot to do with sub-prime lending by banks which has caused them to have high liability borrowers. To make sure they have some liquidity they sell these contracts onto other investors across the world. This gets circulated around but there is no value to what people are buying. Suddenly everyone realises there is no value to what they are buying, and everybody realises they are much poorer then they thought. Banks are bust because the collateral they had on offer is useless and they have lent more then their capacity.

    Markets with large banks or those who did a lot of sub-prime lending are most hardly hit, and then the economies highly connected with these economies. So America is badly hit and countries that rely heavily on America for business have been greatly hit as well, such as the European countries. The mainland isn't in a recession as of yet, though the recent rate cuts are indicating they are worried about their economic well-being.

    Its a very complex phenomenon though, bear in mind that this will take a fair bit of time before it corrects itself.
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    is there anyone can help me with this question. it's data question in page 330 - economics Alain Anderton fourth edition.
    it says: an 8500 TEUs vessel sets sail with containers whose volume is only 5000 TEUs. another vessel, whose size is 5000 TEUs, sets sail from the same port to the same destination carrying a full load of 5000 TEUs. using long run average cost envelope diagram, compare the possible average costs of the 2 vessels for the journey

    this questions is in " economies of scale"
    please help me.
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    please cud u help me with this questions.am a postgrad student.why is market structure important for business conduct? 3000 words.
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    :no:
    (Original post by emoticons)
    please cud u help me with this questions.am a postgrad student.why is market structure important for business conduct? 3000 words.
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    (Original post by emoticons)
    please cud u help me with this questions.am a postgrad student.why is market structure important for business conduct? 3000 words.

    Because it underlies everything, if the firm can't make a profit in the marketplace it goes out of business. For example is the industry becomes to concentrated, prices may be kept higher to enable weaker or smaller firms to survive, therefore avoiding any anti-competitive legal action on the big firms.

    You'll get 3000 words from that easy. Post-grad? Don't you cover something specific, that's a very general economics question.
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    Quick query, how might unemployment affect income inequality? Other than the obvious reason that they'll be more people earning no income.
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    (Original post by Gascoigne)
    Quick query, how might unemployment affect income inequality? Other than the obvious reason that they'll be more people earning no income.

    get doing some serious maths/econ, not this ****.
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    a) Explain how a Philiips Curve arises
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    (Original post by potterotter)
    a) Explain how a Philiips Curve arises
    i think it's applicable when you've fixed or adaptive expectations.
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    Or rational expectations and sticky wages/prices
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    Can u see my attachment and then see wether im right please.
    Would i draw a demand curve with a line going to the right to show an increase in demand? but it also says there is a increase in price and we were told if this happens then there would be less demand so im confused. Then would i draw a dis ecquilibrium graph because demand demand is greater than supply?
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    (Original post by Happy Kid)
    Can u see my attachment and then see wether im right please.
    Would i draw a demand curve with a line going to the right to show an increase in demand? but it also says there is a increase in price and we were told if this happens then there would be less demand so im confused. Then would i draw a dis ecquilibrium graph because demand demand is greater than supply?
    I'm not entirely sure but I think you would have a large shift in demand and a small shift in supply, resulting in a much higher equilibrium price.
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    Discuss the likely effect on demand for both Playstation consoles and games if there were a decline in real incomes in their major markets such as the UK, USA and Japan.
    The Question is 15 marks... It's due in for tomorrow, can someone help me out please? I think it's to do with inferior goods or something related to that.
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    (Original post by htn)
    Discuss the likely effect on demand for both Playstation consoles and games if there were a decline in real incomes in their major markets such as the UK, USA and Japan.
    The Question is 15 marks... It's due in for tomorrow, can someone help me out please? I think it's to do with inferior goods or something related to that.
    Looks a bit simple for a 15 mark question, and whether or not it's to do with inferior goods will depend on when the question was originally asked (Playstation consoles are inferior to PS2/PS3 now but possibly not for that exam paper).

    If it is a normal good then the basic idea would be an inwards shift of the demand curve for the consoles, resulting in a lower quantity and price (draw the supply and demand diagram, marking the equilibrium price and quantity before and after the decline in real incomes). The extent of the shift will depend on the income elasticity of demand (YED) for the consoles. If it is an inferior good then the demand curve would shift outwards and YED would be negative.

    As for the Playstation games, I suppose you could say that they complement the consoles so would also experience a fall in demand as the demand for the consoles fell (or the demand for both rises if it is an inferior good). You could also possibly mention something about buying games for a old console being a substitute for buying a new console, but I'm not sure how much effect that would have. One last thing, although the demand for new games is likely to fall, the demand for used games might rise (these could be seen as inferior goods).

    Hopefully there's something useful in that.
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    (Original post by htn)
    Discuss the likely effect on demand for both Playstation consoles and games if there were a decline in real incomes in their major markets such as the UK, USA and Japan.
    The Question is 15 marks... It's due in for tomorrow, can someone help me out please? I think it's to do with inferior goods or something related to that.

    Fall in real incomes (Y) causes demand to decrease as relative cost per unit increases so less people can afford it because it's a luxury good (in economics terms at least :p:). The demand for games will also decrease due to derived demand. As there is decline in Y in manufacturing countries, a fall in sales may lead to the companies tryin to reduce their economic rent (in terms of Factors of production) and hence people may be made unemployed, hence further decreasing real incomes and continuing in a spiral, depending on the extent of the fall in real incomes and the price elasticity of demand for the games consoles. As most households already own a PS2 the effect on consoles sales will be less profound, although further sales will decrease (such as PS3), but the effect on games sales depends on the differing individual PED's of each game, especially as it does not comprise a large proportion of one's income- the effect will be more felt in poorer households. In the LR however, games prices will have to fall to meet the XS, as they always do, and an equilibrium will be reached. Exploitation of the market for pre-owned game is also a factor.
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    Thanks for the help guys.
 
 
 
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