Questions from General Economics

Q: What factors could explain why some countries have a higher multiplier than

What factors could explain why some countries have a higher multiplier than others?

Q: Would a firm want demand for its brand to be more or

Would a firm want demand for its brand to be more or less elastic? How might a firm achieve this?

Q: Why does a booming economy not carry on booming indefinitely. Why

Why does a booming economy not carry on booming indefinitely. Why does an economy in recession pull out of that recession?

Q: For what possible reasons may one country experience a persistently faster rate

For what possible reasons may one country experience a persistently faster rate of economic growth than another?

Q: Imagine that the banking system receives additional deposits of £100 million

Imagine that the banking system receives additional deposits of £100 million and that all the individual banks wish to retain their current liquidity ratio of 20 per cent. (a) How much will banks choo...

Q: ‘The existence of a budget deficit or a budget surplus tells

‘The existence of a budget deficit or a budget surplus tells us very little about the stance of fiscal policy.’ Explain and discuss.

Q: Define demand-side and supply-side policies. Are there

Define demand-side and supply-side policies. Are there any ways in which such policies are incompatible?

Q: What types of tax cuts are likely to create the greatest

What types of tax cuts are likely to create the greatest (a) incentives, (b) disincentives to effort?

Q: Imagine that you are asked to advise the government on ways of

Imagine that you are asked to advise the government on ways of increasing investment in the economy. What advice would you give and why?

Q: In what ways can interventionist industrial policy work with the market,

In what ways can interventionist industrial policy work with the market, rather than against it? What are the arguments for and against such policy?