Questions from General Economics


Q: Why may capital inflows damage the international competitiveness of a country's businesses

Why may capital inflows damage the international competitiveness of a country's businesses?

See Answer

Q: What adverse effects on the domestic economy may follow from (

What adverse effects on the domestic economy may follow from (a) a depreciation of the exchange rate and (b) an appreciation of the exchange rate?

See Answer

Q: What are the causes of exchange-rate volatility? Have these

What are the causes of exchange-rate volatility? Have these problems become greater or lesser in the past 15 years? Explain why.

See Answer

Q: Did the exchange rate difficulties experienced by countries under the ERM strengthen

Did the exchange rate difficulties experienced by countries under the ERM strengthen or weaken the arguments for progressing to a single European currency?

See Answer

Q: By what means would a depressed country in an economic union with

By what means would a depressed country in an economic union with a single currency be able to recover? Would the market provide a satisfactory solution or would (union) government intervention be nec...

See Answer

Q: The price of cod is much higher today than it was 30

The price of cod is much higher today than it was 30 years ago. Using demand and supply diagrams, explain why this should be so.

See Answer

Q: Referring to Table 2.1, assume that there are 200

Referring to Table 2.1, assume that there are 200 consumers in the market. Of these, 100 have schedules like Tracey’s and 100 have schedules like Darren’s. What would be the total market demand schedu...

See Answer

Q: Why are insurance companies unwilling to provide insurance against losses arising from

Why are insurance companies unwilling to provide insurance against losses arising from war or ‘civil insurrection’? Name some other events where it would be impossible to obtain insurance.

See Answer

Q: How might the structure of a multinational differ depending on whether its

How might the structure of a multinational differ depending on whether its objective of being multinational is to reduce costs or to grow?

See Answer

Q: Assume that the multiplier has a value of 3. Now

Assume that the multiplier has a value of 3. Now assume that the government decides to increase aggregate demand in an attempt to reduce unemployment. It raises government expenditure by £100 million...

See Answer