Questions from General Economics

Q: To what extent are the arguments for countries specializing and then trading

To what extent are the arguments for countries specializing and then trading with each other the same as those for individuals specializing in doing the jobs to which they are relatively well suited?...

Q: It is often argued that if the market fails to develop infant

It is often argued that if the market fails to develop infant industries, then this is an argument for government intervention, but not necessarily in the form of restricting imports. In what other wa...

Q: Imagine that you are working for an airline attempting to forecast demand

Imagine that you are working for an airline attempting to forecast demand for seats over the next two or three years. What, do you think, could be used as leading indicators?

Q: Will a general item of expenditure like food or clothing have a

Will a general item of expenditure like food or clothing have a price elastic or inelastic demand? Explain.

Q: Explain which of these two pairs are likely to have the highest

Explain which of these two pairs are likely to have the highest cross-price elasticity of demand: two brands of coffee, or coffee and tea?

Q: Since advertising increases a firm’s costs, will prices necessarily be lower

Since advertising increases a firm’s costs, will prices necessarily be lower with sales revenue maximisation than with profit maximisation?

Q: What will happen to the equilibrium price and quantity of butter in

What will happen to the equilibrium price and quantity of butter in each of the following cases? You should state whether demand or supply or both have shifted and in which direction: (a) a rise in t...

Q: The price of tablet computers and digital cameras fell significantly in the

The price of tablet computers and digital cameras fell significantly in the years after they were first introduced and at the same time demand for them increased substantially. Use cost and revenue di...

Q: If a cinema could sell all its seats to adults in the

If a cinema could sell all its seats to adults in the evenings at the end of the week, but only a few on Mondays and Tuesdays, what price discrimination policy would you recommend to the cinema in ord...

Q: Outline the main factors that might influence the size of the profit

Outline the main factors that might influence the size of the profit mark-up set by a business