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Economics lets help

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Comments

  • Registered Users, Registered Users 2 Posts: 8,011 ✭✭✭cHaTbOx


    Thank you.

    Pfft, typo... Thats an insult!

    Good luck everyone

    Good luck mate


  • Registered Users Posts: 561 ✭✭✭minty16


    This is sick. Only started studying about an hour ago.
    I'm thinking supply and demand, national income, elasticity, and wing the rest.


  • Registered Users, Registered Users 2 Posts: 8,011 ✭✭✭cHaTbOx


    minty16 wrote: »
    This is sick. Only started studying about an hour ago.
    I'm thinking supply and demand, national income, elasticity, and wing the rest.

    I sent you a msg


  • Registered Users Posts: 561 ✭✭✭minty16


    Nice one. I'm seriously considering an all nighter. Want to do alright in my last exam considering i ****ed up everything else. 6 honours subs and im looking at 300 if i'm lucky.. :(


  • Registered Users, Registered Users 2 Posts: 8,011 ✭✭✭cHaTbOx


    minty16 wrote: »
    Nice one. I'm seriously considering an all nighter. Want to do alright in my last exam considering i ****ed up everything else. 6 honours subs and im looking at 300 if i'm lucky.. :(

    Yeah thats what im doing but dont stress you got the questions

    look over long run equilibrium supply diagram and how to explain,3 barriers to entry,price discriminaton and example and 3 conditons which must exist to enable a firm to practice price discrimination in monopoly


  • Registered Users Posts: 561 ✭✭✭minty16


    Cheers. At least I'm not alone. You confident about all of this coming up ?


  • Registered Users, Registered Users 2 Posts: 8,011 ✭✭✭cHaTbOx


    minty16 wrote: »
    Cheers. At least I'm not alone. You confident about all of this coming up ?

    Yeah Im fairly coinfident :D just hope it pays off


  • Registered Users Posts: 561 ✭✭✭minty16


    Haha, sure I'm desperate anyway.
    Good luck tomorrow and nice one again.


  • Registered Users, Registered Users 2 Posts: 8,011 ✭✭✭cHaTbOx


    minty16 wrote: »
    Haha, sure I'm desperate anyway.
    Good luck tomorrow and nice one again.

    no probs and it is tommorow lol


  • Registered Users Posts: 133 ✭✭superLeetive


    Thought I'd revive this.

    Define:

    The Law of Equi-Marginal Returns


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  • Closed Accounts Posts: 6,362 ✭✭✭K4t



    Whats are the causes of a decrease in demand of housing market?
    Peleus wrote: »
    I'm gonna guess:

    High Interest Rates:
    high interest rates would discourage borrowing and encourage saving. High interest rates would discourage buyers from taking out a mortgage as they will pay a lot more in the long run. Because of these interest rates, people are saving their money rather than buying homes, so the demand for housing is decreased.

    Real incomes reduced by inflation
    Due to our rate of inflation of approx 5%, buyers have less disposable income and their cost of living has risen. The amount of money they have will be saved to earn interest rather than be spent on a mortgage that will grow and cost them a lot of money in the long run. Therefore People are saving their money and the demand for housing has decreased.

    The usual interest and inflation trick. Works for every question!

    Interest rates are very low at the moment so I'm not sure about your first point and inflation is hovering around zero so I'm not sure about your second point either.

    Reasons I'd say are:
    1. Basically, for the last few years the banks have been giving bad loans and too high mortgages to just about everyone. Developers thus built huge housing developemnts etc. they are lying idle around the country now.

    2. Ah, banks aren't lending at the moment. Simple as really. Also, demand is low because people's real incomes have been reduced with levies etc.

    3. People expect house prices to fall even further so are not buying.


  • Registered Users, Registered Users 2 Posts: 1,257 ✭✭✭JSK 252


    Thought I'd revive this.

    Define:

    The Law of Equi-Marginal Returns

    To maximise utility, allocate expenditure in such a way that the ratio of marginal utility to price is the same for all goods bought.

    Define The Tax Wedge


  • Registered Users, Registered Users 2 Posts: 1,288 ✭✭✭ynwa_17


    JSK 252 wrote: »
    To maximise utility, allocate expenditure in such a way that the ratio of marginal utility to price is the same for all goods bought.

    Define The Tax Wedge

    The difference between the after-tax of an employee and the wages, including Employer taxes, which it costs the employer.

    Define price rigidity


  • Closed Accounts Posts: 15 QuoiFaireX


    PRICE RIGIDITY when prices tend not to change even if costs have
    changed in order to avoid reactions from competitors...


    Whats the difference between tax avoidance and tax evasion?;)


  • Closed Accounts Posts: 514 ✭✭✭Chanandler Bong


    QuoiFaireX wrote: »
    PRICE RIGIDITY when prices tend not to change even if costs have
    changed in order to avoid reactions from competitors...


    Whats the difference between tax avoidance and tax evasion?;)
    Tax Avoidance = LEGAL methods to avoid paying certain taxes (people saving with An Post dont pay DIRT im pretty sure)

    Tax Evasion = ILLEGAL = not declaring full income or working in black economy, yeah i reckon we keep this up and running, its a good memory tool.

    What is the National Treasury Management Agency responsible for|?


  • Registered Users, Registered Users 2 Posts: 2,378 ✭✭✭Skuxx


    What is the National Treasury Management Agency responsible for|?


    It is responsible for managing assets and liabilities on behalf of the Irish Government. It also manages other Government funds such as the Social Insurance Fund and the Dormant Accounts Fund and it borrows on behalf of the Housing Finance Agency.
    It was established in 1990 as far as I know!!


    What are the main teachings of economist J M Keynes?


  • Closed Accounts Posts: 69 ✭✭7Steve


    alan1990 wrote: »

    What are the main teachings of economist J M Keynes?

    Liquidity Preference Theory,The Multiplier, and Government Intervention.



    Define: Economic Rent


  • Registered Users, Registered Users 2 Posts: 1,288 ✭✭✭ynwa_17


    7Steve wrote: »
    Define: Economic Rent

    The payment to a factor of production above its transfer earnings



    What are the canons of taxation


  • Registered Users Posts: 133 ✭✭superLeetive


    Canons of taxation:

    Certainty
    Convenience
    Equity
    Economy

    State 4 economic assumptions used for analysing consumer behaviour.


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  • Registered Users Posts: 271 ✭✭Gi joe!


    Canons of taxation:

    Certainty
    Convenience
    Equity
    Economy

    State 4 economic assumptions used for analysing consumer behaviour.

    Consumers act rationally
    Consumers only buy economic goods
    Oppurtunity cost is involved
    The Law of Diminishing Marginal Utility applies


    State 5 reasons why countries trade with each other.


  • Closed Accounts Posts: 6,362 ✭✭✭K4t


    1. To avail of products not produced at home.
    2. To avail of essential products not produced at home (e.g. oil)
    3. To create jobs in exporting/attract foreign investment/Expanding business
    4. To maintain stable international relations
    5. To increase national income

    Q. 3 factors that effect the Efficiency of Capital?


  • Closed Accounts Posts: 514 ✭✭✭Chanandler Bong


    Climatic Reasons (Oranges)
    Lack of Mineral Resources (Oil)
    To Increase Market Size
    Greater Consumer Choice
    Law of Comp Adv

    Outline the factors which affect interest rates?


  • Registered Users Posts: 271 ✭✭Gi joe!


    Climatic Reasons (Oranges)
    Lack of Mineral Resources (Oil)
    To Increase Market Size
    Greater Consumer Choice
    Law of Comp Adv

    Outline the factors which affect interest rates?

    The interaction of the supply and demand of money
    Central Bank as 'lender of last resort'
    Degree of risk


    State 5 advantages of direct taxation


  • Closed Accounts Posts: 113 ✭✭Saul-Good


    Could someone explain Bank Credit Creation to me in layman's terms? I'm having a bit of trouble trying to understand it, it's really poorly explained in my notes.

    Much Obliged:D

    Edit:I just noticed the question.
    1.It's related to the tax payers ability to pay
    2.low cost of collection
    3.it's convenient for the tax payer
    4.stabilises the economy
    5.liability is known


  • Registered Users, Registered Users 2 Posts: 1,288 ✭✭✭ynwa_17


    Saul-Good wrote: »
    Could someone explain Bank Credit Creation to me in layman's terms? I'm having a bit of trouble trying to understand it, it's really poorly explained in my notes.

    Much Obliged:D

    I was in the same boat. Nowadays i know how to do it but i dont understand it lol. Ill give it a shot

    Basically when someone makes a deposit into a bank account, the bank knows they only need to keep 10% of any reserves in cash (Primary Liquidity Ratio), so they can now loan out 900% of the deposit in the form of non cash money, ie credit cards etc.

    Numerically its like this

    Sean makes a deposit of €100 in his bank account. The bank know they only need to keep 10% in cash so this €100 is the 10%.

    100 - 10%
    1000 - 100%
    900 - 90%

    The bank has created €900 in credit, in non cash funds. Thats right from what i remember but maybe someone can explain it better or tell me where i've gone wrong because i think its going to come up and i'd like to know myself lol


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  • Closed Accounts Posts: 2,208 ✭✭✭Économiste Monétaire


    Saul-Good wrote: »
    Could someone explain Bank Credit Creation to me in layman's terms? I'm having a bit of trouble trying to understand it, it's really poorly explained in my notes.

    Essentially it's a distinction between reserves (or 'cash' as ynwa_17 described above), deposits and loans. Here's an example I gave ages ago on the economics forum:

    Note|Reserves €|Loans €|Deposits
    Central Bank injects €1,000 of new reserves|+1,000|0|+1,000
    Bank 1 lends to Person 1|-|+900|+900
    Person 1 purchases an aeroplane from Person 2|-900|-|-900
    Person 2 deposits the money in Bank 2|+900|-|+900
    Bank 2 lends to Person 3|-|+810|+810
    Person 3 purchases a computer from Person 4|-810|-|-810
    Person 4 deposits the money in Bank 3|+810|-|+810
    Bank 3 lends to Person 5|-|+729|+729
    Person 5 purchases blow-up-doll from Person 6|-729|-|-729
    Person 6 deposits money in bank 1/2/3|+729|-|+729
    ....|""|""|""
    Totals|1,000|9,000|10,000


  • Closed Accounts Posts: 6,362 ✭✭✭K4t


    Q. 3 factors that effect the Efficiency of Capital? Please!


  • Registered Users Posts: 133 ✭✭superLeetive


    K4t wrote: »
    Q. 3 factors that effect the Efficiency of Capital? Please!
    Marginal efficiency of capital depends on two sets of factors:
    a. Short run factors, and
    b. Long run factors

    a. Short run factors

    1. Marginal propensity of consumption
    Increasing level of marginal propensity of consumption increases
    marginal efficiency of capital. The intensity of consumption
    encourages marginal efficiency of capital.

    2. Income
    Higher levels of income yield larger marginal efficiency of capital.
    Increasing income will also increase conspicuous consumption.

    3. Price level
    During periods of inflation marginal efficiency of capital will be high.
    Price levels with more money supply will increase capacity to pay.

    4. Interest rate
    Higher interest rates discourage marginal efficiency of capital. Higher
    cost of capital increases cost of production thus reducing chances of
    increasing marginal efficiency of capital.

    5. Consumption expenditure
    Higher consumption expenditure increases the marginal efficiency of
    capital. Increasing consumption expenditure can be due to reasons
    like income, price levels, demonstration effect or price illusion.

    6. Government Policy
    Government policy of taxation, controls on out put will reduce the
    possibility of increasing marginal efficiency of capital.

    7. Business cycles
    Business cycles mainly deal with mood in business environment.
    There can be business optimism or business pessimism. During
    periods of business optimism the marginal efficiency of capital will
    be high similarly, during periods of business pessimism, marginal
    efficiency of capital will be low.

    8. Rational expectations
    A rational expectation is a post Keynesian concept, concerned with
    business environment and business. It is regarding the business
    adapting to changing policy, market, consumer expectation and
    management of business with rational risk management.

    b. Long run factors

    1. Population
    Though population changes even in the short run. The effect of
    population can be seen only in the long run, by way of changes in the
    pattern of demand and labor force.

    2. Technology
    Technology helps in the long run in reducing costs and making
    production function efficient.

    3. Alternative sources of raw material and energy
    Alternative and cheaper sources of raw material and energy change
    the production function and help in expanding out put and making it
    economical.

    4. Expanding markets
    Expanding markets provide purpose for the industry to produce and
    distribute. In the long run, mass consumption increase.

    Q. List 4 ways by which the Irish government could use taxation to create a favourable climate for investment in Ireland.


  • Registered Users, Registered Users 2 Posts: 3,016 ✭✭✭lilmissprincess


    Q. List 4 ways by which the Irish government could use taxation to create a favourable climate for investment in Ireland.

    1. Tax breaks to prospective MNCs as to attract investment
    2. Decreased Tax as to encourage employment, therefore creating a better workforce.
    3. Reductions in Tax may cause greater spending due to an increase in the amount of disposable income available.
    4. Reductions in Indirect Tax = fall in inflation = less costs to companies= incentive.


    Q: What is the relationship between average cost and marginal cost


  • Closed Accounts Posts: 6,362 ✭✭✭K4t


    MC > AC average cost is rising
    MC < AC average cost is falling

    MC = AC average cost is constant

    Q. Effects of Low Interest rates on the Irish Economy?


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  • Closed Accounts Posts: 25 barahsug


    Decreas in cost of serving National Debt foreign component

    Deman Pull inflation may result

    Falling cost of borrowing

    Decreased incentive to save

    Decrease in the volume of bad debts



    In costs of production, what's the relationship between the short run and the long run?


  • Registered Users Posts: 60 ✭✭Du


    barahsug wrote: »
    Decreas in cost of serving National Debt foreign component

    Deman Pull inflation may result

    Falling cost of borrowing

    Decreased incentive to save

    Decrease in the volume of bad debts



    In costs of production, what's the relationship between the short run and the long run?
    short run slopes down due to spread of fixed costs and law of demand, slopes up because of law of DMR
    Long run slopes down due to economies of scale, slopes up because of diseconomies of scale.
    Long run is made up of the short run cost curve as all costs are variable in the long run (diagram).


    What are the differences between supply price, transfer earnings and economic rent?


  • Registered Users Posts: 133 ✭✭superLeetive


    Du wrote: »
    What are the differences between supply price, transfer earnings and economic rent?

    Supply price is the minimum payment necessary to bring a factor into use and maintain it in that particular employment where as

    transfer earnings are the wages which a factor can earn if transferred to the most attractive alternative employment and

    economic rent is any payment to a factor in excess of its supply price (as explained above).

    Q) Effects of the fall in the value of the sterling against the euro on the Irish economy?


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