How well do you know economics?
How many mechanisms do governments use to manage an economy? Name them.
What is a disposable income?
How do commercial banks decide on the rate at which they lend money to customers?
What does an administrative approach include? Add one example
What's the difference between microeconomics and macroeconomics?
Which kind of monetary policy isn't used very often and why?
How do commercial banks find funds for lending to customers?
What is a mortgage? Does it depend on interest rates? Why?
What is buying on credit?
Are low or high interest rates good for companies? Why?
What is the exchange rate?
How many measures of poverty are there? Name them
What does the poverty line mean?
How does the World Bank define extreme poverty?
How much do people living in relative poverty earn?
What can cause poverty in developing countries?
Why are countries often trapped in a poverty cycle?
Why is it near to impossible for people on a low income to combat poverty?
What is revenue?
What is income tax?
What is value added tax?
What is progressive income tax?
What are transfer payments? Give some examples?
Beside transfer payments what does the revenue go on?
What are mixed public goods?
Why do nany governments fund on health care or education?
How do economists try to make the economy fair?
What is the difference between horizontal and vertical equity?
Why do some economists think equity is not important?
What are externalities?
What does price discrimination mean?
Which degree price discrimination is important for retailers and why?
Is it possible for companies to make a profit using third degree price discrimination?
What is first degree price discrimination? Give some examples
What is the main factor that affects price in a free market?
What is consumer surplus?
What does the law of supply say?
What can you measure looking at consumer and producer surplus together?
At which degree price discrimination does the price fall as quantity rises?
How can economists measure the fairness of economic systems?
Inusova Ayshat
ОтветитьУдалить10) Low interest rates are good for companies, they feel more confident about investing in order to expand their business. Low interest rates will encourage them to take out loans in order to build factories, buy machines and increase production. All of this increases the size of national output. Higher interest rates has the opposite effect.
13) The poverty line is a level of income that is so low that people cannot afford the basic necessities to live, such as food, clothing and shelter. According to the World Bank, these
are people who are living on two dollars a day.
1. How many mechanisms do governments use to manage an economy? Name them.
ОтветитьУдалитьThe first of these mechanisms is fiscal policy. Fiscal policy refers to the tax system and to government spending. By increasing or decreasing the amount of tax people must pay, the government can affect how much money people have available to spend.
The second mechanism is monetary policy. With its monetary policy, a government sets interest rates and also controls the amount of money that circulates in the economy.
The third mechanism is administrative approach. This is a range of things that governments do to increase the supply of goods and services to the economy but without increasing prices.
With a combination of these methods, governments try to steer or guide the economy on a steady and predictable path. They aim for gradual economic growth and to avoid disasters like the Great Depression.
2. What is a disposable income? income that a person has after paying taxes, contributions to the insurance system and other deduction.
Suleymanova Milana
What are externalities?
ОтветитьУдалитьWelfare economics isn't only about the fairness of economic systems. It's also about the impact that economic choices have on our lives. Economic transactions often affect other people who are not directly involved in those transactions. Economists all these results externalities. Externalities are sometimes good and sometimes bad for society.
What does the law of supply say?
The law of supply says supply rises as price rises. This is because smaller amounts cost less to produce than larger amounts. For this reason, producers would have been happy to sell some of their output below market price.
Arsanbekova Djennet
What is the exchange rate?
ОтветитьУдалитьThe exchange rate compares the value of different currencies. It often falls when interest rate falls.
How can economists measure the fairness of economic systems?
Welfare economists are interested in measuring how fair our economic systems are. One way they do this is to look at how income and wealth are distributed among the population. Welfare economists also investigate the effects of government policy on equity.
Magomedova Maryam
39.Second degree is when the price changes depending on the quantity demanded.
ОтветитьУдалить40.Recall that a major part of economics is the distribution of goods — who gets what. Therefore, fairness appears in economics by determining how to distribute goods to certain groups of people.
Matagirov Makhach
What is first degree price discrimination? Give some examples.
ОтветитьУдалитьFirst degree price discrimination is when almost every customer pays a different price for the same product. With first degree discrimination, each consumer wil pay what he or she thinks the product is worth and sellers charge each person accordingly. For example, somebody may think that a CD is worth €20. whereas I think it's only worth 50 cents! We are on different points on the demand curve.
What is the exchange rate?
The exchange rate compares the value of different currencies. It often falls when interest rate falls.
Magomedova Maryam
21. What is value added tax?
ОтветитьУдалитьValue added tax is paid when we buy goods or services which are not essential or are regarded as luxuries.
25. What are mixed public goods?
Mixed publie goods are things which people ought to have because they are beneficial, such as health eare and education. Why do many governments fund these things? The reason is that having a healthy, educated population is good for the economy and for society as a whole. People, especially those on low incomes, may not be able to spend money on these services. Governments fund the services so that everyone ean afford them, and this encourages people to use them.
Abdulaeva Saida
Shabanov Kamilbek
ОтветитьУдалить3. How do commercial banks decide on the rate at which they lend money to customers?
Companies, too, are affected by interest rate changes. When interest rates are low, they feel more confident about investing in order to expand their business. Low interest rates will encourage them to take out loans in order to build factories, buy machines and increase production. All of this increases the size of national output. Again, higher interest rates will have the opposite effect.
4. What does an administrative approach include?
The third mechanism is administrative approach. This is a range of things that governments do to increase the supply of goods and services to the economy but without increasing prices. There are a number of ways governments try to do this. For example, improvements in education and training can make the workforce more productive. Investment in technology can make industry more efficient. Governments can also change employment and business laws to make the market more competitive.
Maloguseinova Zalina
ОтветитьУдалить8) What is a mortgage? Does it depend on interest rates? Why?
Mortgage is a loan, which most people take out is to buy a house. It depends on interest rates, because when interest rates increase, mortgages become more expensive and people will not want to buy a house. A fall in interest rates will have the opposite effect on the house buying chain.
17) Why are countries often trapped in a poverty cycle?
Economic growth depends on investment. Investment money comes from savings. A nation that has almost no savings cannot grow economically. This keeps wages low, so again people cannot save and the cycle continues.
Asiyat Gasanova
ОтветитьУдалить22) What is progressive income tax?
Many countries operate a system called progressive income tax. Under this system, people with a higher income pay a higher percentage to the government.
36) What is consumer surplus?
Consumer surplus is the difference between the price people are willing to pay and the price they actually pay
5. What's the difference between microeconomics and macroeconomics?
ОтветитьУдалитьMicroeconomics looks at how the details of the economy work. Macroeconomics takes a few steps back and looks at the whole picture. While microeconomies looks at supply and demand for a single product or industry, macroeconomics follows supply and demand patterns for the whole economy. Whereas microeconomics is about economic events at home, macroeconomies looks at how the domestic economy interacts with the economies of other countries.
18. Why is it near to impossible for people on low income to combat poverty
People on the low income spend everything they earn on a daily necessities. They save almost nothing. In order to raise themselves out of poverty, they need education. This costs money. Even when the governments provide free schooling, the poor May not spend there children because they need them to work. These families cannot afford the cost of spending a child to school. Without education, the children cannot find better paid work. In this way generations of the same family remain poor.
The same cycle that traps individual can trap a whole population. Economic growth depends on investments. Investment money comes from savings. A nation that has almost no savings cannot grow economically. Just keep wages low so again people cannot save end the cycle continues.
(Makhsudov Magomed)
Abdurazakova Amina
ОтветитьУдалить23. What are transfer payments? Give some examples?
Transfer payments are benefits that are given to families and individuals in society who need financial support.
These payments include sqfety net benefits such as unemployment benefit and social security benefits for families who do not have enough income to get by.
24. Beside transfer payments what does the revenue go on?
Most of the rest of the revenue goes on public goods. These can be divided into two areas: pure publie goods and mixed public goods. Pure public goods are things like street lighting or national defence.
Isupaeva Patimat
ОтветитьУдалить35) What is the main factor that affects price in a free market?
In a free market prices for goods and services are simply what people are prepared to pay. The only reason why things are bought and sold is because there is a demand for them.
2)hat is a disposable income?
Income that a person has after paying taxes, contributions to the insurance system and other deduction.