This website provides detailed guides to solve common economic problems. The areas of economics covered on this webpage mostly relate to first-year undergraduate microeconomics and macroeconomics. Often all it takes to understand a problem is to see a worked example first. The aim of this website is to be that worked example.
Public and private savings
The national, private and public saving rates all play an important role in the performance of the macroeconomy. Being able to measure these statistics is important for any economist... Read more
- Burden of taxation in supply and demand Model
- Calculate the equilibrium price and quantity from math equations
- Comparative advantage, Absolute advantage and gains from trade
- Consumer surplus, producer surplus and Dead weight loss with inelastic supply curve
- Cross price elasticity of demand
- Deadweight loss monopoly
- Deadweight loss monopsony
- Define elasticity | inelastic demand | elastic demand |Unit elasticity | short run v long run elasticty | Mid-point formula
- Difference between economic and accounting profit
- Economic expansion path
- Equilibrium price and quantity after tax
- Expenditure Minimization problem and Expenditure function
- Find dead weight loss and quantity produced from tax revenue
- How to calculate expenditure elasticity
- Positive and Normative Economics
- Price floor and tax on cheese market
- Show in a supply and demand diagram how minimum wage can increase unemployment
- Supply schedule
- Suppose the government imposes a $2 tax on this market [example]
- Suppose the government imposes a tariff on all imports
- Types of price elasticity of demand
- Utility maximization with perfect complements
- When demand increases what happens to supply
- Why does revenue decrease with elastic demand when price increases
- Why does the demand curve slope downwards
- Why price floors reduce social surplus
- Balance of trade formula
- Balanced growth path with AK model
- Calculating GDP growth
- Consumer Price Index (CPI) and inflation rate formula
- Factor shares and Cobb-Douglas Factor shares
- holding national savings constant, an increase in Net foreign investment (NFI) does what to the accumulation of capital
- How to calculate National Savings, Public savings and Private Savings
- Natural rate of unemployment
- Net foreign investment formula
- Potential GDP formula and output gap
- Prove if an allocation is pareto optimal it is also efficient
- Suppose the government borrows $20 billion more next year than this year [market for loanable funds]
- Terms of trade
- The market for loanable funds
- The natural level of output
- Three different ways to calculate GDP
- Why does aggregate supply slope upwards?
- Why does the demand curve slope downwards