Top answers

Why GDP is not a good measurement of standards of living.

GDP fails to include areas such as education (e.g. years of schooling), Health (e.g. numbers of doctors per 1000 inhabitants, life expectancy), income distribution etc.
EZ
Answered by Effie Z. • Economics tutor
3160 Views

Why should the government consider the price elasticity of demand when imposing tax on goods?

The price elasticity of demand tells you how sensitive consumers are to a change in the price of a good. Therefore the more sensitive (elastic) the demand is, the more the tax will effect the demand. So, if ...
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Answered by Tamara T. • Economics tutor
32052 Views

What is a general equilibrium in a market?

Normally in order to understand equilibrium, we must first think of the concepts of supply and demand. In a market in order to reach equality between two variables or equilibrium in economic terms, we need t...
MP
Answered by Martin P. • Economics tutor
2191 Views

Why are no supernormal profits made in perfect competition in the long run?

A perfectly competitive market is a market in which there are many buyers and many sellers who all have perfect information. There are many firms in the market who all produce exactly the same product and th...
DG
Answered by David G. • Economics tutor
26341 Views

What are causes of exchange rate fluctuations?

Causes of exchange rate fluctuations: - short term - changes in the demand and supply of the currency in the FOREX markets. (mainly due to speculations). - longer term - exports, imports, capital flows - tha...
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Answered by Julia R. • Economics tutor
7811 Views