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Why is the concept of the “marginal “ so important in economics?

“Marginal” in economics means “additional” and “extra”. It is the idea that firms may take decisions by considering the effect of small changes from the existing situation. Economists rely heavily on t...

Answered by Tiffany C. • Economics tutor

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Explain the factors influencing short run and long run aggregate supply

Factors affecting the short run aggregate supply includes factor costs, temporary supply shocks, government policies with short-term effects and expectation of price level.

Answered by Tiffany C. • Economics tutor

36481 Views

Examine the desirability of a fixed exchange rate regime amongst the world's major economies.

A fixed exchange rate is one in which the currency is pegged, and the government intervenes to ensure that this value is maintained if it is threatened.Governments or central banks can do this by buying o...

Answered by Rhys M. • Economics tutor

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What is the difference between accounting and economic profit?

Accounting profit is revenues minus explicit costs, which include wages and machine rental among other things. But there are also implicit costs, or opportunity costs. These can arise because the factors ...

Answered by Jonathan A. • Economics tutor

4550 Views

Discuss the impact of an increase in income tax on labour markets.

The first thing we need to think about to answer this question is the target of this income tax. During a short introduction it is useful to outline what the question is really asking so that you are a...

Answered by Charlie N. • Economics tutor

9486 Views