Ask an Economist

The scenario you describe is entirely possible although economists believe a whole new set of jobs will be created once AI takes over our lives.

To begin, for those not familiar with it, Alexander’s book is an examination of the economic decline of Lancaster, Ohio, a city dependent especially on Anchor Hocking Glass.  Like many smaller cities throughout the American Midwest that were

Whether buying farmland at current prices is “worth it” depends largely on financing, cash flow expectations, and long-term goals.

Economics, broadly speaking, is not a predictive subject, certainly not in the way, say, meteorology is. Meteorology is very useful at predicting both short-and long term weather, when it will rain, will we get snow or a tornado, etc.

First of all, the question is related to an IRS rule and is technical.

Rent-to-buy agreements are highly tailored to each situation.

Many small cities have struggled economically in the past half century, especially in the Midwest with previously manufacturing-heavy local economies.

Without the transitivity assumption, an economic agent can exhibit preference cycles, leading to potential risk-free arbitrage opportunities.

There are some very good resources on the web that answer many questions about student debt.

No, the increase in national debt is not subtracted from GDP. (Debt, per se, is not productive.) But interest payments on outstanding debt enter GDP as government expenses, as G in Y = C+I+G. 

Thanks for this question. First, I would like to point out that the electric rates are regulated.

The calculation of real income involves regularly updating the basket of goods and services to ensure it remains relevant and accurate.

Your understanding of Quarterly and Annual data is correct.

Economists always consider it important to identify whether theoretical models effectively explain the real economy. Your question has also been a long-standing one for economists.

I commend your interest in Economics as a discipline.  Economics offers powerful insights about many aspects of the way society is organized and provides a helpful way of thinking about many contemporary policy issues.

Let’s start by understanding the numbers (Table 1).

Like any other taxes, people have different views on luxury tax. Some might view it as a way to raise government revenues without having large impacts on the less wealthy.

Let’s consider the three parties involved with a car sale and its potential repair. The three parties are, the consumer, the firm, and the repairman.

To understand Open Market Operations (OMOs), we first need to understand, Government securities. Government securities are a tradeable instrument issued by the Government (Treasury securities in case of US).

The primary issue you have identified is the shortage of houses, especially those priced below $150,000.