Ask an Economist
Welcome to Ask an Economist, a public service of the Department of Economics at Iowa State University, designed to answer your economic questions.
Our talented faculty and alumni can answer questions on a variety of economic topics to help you make more informed choices about your day-to-day decisions--or to just add a more reasoned voice when talk of the economy comes up around the dinner table.
Questions & Answers
First, it is important to understand the difference between a few concepts. The demand is a function that describes that the quantity demanded (consumption) declines as the price increases.
I teach an Economics of Sports class here at Iowa State University. In my class, we discuss the economic structure of the NCAA and professional sports leagues in the U.S. You are correct that the NCAA is a cartel and so is a profession
There are really two questions here: (1) what are the causes of economic fluctuations, generally? And (2) what role do wars and military spending play in these fluctuations?
The main problem with your calculation is that you are using as "G" the French government's budgetary expenditure, which most likely includes large transfer payments. Transfer payments are not part of GDP.
This question is in two parts: 1) How prevalent is the requirement for 100% giving of any amount; and 2) Do organizations raise more money if there is a 100% giving expectation?
The answer is no. It is not correct to conclude that Bukina Faso’s economy is supported by only 15% of the population.
Effectively, you are asking: how can there be different prices across countries within the same currency zone?
In the strictest (or standard) sense of the word, you would be correct that game A is “rarer,” given that there are fewer of these in existence than game B.
The American Communities Survey provides information on median household income
This is before taxes and transfers
American Fact Finder
If your company is based in the U.S., the valuation should be based on the standard CAPM.
Let me start by reminding you that GDP is a measure of the total amount of goods and services produced in an economy, say the USA, in a year.
Let me start by saying that I have expertise in the economics of commercial fishing. I cannot speak to whether GDP will increase next year.
GDP is the final $ value of all final goods and services produced in a year.
Social welfare maximization in economics typically refers to the correct allocation of scare resources to agents (firms, individuals) so as to generate the maximum possible utility (or other criterion) for the agents.
Minimum wages are wage floors set by law, not by the market. They, however, are subject to political pressure from citizens.
The question of how demographics relate to economic issues (e.g., poverty, economic growth) has been at the forefront of economics ever since its infancy as a science. For instance, Rev.
If I understand your question correctly, you are asking about factors that will determine the success or failure of the Arena Football League. As with any firm or industry, ‘economic’ success or failure depends on the ability of the firm or
None of us here have direct expertise on this issue.
Medieval cathedrals and other structures are indeed impressive works of construction, and to look at them is to marvel at human ingenuity. Medieval societies were in fact technological quite progressive, a fact documented for example in Joel
You have put your finger on an important topic that economists have been arguing about since Kenneth Arrow’s analysis of the incentives to innovate in “Economic Welfare and the Allocation of Resources for Inventions” in _The Rate and...
Continue Reading AnswerSouks and bazaars are in appearance competitive market places. The close proximity of shops selling virtually identical goods should drive price down.
While it is true that, in general, farmers are still facing high production costs. They have also seen some of those costs fall over the past couple of years. And it is not true that they have nowhere to sell their products. Crop
An increase in government spending will increase the domestic interest rate. A lot depends on how analysts perceive future price levels and inflation.
My best guess is that you are interested in the effects of investors withdrawing from the financial market (as opposed to the labor market or some other market).