by Simon Ng | Jan 1, 2017 | Economic Indicators, Economics Tuition, JC Economics Essays, Macroeconomics, National Income Accounting |
Many economists and statistical reports from prominent research institutions have ranked Singapore as one of the countries with a higher standard of living as our real Gross Domestic Product has been ranked in the top ten of all nations over the years. However,...
by Simon Ng | Jul 25, 2016 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics |
First, a high level of inflation introduces business uncertainty and hence reduces investors’ incentive to invest. Specifically, hyperinflation disrupts the derivation of cost of production, making it difficult to set price which discourages trading activities and...
by Simon Ng | Jul 16, 2016 | Economics Tuition, Inflation, JC Economics Notes, Macroeconomics |
Given that housing is an asset to home-owners, the rise of the price of assets will cause the individuals to raise the price of their factor services as they peg their factor cost to the price of the housing prices. The price of assets will rise due to the inflow of...
by Simon Ng | Oct 8, 2015 | Economics Tuition, Foreign Exchange, JC Economics Notes, Macroeconomics |
The Monetary Authority of Singapore (MAS) adopts a managed-float exchange rate system, which requires direct government intervention in the foreign exchange market through the direct buying and selling of the Singapore Dollars and foreign currencies. The MAS will set...
by Simon Ng | Oct 8, 2015 | Economics Tuition, International Trade, JC Economics Notes, Macroeconomics |
A quota refers to the direct control of import demand, which will lower supply of imports, thus reducing quantity demand for imports. The restriction of the quantity of imported goods will create an artificial shortage that leads to the increase in price of the...
by Simon Ng | Oct 8, 2015 | Economics Tuition, International Trade, JC Economics Notes, Macroeconomics |
Purpose of comparative advantage The concept of comparative advantage explains how countries which are efficient in production can specialise and trade with countries which are inefficient so as to maximise total production and consumption, based on the concept of...
