Firstly, that is a great video as its both clear and concise. Are they not both interlinked rather than one being favored? Surely with high interest rates the MEC states firms won't invest due to interest eroding the return yet consumer's propensity to save will increase as there is now a larger opportunity cost of not doing so. This will relate to the accelerator theory in that to an extent the PED of the good the firm supplies will not be bought anyway. Which leads to no more investment.
according to the accelerator theory, when people's income rises, firms invest; by investing do you mean they increase their stocks? is that equivalent to their rising their supply?
Also, since you actually replied, maybe you can tell me that my exam board is strage. We do WJEC, and I live in england and not wales! Is it any good?
Did you mean 'strange'? There is nothing wrong with your exam board, both in terms of syllabus for Economics and, of course, there is no distinction between the exam boards (yours, Edexcel, AQA, OCR etc) in terms of respect for the final A-Level. They are all considered as worthy as each other.
I understand what you are saying which is why I want to ask.
It seems advisable to invest in developing nations over developed nations i) because they have already invested there, ii) developing nations are more likely to have more consumers in the future.
How come people still decide to invest in developed nations? How come Japan has a larger economy than France but it's firms invest less than Frances'?
I suppose investment decisions are made on a range of criteria - quality of labour, flexibility of labour laws, tax rates, availability of subsidies/soft loans/tax breaks, pay rates, union strength, proximity to raw material source, proximity to market, stability of political system, transportation facilities etc etc. Some developed countries just offer better prospects for investment.
@pajholden Hmm, sounds right. So I guess developing countries need to be much more organized to attract investments. Makes sense I guess.
One more question. Right now the world is in recession, everyone can feel the difference & it's not easy for many people, but I want to know happens if US defaults it's loan? I mean it's the largest importer, which means it's going to affect the whole world.
@ShuaibMsH On ur question... If US decided to cut back on spending, consumption demand would drop off big time such as for chinese exporters. Their demand however could be revived if the Chinese started spnding their savings on consumption to buy their own goods. But if the US default, anyone who has saved in US treasuries (the chinese come to mind) would lose their money (approx $12trn of them and rising atm) in order to pây the bill of the US's over-consumption.
I think its because theirs less risk involved, the chances are your moneys safer invested into a proven system rather than a new unreliable system.
Its just whether or not your prepared to take the risk or choose the safer option, which most firms probably do, like you said with the france and japan thing.
Dear Sir, Due to your great lectures and simple explanation, I started loving, enjoy & understand Economics. Thanks & expecting more and more topics from you. Love you sir, take care regards.
This series of videos is tremendous. I wanted to brush up on some basic economics to form an opinion on the 'Bail Out' and this series has been very helpful - thank you very much for posting!
Hero!
ermsmith13 6 days ago
PAUSE AT 5:18
ultimatefight3rr 4 months ago
Hi Sir. Could you possibly do a video on internation trade please (The Global Economy). Exam in less than 2months!
ErebusTV 10 months ago
Hello : )
liverpoool4lyf 1 year ago
Thank you very much. You simplify subjects with very easy to understand examples of daily life.
Sincere1351 1 year ago
"Oh, hello there" - classic.
ShmuggyMcGee 1 year ago
Hi,
Firstly, that is a great video as its both clear and concise. Are they not both interlinked rather than one being favored? Surely with high interest rates the MEC states firms won't invest due to interest eroding the return yet consumer's propensity to save will increase as there is now a larger opportunity cost of not doing so. This will relate to the accelerator theory in that to an extent the PED of the good the firm supplies will not be bought anyway. Which leads to no more investment.
MillersCasual 1 year ago
Comment removed
MillersCasual 1 year ago
Thank you for uploading this! I'm studyinig for a Final Exam for Macrotheory currently and this helped a lot!!!
Smartangel1989 1 year ago
according to the accelerator theory, when people's income rises, firms invest; by investing do you mean they increase their stocks? is that equivalent to their rising their supply?
esazaa 1 year ago
Thank you! very helpful.. the way you explained investment made sense to me. :)
WhaatDen 2 years ago
My teacher said MEC stands for Minimum Efficiency of Capital, you said something different. Who is right?
IntelligentGangsta1 2 years ago
It is Marginal Efficiency of Capital
pajholden 2 years ago
Also, since you actually replied, maybe you can tell me that my exam board is strage. We do WJEC, and I live in england and not wales! Is it any good?
IntelligentGangsta1 2 years ago
Did you mean 'strange'? There is nothing wrong with your exam board, both in terms of syllabus for Economics and, of course, there is no distinction between the exam boards (yours, Edexcel, AQA, OCR etc) in terms of respect for the final A-Level. They are all considered as worthy as each other.
pajholden 2 years ago
I understand what you are saying which is why I want to ask.
It seems advisable to invest in developing nations over developed nations i) because they have already invested there, ii) developing nations are more likely to have more consumers in the future.
How come people still decide to invest in developed nations? How come Japan has a larger economy than France but it's firms invest less than Frances'?
ShuaibMsH 2 years ago
I suppose investment decisions are made on a range of criteria - quality of labour, flexibility of labour laws, tax rates, availability of subsidies/soft loans/tax breaks, pay rates, union strength, proximity to raw material source, proximity to market, stability of political system, transportation facilities etc etc. Some developed countries just offer better prospects for investment.
pajholden 2 years ago
@pajholden Hmm, sounds right. So I guess developing countries need to be much more organized to attract investments. Makes sense I guess.
One more question. Right now the world is in recession, everyone can feel the difference & it's not easy for many people, but I want to know happens if US defaults it's loan? I mean it's the largest importer, which means it's going to affect the whole world.
ShuaibMsH 2 years ago
@ShuaibMsH On ur question... If US decided to cut back on spending, consumption demand would drop off big time such as for chinese exporters. Their demand however could be revived if the Chinese started spnding their savings on consumption to buy their own goods. But if the US default, anyone who has saved in US treasuries (the chinese come to mind) would lose their money (approx $12trn of them and rising atm) in order to pây the bill of the US's over-consumption.
dfjpr 1 year ago
I think its because theirs less risk involved, the chances are your moneys safer invested into a proven system rather than a new unreliable system.
Its just whether or not your prepared to take the risk or choose the safer option, which most firms probably do, like you said with the france and japan thing.
AsherB17 2 years ago
Dear Sir, Due to your great lectures and simple explanation, I started loving, enjoy & understand Economics. Thanks & expecting more and more topics from you. Love you sir, take care regards.
ASURANKAPPA 2 years ago
OH HELLO THERE ! :)
tahateekhan 2 years ago
you're awesome...loved the hello there at the beginning of the video haha, revising for my AS economics exam this afternoon! really helpful
derithomas 2 years ago
accelarator is not in AS..
casualad1 2 years ago
i have moved my demand curve to meet your supply of these awesome videos!!
GIOGS 2 years ago 17
@GIOGS wouldn't it be an extension aha?
hazaoc 1 year ago
im lucky to find an Alevel Economics teacher on youtube because i'm in my A2 Economics and this is REALLY HELPFUL. THANKS!
RachOo 2 years ago
god bless you man, because of this video i got ! in my test!!
kranti1992 2 years ago 2
Sir one word... "Brilliant" !
Xxcaliber1 2 years ago 6
Could please teach about Mandell Fleming's theory?
Ledatokyo 2 years ago
Your videos really help me to study macroeconomics. Thank you very much.
Ledatokyo 2 years ago 3
Come to US and teach us Econ... you'll make good money :)
loverofbeats 2 years ago 3
Hello Phil, Could I get a hard copy of these for my teaching?
Excellent and it is a nice introduction to save the kids listening to me all the time!
Inforapennyinforapou 3 years ago 2
Muito bom! Acredito que às vezes é preciso ler um livro inteiro para entender o que foi dito aqui. Wonderful!
duubamg 3 years ago
how many people do you get flying to athens to buy you a six-pack? haha count me in .... again, v v helpful !!
maporteous 3 years ago
This series of videos is tremendous. I wanted to brush up on some basic economics to form an opinion on the 'Bail Out' and this series has been very helpful - thank you very much for posting!
mikeyhuge 3 years ago