Author: JC Admin

17 Dec How to choose a good Economics tutor

Economics tutors are teachers outside of school. People who are looking for an economics tutor will often ask how long they have been teaching this subject. In reality, how long a tutor has been teaching for does not necessarily indicate whether or not he is a good teacher. Sometimes an experienced teacher only focuses on homework, coursework, and exams, while younger teachers may also be able to present an understanding of economics that is just as comprehensive. People also often ask to check the teacher’s qualifications, such as if they are graduated or completed their master’s in that subject. There are many qualities to consider.

Tutors help their students maximize their abilities by guiding them with their knowledge and experience. However, to attain the best possible experience, one should consider the following tips when choosing a tutor for economics:

1. Identify your own way of learning – Different students will face different struggles with their studies, especially if their learning styles clash with the teaching styles of their tutors. So, before you choose your tutor, let him know what you learning style is like, such as whether you are a hands-on learner or a visual learner.

2. Set specific goals regarding the subject – Setting goals today will help you build up a bright tomorrow. The qualification of your teacher should match the current standard of your study and future aims. If you are only looking for a tutor to pass high school with good grades, you can seek the help of undergraduate students or your fellow classmates. If you have ambitious plans and looking forward pursuing a career as an economic advisor for the next president, it is better to find a tutor who has a PhD or who is a professional economist. They will be able to help you with every aspect of that subject.

• Identify your weaknesses – Economics is a complex subject that comprises both social science and mathematics, which are subjects that appear to be diametrically opposed. Not every student can maintain a solid understanding of both subjects. Some students might be good at the psychological part but may have poor mathematical aptitudes. Such students should thus find tutors who specialize in econometrics or mathematics.

An economics tutor can help the students in better comprehension of economics, from theory to analysis. They can help in high school, graduation programs, post-graduation, or in PhD economics courses. Keep in mind the above tips before finding an economics tutor.

16 Dec Why study economics?

Economics is one of the most popular subjects for art students. It helps them understand the real-world economy, such as businesses, markets, and government strategies. The study of the subject also helps them to better respond to the threats and opportunities that arise during changes in the nation.

Many experts of economics are positioned in places of authority to analyse and solve various problems related to law, risk, management, actuary, finance, foreign affairs, public administrations, politics, policy analysis, health administrations, entrepreneurship, market analysis, and journalism. Economics also enables students to explore multiple career options in the future.

Some exclusive reasons for studying economics are given below:

1. Prepares you for new changes – The wideness and flexibility of the subject’s degree prepares students for many unexpected changes in the world. It also teaches them how to capitalize on these fortuitous opportunities. 
2. Provides you with the necessary knowledge and skills for employment – Economics is all about how an individual can make the best choices for their career as well as for society. This subject develops critical thinking abilities and skills to solve different types of problems through rational decision-making. Economics students often possess good analytical skills that enable them to accurately examine data. According to the study of NACE (National Association of Colleges and Employees), employers of today’s world often look out for the skills of economics, such as the abilities to make decisions in critical situations, to solve problems, to obtain and process information, to analyse data, and to communicate clearly. 
3. Ensures that you have a bright future – The study of economics enables students to have a greater understanding of decision making, market functionality, how rules of the market affect the outcomes, and most importantly, how the country’s economics influence the social system. Economics has helped countless people to achieve success in their work-life as well as in their personal life. Many economists enjoy a relatively high starting salary which is the indicator of long-term success and lifetime earnings. 
4. Allows you to contribute to the greater good – Economics provides the framework of analysis of public policy, which helps students better understand fundamental policy issues that give structure to the market and their social outcomes. A good economist is capable of understanding the problems related to tradeoffs, benefits and costs of businesses, market failure, public finance, and the immense difficulties caused by generational impacts, welfare impacts, and inequality. Students equipped with the skills of economics are also good with language skills and can engage more efficiently in public policy debates to enable social progress. 

16 Dec Should I take a business or economics degree?

Many students find themselves at crossroads choosing between economics or business administration as a university degree. However, this decision leads to a bright future for the students.

Economics and business degrees are both important and have their own strengths in their respective fields. Both subjects give students competitive job opportunities, though their academic focus and coursework offer different job opportunities for post-graduates.

Job opportunities for an economics degree 

Students with economics degrees are most suited to jobs that involve mathematical and statistical analysis. Many hold positions in banks or as junior market analysts. Other job opportunities for economics students are:

• Economists – Economists assess data, identify trends, and make predictions of the future economy.
• Market analysts – Analysts of the market enhance sales and determine pricing levels by accurately predicting competitors’ data. 
• Economic consultants – Consultants support organizations by constructing custom reports, and making market suggestions and fiscal policy recommendations. 
• Day traders – Day traders gain profits by purchasing and selling securities without holding them for a long time. 

Job opportunities for a business degree

Graduates with business degrees can serve a wide range of careers and organizations in the following positions:

• Accountants – Accountants create financial reports and prepare tax documents by reviewing the financial records and budgets.  
• Organizational managers – Corporate managers aid the company by leading teams, planning projects, and managing resources. 
• Actuaries – Actuaries calculate financial risks by using their mathematical and statistical skills. 
• Marketing manager – The marketing manager’s job is to run advertising campaigns, establish connections with consumers, and create messages that increase the sales of products and services. 

Economics or Business: Which one is the right subject for you?

Deciding between an economics and a business degree is tough, as they both offer fast-paced challenges, high salaries, and are multifaceted. For students capable of working with complex ideas, economics is likely the better choice, as economics subject is the perfect blend of mathematical skills with psychological skills. If you are looking for a more comprehensive education line, you should go for a business degree.

Either way, students can use their skills to catalyze the success journey of any company, government, or organization.

17 Nov Explaining price rigidity using the kinked demand model

Just like firms in any other market structure, the oligopolist produces at quantity where MR=MC to maximise profits. But, the MR curve corresponding to the kinked demand curve is discontinuous at output OQ₁ and this discontinuity is represented by the vertical gap. Consequently, there is no single point of intersection between the MR and MC curves. This means that an oligopoly’s costs must change considerably before it is forced to alter its output or price i.e. producers will remain status quo if costs vary between MC₁ and  MC_3. Thus, if the initial marginal cost curve is assumed to be at MC₁, then a rise in costs to MC₂ or even MC₃ would result in no change in price and output i.e. prices remain rigid.

Limitations

The kinked demand model has its limitations though. Price rigidity may also be due to other factors, besides the explanation provided by the model. The kinked demand curve helps to explain why oligopoly prices are stable even without collusion among firms. But, it does not explain how the existing price OP₁ is arrived at. However, price increases do occur as they did during the inflationary periods of 1970s and early 1980s in the advanced economies. Similarly, the retail petrol stations have recently been hiking pump prices in response to escalating oil prices.

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