Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [economics]

To be used for general economics questions that are in some way related to personal finance, the subject of this site. Avoid asking questions that are speculative in nature, academic, or unrelated to personal finance.

157 questions
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In a competitive market, why is movie theater popcorn expensive?

I have seen some arguments claim that movie theater popcorn is expensive because the theater acts as a monopolist. However, this is only true after I have paid for a movie ticket. Before entering the theater I can choose among theaters and compare…
Ram Ahluwalia
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At what point do index funds become unreliable?

Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index funds are recommended over actively managed funds,…
henning no longer feeds AI
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What (if any) is the reason to buy in small local stores?

Recently I have heard movements from the local stores (say clothes, electronics, foods, etc) and some politicians (of a particular wing) that argue that you should buy in local, small stores. Appealing to a feeling of nostalgia, they say those…
mrbolichi
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Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
user454
40
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10 answers

Why do governments borrow money instead of printing it?

This question is raised in the movie Money as Debt (at time index 29:00). The answer that immediately pops to my head is "because printing money causes inflation". However, according to this movie, money is created not only by printing it but rather…
ripper234
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Where does the value of money go during inflation?

I was wondering if I put $1000 in the piggy bank for a year and the inflation being 10%, and everything else being constant, 1 year later that $1000 in cash money can only buy goods that today would cost me $900. So my question is: where did that…
user1070087
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How exactly are exchange rates determined?

I was reading about how the exchange rates are fixed. I understand that demand and supply decide the exchange rate but how exactly is it done and by whom? For example, consider US and…
vikrant
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10 answers

Do you lose money if you don't use a plane ticket you won in a raffle?

My wife won 2 tickets from a major airline at the company she works for, after they did a employee only raffle that was free to enter. The problem: there is a caveat: the ticket must be booked for a trip no later than December 15 this year (for…
webyacusa
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Is the stock market a zero-sum game?

In the stock market, over both the short and long-term, does someone necessary need to lose in order for someone else to make a profit? If not, then more fundamentally does something — in the most abstract sense — need to lose value in order for…
TheEnvironmentalist
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Should I ask the seller of a house for a price reduction given a recession is almost certain?

I've gone sale agreed (note: "sale agreed" means the sale has been agreed in principle - no contracts have been signed, no non-refundable deposits have been made etc.) on a house. The market I'm currently in was extremely competitive, houses were…
TomSelleck
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Prices go up and salary doesn't: where goes delta?

I'm not sure that question is appropriate here, if it is not I will delete it. Question: I heard that in USA prices are rising, but salaries are not. This looks strange to me. It means that companies get more money for selling stuff and services,…
Andrey
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Why are interest rates on saving accounts so low in USA and Europe?

For example, in USA interest rates are 1-2% percents, while in Russia it is normal to have up to 8% anually for US dollars account. Same goes for Euro. For Russian ruble it can be up to 12%, but with 10% annual inflation it is the same effectively.…
Andrey
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Does gold's value decrease over time due to the fact that it is being continuously mined?

As one can see here ( How fast does the available amount of gold in the world increase due to mining? ), available amount of gold is increasing. That sounds similar to printing more money. I suppose demand is growing even more right now, but is it…
Enno Shioji
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Why is so much focus put on the Dow Jones Industrial Average?

The Dow Jones Industrial Average is derived from the sum of the stock prices of 30 large-cap companies, divided by the Dow Divisor which, at the moment is actually a multiplier. It's mostly NYSE properties, with a handful of NASDAQ…
Dancrumb
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Why is everyone saying how desperately we need to save money "in this economy"?

Everywhere you turn today, you hear people talk about how much they need to save or how important it is to find a good deal on things "in this economy". They use phrases like "now more than ever" and "in these uncertain times". It seems to be a lot…
Jeffrey
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