A-Level

UK Inflation Rate and Graphs

UK Inflation Rate and Graphs

Current UK Inflation Rate CPI inflation rate:  0.1% (headline rate) CPI – D7G7 at ONS (page updated 10 Jan, 2016) Source: Raw data General inflation tables | CPI annual % change D7G7 at ONS Other measures of inflation RPI = 1.1% Nov 2015 (RPI index CZBH) RPIX =1.1% (RPIX – CDKQ) CPIH = 0.4% (CPIH – L550) Updated 10th Jan, 2016 See: Measures of inflation What is causing low inflation? Lower cost push inflation – falling oil prices. Other commodity prices also falling,…

UK unemployment-rate

UK Unemployment Stats and Graphs

A selection of graphs and statistics on UK unemployment (currently 5.5%). Also, looking at factors that explain UK unemployment and why unemployment has fallen in recent years. Raw data:  Labour market data | Source: ONS LF2Q Current UK Unemployment rate Unemployment rate of 5.5%, (July 2015) –  down from 6.2% July 2014 1.82 million unemployed people- 198,000 less than July 2015 Employment rates Employment:  31.09 million people in work – 22.74 million full-time. 8.36 million people working part-time Participation rate Inactivity rate (the…

Economic Growth UK

Economic Growth UK

Economic growth measures the change in real GDP (national income adjusted for inflation; ONS call it chained volume measure of GDP) In 2014 the UK economy grew by 2.4% –  (compared to 1.7% in 2013. GDP was 2.6% higher in Quarter 2 (Apr to June) 2015 compared with the same quarter a year ago. The peak to trough fall of the economic downturn in 2008/2009 is now estimated to be 6.0% In 2013, GDP at market prices was £1,713,302 million (£1.7 trillion) Updated September 14th, 2015 Recent UK Economic Growth

UK Government spending – real and as % of GDP

UK Government spending – real and as % of GDP

In 2013/14 the UK government is forecast to spend a total of £ 722.9 billion – nearly double 2000/01 spending of £359.6 billion Source: ONS Public Sector Finances MF6U – October 2014 Government spending as % of GDP Updated Forecasts of Government spending from Autumn Statement of Dec. 2014 Source: OBR, Dec 2014 Note 2013/14, government spending as…

The battle for market share in UK supermarkets

The battle for market share in UK supermarkets

The UK grocery market has become increasingly competitive in the past few years. It is a good example of an oligopoly becoming more competitive. Certainly the growing strength of discount giants like Aldi and Lidl have really shaken up the market and diluted the cosy oligopoly previous enjoyed by the likes of Tesco and Sainsbury. To further add interest, Pound shops are also gaining market share and nibbling away at the margins of the big supermarkets. For consumers it is largely good news…

placeholder

Discuss why firms grow in size

Most firms seek to become bigger – increasing sales and market share. Firms can grow through internal expansion, external growth (merger) or diversification into related industries. The motives for increasing in size can include: Greater sales lead to greater profit, making the firm more attractive to shareholders Successful, growing firms are likely to increase salaries / pay bonuses to managers. Increasing output enables economies of scale, greater efficiency and lower average costs. Increased prestige for managers seeing the firm become more influential and powerful. Greater risk diversification, e.g. when growth comes from product diversification. Growing…

The economic effects of cheaper solar power

The economic effects of cheaper solar power

In recent years the cost of producing solar energy has fallen dramatically. Discuss the economic effects of cheaper solar power on the energy industry and wider economic welfare. Solar power is an alternative energy source to coal and natural gas. Solar power also has a significant environmental advantage over traditional fossil fuels. It is renewable. there is no danger of running out. It does not cause pollution. There are no CO2 and other emissions created from solar power. Solar power has significant positive externalities. Switching…

Examples of Elasticity

Examples of Elasticity

Price elasticity of demand measures the responsiveness of demand to a change in price. see: Price elasticity of demand Price inelastic – a change in price causes a smaller % change in demand. Price elastic – a change in price causes a  bigger % change in demand. Examples of price inelastic demand We say a good is price inelastic, when an increase in price causes a smaller % fall in demand, e.g. if price of petrol falls 30%, but demand for petrol…