A-Level

UK Inflation Rate and Graphs

UK Inflation Rate and Graphs

Current UK Inflation Rate CPI inflation rate: 0.0% (headline rate) (page updated 25 March, 2015) Source: Raw data General inflation tables | CPI annual % change D7G7 at ONS What is causing the fall in inflation? Lower cost push inflation – falling oil prices Other commodity prices also falling, such as metals, food. Lower energy prices – gas and electricity Low worldwide inflationary expectations. Europe is experiencing deflation and this is keeping inflation low. Supermarket price wars, with big chains, such as Tesco and Sainsbury attempting to maintain…

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…

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 2013 – annual GDP in volume terms increased by 1.7% in 2013. In the past 12 months – between Q2 2013 and Q2 2014, GDP in volume terms increased by 3.2% 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 October 6th, 2014 Recent UK Economic Growth

UK unemployment-rate

Unemployment Stats and Graphs

A selection of graphs and statistics on UK measures of unemployment. Also, looking at factors that explain UK unemployment and why unemployment has fallen in recent years. Current UK Unemployment rate Unemployment rate of  6.2%, (July 2014) –  the lowest since late 2008. (page updated Sept 18th, 2014) 2.02 million – (ONS)  (a fall of 468,000 since 12 months ago – biggest fall since 1988) (Scottish unemployment of 6%) Average Eurozone unemployment – 11.5% Recent Unemployment Trends

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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…