Impact of increase in female labour market participation

Impact of increase in female labour market participation

A look at the economic impact of an increase in the supply of female workers in labour markets. In summary: Increased female labour market participation will lead to increase in supply of labour, and in theory, could lead to lower wages. However, a gradual increase in female labour market participation is often in response to rising demand for certain jobs, and is consistent with rising real wages. The increase in female labour market participation can also increase labour market flexibility and impact income distribution with society. History – Female labour market participation The…

What is needed for specialisation?

What is needed for specialisation?

Readers Question: Why does specialisation necessitate an efficient means of exchanging good and services, such as the use of money as a medium of exchange? Specialisation in the labour market means workers concentrate on specific jobs. Rather than learn every trade – electrician, plumber, manager, doctor, teacher – it is more efficient and practical if we specialise in one particular job. However, if we were just a barter economy – without money. This specialisation would be a lot more difficult. If I grew potatoes and you kept chickens – we could swap…

What is the optimal quantity of beer to drink?

What is the optimal quantity of beer to drink?

Question number 3 from What would Keynes do? – If I enjoy drinking beer. How much should I drink? Key quote “My only regret in life is that I did not drink more champagne.” John Maynard Keynes.If something is good to do – does it mean it is good to do it to excess? This question allows us to consider various economic conceptsRational choice theory Are consumers rational? What is a demerit good -…

Evaluation for Micro Economics

Evaluation for Micro Economics

Evaluation is the ability to look at issues from a critical perspective; to look at other potential outcomes. Evaluation questions will typically begin with words like, discuss, evaluate, to what extent, assess. These are some ways to get evaluation marks for microeconomics. (note there are potentially more ways to evaluate but this gives a few ideas)1. Elasticity. e.g the effect of a tax increase depends upon the elasticity of demand. If demand for cigarettes is inelastic, a tax will be relatively…

What is the difference between inflation and tax?

What is the difference between inflation and tax?

Readers question: What is the difference between tax and inflation? Tax is a way for the government to raise revenue. It includes charges placed by the government on goods/income. For example, VAT is a tax which means consumers have to pay an additional 20% of the price in the form of tax which goes to the government.Inflation means a rise in living costs – a rise in the price of living. It is measured by Consumer Price Index (CPI). The inflation…

Capital Flows – Benefits and Disdavantages

Capital Flows – Benefits and Disdavantages

Readers Question: According to my syllabus I need to be able to evaluate the role and the benefits and disadvantages of capital inflows from MNC’s in an EU context. Could you give me a hand? Capital inflows from Multi-National Companies (MNCs) refer to inward investment from MNC into European economies. Capital flows can also involve the purchase of assets, such as property, assets and government bonds. The effect of these capital inflows involves increased levels of Investment. MNCs inject investment into the economy. This causes several benefits for the economy. 1. Increased Aggregate…

Kant, Keynes and Kierkegaard

Kant, Keynes and Kierkegaard

I was amused to see in Oxford Blackwells my new economics book in between the great philosophers Immanuel Kant and Søren Kierkegaard. I’ve always fancied myself as something of a philosopher. But when I studied PPE at Oxford University, I was hopeless at western philosophy. I couldn’t read a page of Kant for love nor money. One of the few rebellious things I’ve done in life was when I worked out you could more or less fail philosophy, but still…

Balanced and unbalanced economic growth

Balanced and unbalanced economic growth

What do we mean by balanced economic growth? Also, is it important for an economy to promote a balanced approach to growth? A balanced economy suggests that economic growth is sustainable in the long-term, and the economy is also growing across different sectors – and not focused on one particular industry or area. A balanced economy has several key features.Low inflation – avoiding an unsustainable boom and bust period of economic growth. A balance between saving and consumption. An unbalanced economy would consume a  high % of income. A…