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Government Policy and Supply of Housing

Suggest various ways in which the supply of houses could be increased in an economy and in particular, explain how governments could help the process? The UK housing market suffers from a shortage of supply. Last year, there was a record low in the number of houses being built. These are various policies to help increase the supply of houses. 1. Loosen Legislation about building on Green belt land. The government can make it easier for property developers to build on land protected by the environment. This makes it much easier to…

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Could UK economy enter into a Recession?

In many ways the economy is in a good position. The main economic indicators suggest a strong and sustainable economy, which offer good prospects for 2008.Economic growth, at 2.6% is close to the long run trend rate. Unemployment, according to JSA measure, is under 1 million. At 3% of the labour force this is fairly close to full employment. (although the more reliable Labour force survey suggests the true level of unemployment is higher. CPI Inflation is 2.1%. This is almost exactly the government’s target of 2% +/-1The main economic predictions…

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Reasons for Chinese Economic Growth 2000-2007

Readers Question: What is the most important reason why there is an improvement in the economic growth in the chinese out of the following policies. is it Government policy, education, investment from overseas, cheap labour or natural resources. 1. Cheap Labour China has a large unskilled workforce willing to work for low wages. In the north many farmers struggle to make an income, therefore, they are willing to move south and work in manufacturing for low wages. Therefore, despite high growth, wages have remained low. This has meant Chinese exports have…

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Cost Benefit Analysis for New Airport

Discuss the difficulties of using Cost Benefit Analysis in deciding whether to build a new international airport. A Cost-Benefit analysis involves examining whether society will benefit from building a new airport. Therefore, the government need to calculate all the social costs and social benefits. This includes calculating private costs and external costs, as well as all the private benefits and external benefits. Difficulties include 1. Placing a monetary value on external costs and external benefits For example, an external cost of a new airport is increased pollution from more flights. However, the exact…

Should we increase tax on cars?

Should we increase tax on cars?

Readers Question: over the next 10 years, should the government make greater or lesser use of measures such as road pricing or taxes on fuel to reduce road use? In the UK, road use creates many external costs. This includes increased pollution, congestion, and accidents. Therefore, the social cost of driving is greater than the private cost. In a free market, this leads to over-consumption, (people ignore external costs when deciding whether to drive). This causes economic costs such as lost output due to congestion. Therefore, there is a good…

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Funny Typos in Interview Letters

“I have a graduate degree in unclear physics.” (I never understood physics either) “I worked for 6 years as an uninformed security guard.” (ignorance is bliss) “My last role was a plumbing and hating specialists.” • “The academic scholarship I earned came with a plague.” (the cost of university is really too high these days) • “Most of my experience to this point has been as a blue-color worker.” (was it very cold) • “As part of the city maintenance crew, I repaired bad roads and defective brides.” (I’m sure you had your work…

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Why House Prices in the UK are Falling 2008

The state of the UK housing market seems to get as much coverage in the newspapers as just about every topic, bar the latest escapades of Britney Spears driving through a traffic light. From inches of press coverage, it appears that a fall in the rate of UK house price inflation is vastly more significant than a cyclone in Bangladesh, claiming the lives of 10,000 people. Anyway, the evidence does suggest the housing market is slowing down. With several reports showing a fall in house prices in recent months. The first…

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How Much Would You Pay for Cigarettes – $222?

When we buy a packet of cigarettes for $8, we may think that this is the personal cost. But, a new study claims the real personal and social cost of smoking a pack of cigarettes is closer to $200. pdf of report – Report by Kip Viscusi and Joni Hersch To arrive at these statistics they look at the likelyhood of early death from cigarettes. Smoking is generally assumed to reduce life expectancy by a number of years. However, smoking can also reduce quality of life, from an early…