Question number 2 from What would Keynes do? – Should I park in an illegal parking space and risk a fine? Key economist – Gary Becker “I calculated the likelihood of getting a ticket, the size of the penalty, and the cost of putting the car in a lot. I decided it paid to take the …
Since the 1980s, UK train travel has increased sharply. Despite above-inflation price increases, demand for travel by train continues to grow. This is due to several factors including – economic growth, congestion on roads, higher rents in city centres, causing more demand for commuting. Three interesting graphs from Social Trends vol 40. Source: Office of …
With my new book – What would Keynes do? – The brief was to write essays on how famous economists would respond to everyday questions. So for example, for the question – Is it OK to be selfish? I examined how the likes of Adam Smith, Karl Marx, Arthur Pigou and Alfred Marshall might answer this …
A minimum price for alcohol means that alcoholic drink cannot be sold below a certain price. It is aimed at preventing the sale of very cheap alcohol by supermarkets. The hope is that a higher price will discourage binge drinking, improve health, and make people pay a price closer to the true social cost of …
What would be the impact of the US placing a tariff on the import of steel and aluminium into the US A tariff on imports of foreign steel would raise the price of imported steel and encourage US firms and consumers to buy domestically produced steel instead. At the moment, American producers find it cheaper …
What Would Keynes do? This is a book which examines how famous economists might answer 40 different everyday questions about life What Would Keynes Do? will help you get to grips with economic theories in an original and thought-provoking way. *** The book was a lot of fun to write as it involved examining a …
A trade deficit occurs when the value of imports of goods and services is greater than the value of exports. For example, in 2016 the US exports totalled US$ 1,450,457 million. Imports totalled US$ 2,248,209 million. (WITS) Source: Trade balance at St Louis Fed. Since 1990, the US has run a persistent trade deficit. The …
A Customs Union occurs when a group of countries agree to have free trade amongst themselves and agree on a common external tariff to countries outside the zone. It is a step towards a single market, but a customs union doesn’t include freedom of movement for people and goods. A customs union is often examined …