The Labour Party has announced a policy to nationalise full-fibre optic broadband provision and offer free broadband to every UK home. It is an ambitious policy which would involve costs of £20-£40bn to purchase Openreach from BT (Labour suggest £20bn, BT, £40. Do the benefits of nationalisation outweigh the costs? Arguments for nationalisation External benefits …
Readers Question: What is the role and function of price in the economy? The price of goods plays a crucial role in determining an efficient distribution of resources in a market system. Price acts as a signal for shortages and surpluses which help firms and consumers respond to changing market conditions. If a good is …
In 2008, Zimbabwe had the second highest incidence of hyperinflation on record. The estimated inflation rate for Nov 2008 was 79,600,000,000% That is effectively a daily inflation rate of 98.0. Roughly every day, prices would double. It was also a time of real hardship and poverty, with an unemployment rate of close to 80% and a …
An economic shock is a negative event affecting the economy it can involve Demand-side shock Supply-side shock Global shock Loss of confidence in the currency and banking system. Policies to deal with economic shocks include Monetary policy – to reduce inflation or boost economic growth Fiscal policy – higher government borrowing to finance higher government …
Third Degree Price Discrimination involves charging a different price to different groups of consumers for the same good. These groups of consumers can be identified by particular characteristics such as age, sex, location, time of use. In the real world, third-degree price discrimination is quite common. For a firm to practise price discrimination it requires: …
Definition: Trade barriers are government policies which place restrictions on international trade. Trade barriers can either make trade more difficult and expensive (tariff barriers) or prevent trade completely (e.g. trade embargo) Examples of Trade Barriers Tariff Barriers. These are taxes on certain imports. They raise the price of imported goods making imports less competitive. Non-Tariff …
A typical supply curve shows an increase in supply as wages rise. It slopes from left to right. However, in labour markets, we can often witness a backward bending supply curve. This means after a certain point, higher wages can lead to a decline in labour supply. This occurs when higher wages encourage workers to …
This is a list of suggested economics reading which will help give a better understanding of the subject. It includes quite a range of perspectives from the ‘debunking of economics and free markets’ to Milton Friedman’s passionate defence of the free market. Whatever their perspective they all can add to our understanding. 50 Economics Ideas: …