In terms of public spending, a deficit is the annual shortfall between spending and tax revenues. Debt is the total amount outstanding to holders of the government’s debt. Definition of deficit and debt Deficit refers to the annual borrowing requirement of the government. (often referred to as budget deficit – or annual net borrowing) Debt …
Economic growth means an increase in real output (real GDP). Therefore, with increased output and consumption we are likely to see costs imposed on the environment. The environmental impact of economic growth includes the increased consumption of non-renewable resources, higher levels of pollution, global warming and the potential loss of environmental habitats. However, not all …
The most common method for measuring living standards is using GDP per capita. This is national income divided by population and gives a rough guide to average incomes. High real GDP per capita indicates citizens are able to purchase more goods and services. World Map of GDP per Capita GDP per Capita. Source: Source: IMF …
In the post-war period, the UK labour market has seen many fundamental changes. In particular, we have seen a decline in full-time manual labour manufacturing jobs, and a growth in labour market flexibility. The current labour market is more diverse with more people working in self-employment, part-time jobs, zero hour contracts. De-industrialisation Since the early …
Some potentially common mistakes in economics. 1. Confusion of rates of change and actual levels What happened to the UK price level between May 2011 and Feb 2015? The answer is that prices rose at a slower rate. There was a fall in the inflation rate. Prices were still rising just at a lower rate. …
The Housing Market refers to the supply and demand for houses, usually in a particular country or region. A key element of the housing market is the average house prices and trend in house prices. Definitions related to housing market UK nominal house prices – actually monetary value – not adjusted for inflation Real house …
A carbon tax aims to make individuals and firms pay the full social cost of carbon pollution. In theory, the tax will reduce pollution and encourage more environmentally friendly alternatives. However, critics argue a tax on carbon will increase costs for business and reduce levels of investment and economic growth. The purpose of a carbon …
Readers Question: What does the Government spend its money on? The government spends money for a variety of reasons: Reduce inequality (welfare payments like unemployment benefit). Provide public goods (fire, police, national defence) Provide important public services like education and health (merit goods) Debt interest payments. Transport Military spending UK public sector spending 2023-24 …