A public good has characteristics of non-rivalry and non-excludability. This means that once the good is provided, everybody benefits, and if one person benefits it doesn’t reduce the amount available to others. Public health can be seen as a public good. If you take precautions to remain healthy and not pass on Covid, you benefit …
A definition of the law of demand and explanation of why higher price leads to lower demand.
The UK population is projected to increase by 9.7 million over the next 25 years from an estimated 64.6 million in mid-2014 to 74.3 million in mid-2039. (ONS). Approx. 50% of the population increase is expected due to net migration. This is a look at the economic and social impact of a rise in the …
The Balance of Payments is a record of a country’s transactions with the rest of the world. It shows the receipts from trade. It consists of the current and financial account. UK current account 1955-2018 1. Current account This is a record of all payments for trade in goods and services plus income flow it …
The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion. We can look at either an individual demand curve or the total demand in the economy. The individual demand curve illustrates the price people are willing to …
The money supply measures the total amount of money in the economy at a particular time. It includes actual notes and coins and also any deposits which can be quickly converted into cash. There are different measures of the money supply depending on how you count it. Narrow definitions include all the money supply which …
Definition of Concentration Ratios The percentage of market share taken up by the largest firms. It could be a 3 firm concentration ratio (market share of 3 biggest) or a 5 firm concentration ratio. Concentration ratios are used to determine the market structure and competitiveness of the market. For example, an oligopoly is defined when …
Readers Question: What are the types of unemployment? Firstly, we can make a distinction between: Supply-side unemployment (the natural rate of unemployment). These are usually microeconomic imbalances in labour markets. Demand-side unemployment (Unemployment caused by lack of aggregate demand in the economy). In recessions, we can expect demand deficient unemployment (sometimes called cyclical unemployment) to …