A zero-sum game is a situation where one party benefits at the equal cost of another. If we add gains and losses the net benefit will always be zero. If two players have an arm wrestle challenge, there can only be one winner and one loser. It is not possible to arm wrestle and both …
Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (AD) (economic growth too fast) or cost-push factors (supply-side factors). Summary of the main causes of inflation Demand-pull inflation – aggregate demand growing faster than aggregate supply (growth too rapid) Cost-push inflation – For …
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 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 …
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 …
Over the course of history, the world has seen rapid population growth. It has enabled a rich diversity of culture, technology and improved living standards. However, population growth is increasingly coming at a cost – in particular to the environment. High population levels are contributing to the depletion of natural resources and causing widespread pollution. …
A look into the effect of higher oil prices on economies, firms and consumers. Effect of Higher Oil Prices on the EconomyWatch this video on YouTube Readers Question: With oil prices rising towards $100, what are the economic effects of rising oil prices? In the short term, higher oil prices will lead to higher …