Readers Question – what on earth is the black market and how does the immigrant have an impact on that? The black market is a colloquial term that refers to economic activity that is not regulated by the government. It involves economic activity where people don’t declare tax returns or pay VAT e.t.c. It is …
Readers Question “Evaluate the argument that further measures to reduce inequality may have adverse consequences for work incentives ” Measures to reduce inequality include, progressive taxes, means tested benefits and higher minimum wages 1. Higher Income Tax. Increasing the highest rate of income tax from 40% to 50% will make work and overtime less attractive …
If you have exams this afternoon, there isn’t much more revision you can do. What is important now is the right exam technique. These tips may sound like common sense and stating the obvious, but, every year a significant % of candidates make these mistakes and so reduce their grade. Although they may sound obvious …
Readers Question: Discuss the likely economic impact on absolute and relative poverty of China’s rapid economic growth? It is an interesting question because even the Chinese government have been concerned that China’s rapid economic growth has not helped large sections of the population, especially in the north. Absolute poverty is defined as the minimum level …
Readers question: Should the Government intervene to deal with the problem of Oil Shortages or is it better to leave it to a free market? As oil runs out, supply will shift to the left and the price will increase. Because demand is inelastic, oil firms will make increased profits. This creates an incentive for …
The price of oil reached another record high yesterday – $125 Brent Crude oil reached $126 US light crude oil reached $128 before setting back to $127 This means that, even adjusted for inflation, oil is now close to the all time high, last reached in the 1970s. What are the reasons behind the Recent …
Readers Question: What would stop the falling dollar? The dollar has been falling for many reasons. These are some of the factors which would stop the dollar falling and lead to a recovery in the value of the dollar. Higher Interest rates. US interest rates have been cut to 0% in an effort to stave …
Readers Question: Assess the view that supply-side reforms have enabled the UK economy to be ‘more successful in maintaining growth, despite an appreciation in the value of its currency’ (Extract 1, lines 5-6}. (From Edexcel unit 3) An appreciation in the exchange rate would tend to reduce aggregate demand and lead to lower economic growth. …