The UK economy in 2016 is emerging from a long period of economic stagnation and the recession of 2008-12, and has some positive signals of growth, low inflation and falling unemployment. However, the UK chancellor has been giving mixed signals. On the one hand he has pointed out that UK has one of the strongest …
Advertising is an invasive aspect of modern society. It is hard to look around without coming across advertising. In a way, advertising leads to deadweight welfare loss. The money spent on advertising goods does not increase their quality, nor does it increase the number of goods and services in the economy. However, it does cost …
Definition of investment: Investment is the addition to Capital Stock of the economy – e.g. factories, machines, or any item that is used to produce other goods and services Note saving money in a bank is not investment in economic terminology The value of capital stock depreciates over time as it wears out and is …
Definition: Aid involves economic assistance from one country to another. Usually, aid refers to assistance from the developed world to LDCs – less developed countries Aid can take various forms: Debt Relief – Forgiving debt can save LDCs annual interest payments and leave them more resources for internal investment Direct AID- giving food, money and …
The government is committed to reducing government spending as a % of GDP to 35% – one of the lowest percentages since the 1930s. However, despite very strict government spending limits, (which see some departments spending cut by 30%), the government are still committed to a triple lock guarantee for pensioners. The triple lock guarantee …
Readers Question: Does anyone know if it is still true that £120bn is lost through tax avoidance/evasion. There is a big difference between tax avoidance and tax evasion Tax avoidance involves legal means to reduce your tax bill. Tax evasion involves illegal means to reduce your tax bill. Examples of Tax Avoidance A perfectly legal …
Product failure is when a new product is launched but fails to gain sufficient sales and market sales, resulting in a net loss for a firm. To understand product failure, it is good to look at a few examples of product failure. (Top 20 product failure here) Some of these examples, give very simple methods …
October 2015 will see England introduce a charge of 5p for plastic bags. Early evidence from Scotland suggests that a tax on plastic bags can lead to a significant fall in demand. Supermarkets in Scotland reported an 80% fall in use of plastic bags a month after the charge was introduced. (Times). A study in …