Readers Question: what axioms underlie the theory of consumer behaviour? How reasonable are they? I have the axioms: completeness, transitivity, continuity, non-satiation and convexity. but we have never been taught about how reasonable they are and I can’t find any info anywhere! please help It is an interesting question. I am not really qualified to …
Keynes was one of the great economists of the twentieth century. Even his critics would have to admit he had a certain turn of phrase and wit. These are some of his more memorable quotes The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set …
Readers Question: Is the spectre of inflation the only reason the FED doesn’t simply print the US out of its economic troubles? By print, I mean at least print enough to pay down the debt to a manageable level, or create a major business incentive program using printed cash. Certainly, a big fear of the …
Austerity measures have pushed the UK and European economies back into recession with rising unemployment. But, I often feel that austerity measures are actually quite popular with the electorate. It is true that in Europe recently there has been something of a backlash. The recession has been so severe, voters have started to vote against …
Perfect competition is a market structure with the following features Many buyers and sellers – 1000s of firms. Freedom of entry and exit into the market Homogenous good Perfect information In a way, stock markets are an example of perfect competition. There are hundreds of buyers and sellers. When buying shares you can choose from …
A feature of the UK housing market is the low quantity of new houses built compared to the long term growth in demand. Despite high house prices, firms are unable / unwilling to build as many as market forces dictate. The supply of housing is price inelastic. The lack of supply has meant that the …
Switzerland has many envious economic data. It has low unemployment, low inflation, low government borrowing (budget surplus in 2010). It’s total national debt is a mere 38% of GDP.It has one of the highest GDP per Capita’s in the world $42,600 (2010 est.) CIA Switzerland. Switzerland is a landlocked country and virtually no mineral resources. …
Two alternative views on UK’s debt problem. Debt Hawk Source: ONS The UK has seen a rapid deterioration in its budget deficit. At £146bn (12.5% of GDP) this is the biggest peace time budget deficit on record. (Apart from Greece) this leaves the UK with the largest annual budget deficit in the OECD. Given the …