Countries across the world are ageing. We are living longer but birth rates are falling faster than expected. The UK will soon see more elderly people than young adults. It is the same in the US with older adults more numerous than children by 2035. The population of Europe is forecast to fall by 175 …
In the UK, house prices have shrugged off both the credit crunch and the longest recession on record. After a blip in 2007-08, house prices are at record levels. It means that UK house prices are relatively very expensive; UK house price to earning ratios are amongst the highest in the developed world. Unfortunately, there …
Flexible Labour Markets mean that the labour markets quickly adjust to a competitive equilibrium. Flexible labour markets involve factors such as: Easy to hire and fire workers. Labour is occupationally and geographically mobile. Government intervention does not distort the market. Characteristics of flexible markets A skilled workforce which can adapt to changing requirements. Flexible hours and …
Microeconomic topics Consumer and producer surplus Demand Substitute goods Complements Economies of scale Elasticity Price elasticity of demand Cross elasticity of demand Income elasticity of demand Price elasticity of supply Market equilibrium Production possibility frontiers Positive and normative statements Opportunity cost Specialisation and division of labour Market failure Positive externalities – the benefit to a …
The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through: Price capping – limiting price increases Regulation of mergers Breaking up monopolies Investigations into cartels and unfair practises Nationalisation – government …
Readers question: Are subsidies more effective than minimum prices when supporting farmers? Subsidies involve governments giving money direct to farmers. A minimum price is when the government ensures a legal price that prices cannot fall below that level. Minimum prices will increase incomes for farmers. Farming can see volatile prices because supply can vary and …
The World Trade Organisation (WTO) is committed to improving free trade amongst its member countries. However, its role has been controversial – creating polarised views. These are some of the criticisms of the WTO Free Trade benefits developed countries more than developing countries. It is argued, developing countries need some trade protection to be able …
The World Trade Organisation is responsible for dealing with the rules of trade between nations at a global or near-global level. The WTO helps to resolve conflicts between nations and provide forums for agreeing over trade agreements and their implementation. The aim of WTO is to help trade flow as freely as possible, except where …