Concentration ratio refers to the market share of the largest firms in an industry. For example, a five-firm concentration ratio of 65% means that the five largest firms have more 65% of market sales. If the concentration ratio increased, then one or two firms may start to dominate the market and the firms will be …
Although controversial, what are the potential advantages of privatising public services? Firstly, privatising means outsourcing of public services to the private sector. For example, this might include Competitive tendering – where private companies are allowed to bid for the right to provide meals for hospitals. NHS outsourcing treatment to private hospitals. To deal with waiting …
A few selected AS macroeconomic essay questions – with suggested answers. Q.1 Evaluate policies that the government can use to increase the rate of economic growth. Q.2 Discuss the importance of supply-side policies in improving the performance of the UK economy? Q.3 Explain Causes of Inflation Q.4 Explain the reasons for the changes in unemployment in …
The Common Agricultural Policy (CAP) is a European policy which involved: Setting minimum prices for many agricultural products Setting import tariffs to protect from cheap imports EU purchases of surplus food to maintain minimum prices Since 2005, farmers have been subsidised through Single Farm payments (SFP) and rural development funds The impact of minimum prices …
Definition The Balance of Payments shows a countries transactions with the rest of the world. It notes inflows and outflows of money and categorises them into different sections. The two sections of the Balance of Payments are: Current Account. – Trade in goods/services/investment incomes/transfers) Financial (Capital) account. – Foreign direct investment, capital flows, portfolio investment Balance …
Definition of Buffer Stock Scheme A buffer stock scheme is a government plan to stabilise prices in volatile markets. This requires intervention in buying and selling. Prices for agricultural products are often volatile because: Supply can vary due to the weather. Demand is inelastic Supply is fixed in the short term See: Why are prices …
Readers Question: Can you please discuss the nature of the current account deficit and the exchange rate in the UK along with the theory that would suggest there is a relationship between the exchange rate and the current account. A current account deficit implies the value of imports of (goods/services/investment incomes) is greater than the …
Readers Question: How is Japan able to run a national debt of nearly 240% of GDP? (from: List of National debt by Country) In 2017, Japanese public sector debt rose to one quadrillion yen ($10.28 trillion) representing 239% of GDP. This compares to 2013, when government debt was 227% of GDP. This is significantly …