Sustainable economic growth implies that the growth rate can be maintained over the long term. Sustainable growth involves both Environmentally sustainable growth – e.g. not exploiting scarce resources. Sustainable growth in terms of low inflation and a balanced economy. Sustainable economic growth The long-run trend rate of economic growth is the rate of economic growth …
Definition: Marginal revenue (MR) is the additional revenue gained from selling one extra unit in a period of time. Marginal revenue (MR) = Δ TR/Δ Q If a firm sells an extra 50 units and sees an increase in revenue of £200. Then the marginal revenue of each extra unit sold is £4 Example of …
The world economy is already entering a very deep recession, with GDP falling by an estimated 20-25%. Unemployment will rise very fast as large parts of the economy close down. An optimistic assessment is that the economic shock will be short-term, policymakers are responding with as much monetary and fiscal help as they can, and …
Readers Question: Undertake an evaluation of the causes of economic instability and the role, if any, that the government can play in reducing economic instability by constraining their discretion in policy making. Economic instability involves a shock to the usual workings of the economy. Instability tends to reduce confidence and lead to lower investment, lower …
Supply and demand illustrate the working of a market and the interaction between suppliers and consumers. Supply and demand curves determine the price and quantity of goods and services. Any changes in supply and demand will have an effect on the equilibrium price and quantity of the good sold. It will also affect the incentives …
Some economists, such as Arthur Laffer, argue that there are circumstances when cutting tax leads to either increased tax revenue or tax revenues stay the same. The logic is related to the incentive effects of tax cuts on productivity and growth. If income tax rates are too high, then workers may be discouraged to work. …
Should visiting a GP doctor be free or should we pay to visit the doctor? It is an emotional issue as in the UK there is a strong acceptance of free health care, but what are the economic arguments? Could we have better health care by charging people to see their GP? Benefits of charging …
Countries with the highest government spending as a share of GDP. The countries with the highest levels of government spending as % of GDP are predominantly Western Europe and Scandinavia in particular. The countries with the lowest government spending as a % of GDP tend to be poor developing economies. The one notable exception is …