Readers Question: Is large government spending bad for economic growth? to what extent does empirical evidence support this assertion? How Government Spending Might Lead to Lower Economic Growth Higher spending leads to higher taxes. Higher income taxes may discourage people from working. High corporation tax might discourage firms from setting up in that country. (e.g. …
Deaths from liver disease have doubled in Britain in recent years while other countries such as France have seen “profound” falls thanks in part to “strict” rules on marketing drink, a strongly-worded article in The Lancet claims. Academics say that total deaths from the “wider harms” caused to society by alcohol could reach 250,000 in …
We tend to assume education is a merit good. – A beneficial good that has external benefits for society. However, another approach to education considers how education acts as a signal of ability. Signalling in education suggests productivity is independent of education, but education acts as a credential for greater ability. In other words, if …
Readers Question: Using data and your economic knowledge assess the case for and against a government completely banning the sale and consumption of cigarettes. AQA (15) 1. Cigarettes are a demerit good. People underestimate the costs of smoking, e.g. lower life expectancy. It has been suggested that the true cost of a packet of cigarettes …
It’s the time of the year when many students are getting to start economics for the first time. It can be a little confusing with so many new concepts and words. But, if we had just one lesson, what could we teach about economics? Society wishes to optimise the distribution of resources. Economics considers how …
The arguments for and against the legalization of cannabis and the taxation of the good by the government. Legalising cannabis and placing a tax on the good has several advantages Advantages of legalising cannabis 1. The Government can raise revenue from the tax. Because demand is likely to be inelastic, the tax revenue could be …
Readers Question: How much money should 18 year old have? I have been thinking about this for a while and was hoping you might be able to shed some light on the subject. Please help. Thank you in advance. There are frequent readers comments about the minimum wage for 16-18 year old Most seem to …
Readers Question: discuss whether economic actions by individuals always results in net benefit to the society “Many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own …