Definition An economic good is a good or service that has a benefit (utility) to society. Also, economic goods have a degree of scarcity and therefore an opportunity cost. This is in contrast to a free good (like air, sea, water) where there is no opportunity cost – but abundance. Free goods cannot be traded …
A list of some modern-day protectionist measures, including tariffs, domestic subsidies to exporters, and non-tariff barriers which restrict imports. Types of Protectionism Tariffs – This is a tax on imports. Quotas – This is a physical limit on the quantity of imports Embargoes – This is a total ban on a good, this may be …
Definition The observation that some goods (e.g. water) which are more essential to human life can be cheaper than non-essential goods (e.g. diamonds) Paradox of value – Economics explainedWatch this video on YouTube Explanation The paradox of value examines why goods that are not essential to life can command a much higher price than goods …
Definition – Supplementary goods are two goods that are used together. For example, if you have a car, you also need petrol to run the car. If you have a tv, a supplementary good would be an Amazon widget which allows you access to a much greater range of tv programmes. Examples of supplementary good …
The fundamental economic problem is the issue of scarcity but unlimited wants. Scarcity implies there is only a limited quantity of resources, e.g. finite fossil fuels. Because of scarcity, there is a constant opportunity cost – if you use resources to consume one good, you cannot consume another. Therefore, an underlying feature of economics is …
Degrowth is a political and economic theory which emphasises changing priorities of society from economic growth and production to a society based on sustainability, well-being, concern for environment and co-operation. The motives for pursuing degrowth include the need to provide environmental sustainability for the long-term and improve quality of life. Critics argue degrowth is a …
Price gouging is a situation where business take advantage of an external crisis to charge excessive prices for basic necessities – selling the goods significantly above their usual price. Many countries have laws against the practise of price gouging – to protect consumers against unfairly high prices during a national emergency. Example of price gouging …
SWOT analysis is looking at a businesses – strengths, weaknesses, opportunities, threats. SWOT analysis is useful for a business looking at strategic planning for the future. How can the firm survive, grow and remain relevant. Examples of strengths Current profitable orders. Existing brand loyalty and brand recognition Loyal customer base Mailing list and details of …