Costs of production relate to the different expenses that a firm faces in producing a good or service. Types of costs Fixed costs – costs that don’t vary with output Sunk costs – costs that cannot be recovered on leaving industry, e.g. advertising Variable costs – costs relating to how much is produced (e.g. raw …
The idea that a tax should not distort economic behaviour. For example, income tax may influence the number of hours a worker is willing to work. This is an example of a tax that influences people’s behaviour. On the other hand, a poll tax (a lump sum on each adult per year) is non-distortionary because …
Reasons for the economic decline of Italy.
A look at how GDP per capita in $US gives different values when measured at purchasing power parity. GDP at Purchasing Power parity (PPP) takes into account variations in living costs. PPP is an attempt to work out how much currency will be needed to buy the same quantity of goods and services in different …
The past few years have seen a rapid rise in real food prices – especially, fruit, vegetables and meat. At the same time, we have seen falling real incomes for low-income decile groups. The consequence is that those on low incomes have been changing their diet in response to higher prices. With squeezed real incomes, …
Readers Question Is the study of economics irrelevant in the absence of the concept of scarcity? It would make a good interview question. The difficult thing is trying to imagine what a society would be like if it had no scarcity. One thinks of the imaginary desert island, with abundant resources and a lone Robinson …
Casey B. Mulligan, from the University of Chicago suggests a theory for a major cause of the great recession and the rise in US unemployment post 2008. – Higher welfare payments. ..Redistribution, or subsidies and regulations intended to help the poor, unemployed, and financially distressed, have changed in many ways since the onset of the …
Following on from previous posts – How much has government spending been cut – | How was budget deficit cut by 25%?. It will be useful to republish some data from Mainly Macro – on a post UK austerity and some facts UK Cyclically adjusted primary deficit 2010 2011 2012 2013 IMF 2 -6.1 -3.9 …