Readers Question: Why doesn’t WTO make into law that all manufactured goods should either be assembled or made in the continent where its been sold? There is so many reason why this should be put in place in our globalised world I don’t agree. The benefits of a globalised world are that we can benefit …
Readers Question: I was really hoping you might be able to inform me of the effects that zero inflation (which the UK is currently experiencing) might have on aggregate demand in the economy? Firstly, this post will help consider the impact of zero inflation on AD and economic growth – Is zero inflation a good …
Despite high unemployment in the UK, there is a shortage of LGV drivers and it is estimated that the UK will need an extra 150,000 drivers by 2020. In Nottinghamshire, it is estimated that for every nine vacancies there is only one qualified candidate. (link) The average age of a (LGV) Large Goods Vehicle driver …
Recently, the Euro has fallen from 1.5 Dollars to 1 Euro in 2011 to near parity in March 2015. The fall in the value of the Euro has been very steep in the last six months. This is a very significant depreciation in the Euro, and primarily reflects the greater economic weakness in the Eurozone. …
Readers Question: What is the name of a type of good that only has value to someone if no one else possesses it? A snob or ostentatious good is a good where the main attraction is related to its image of being expensive, exclusive and a symbol of social status. These goods will have restricted …
In the UK, there are quite a few different measures of inflation. All measures seek to show the annual change in living costs. However, different measures of inflation give different inflation figures. For example, RPI can often give a higher rate of inflation than CPI. CPI can also be misleading. For example, an increase in VAT …
Readers question: what are perfectly flexible wage? Perfectly flexible wages are job contracts where the wage can frequently be changed. For example, if wages are determined by the income firms get – then wages are flexible – they directly change depending on price of goods. This means the wage a farm worker gets will vary …
Readers Question: Endangered rain forests, wild fish, elephants and more are examples of the tragedy of the commons. What would economists recommend to save, rain forests or fish stocks? Firstly, the tragedy of the commons is a situation where there is overconsumption of a particular product / service because rational individual decisions lead to …