Question from the Economist. – It is easy to understand the case that European austerity is self-defeating. But it is also easy to see that one cannot run large deficits year after year without limit and that some countries (Greece, Portugal) have exhausted the willingness of private investors to finance them. Is Austerity self-defeating? Austerity …
A missing market is a type of market failure. A missing market means that there is some obstruction to an efficient free market which would enable a Pareto efficient distribution of resources but for various reasons this market doesn’t exist.
Private label brands (or own brand labels) are products sold by a retailer with its own packing, but manufactured by a third party. For example, Tesco sell ordinary branded items, such as Heinz baked beans, but also sell their own ‘Tesco Value’ baked beans. Tesco will license a manufacturer to produce baked beans and then …
With economic sanctions and a plummeting price of oil, the Russian economy is seeing a real economic crisis. The value of the rouble is falling – causing inflation and a decline in living standards. Government tax revenues are falling as oil tax revenues decline. On top of a falling Rouble, the economy faces recession due …
Readers Question: Why do the costs of living keep going up and our wages do not match it? In recent years, many people have seen the cost of living rising faster than wages. This has led to a fall in real wages – wages increased less than inflation. This effectively means a fall in the …
Readers Question: Would it be possible for a nation to claim that is reducing inflation rate successfully through economic measures, however at same time is allowing increase of commodities prices such as bread, meat, and etc… Firstly a fall in the inflation rate, means prices are still rising. Just at a slower rate. For example …
A concise definition of economics Economics is the study of how to deal with the problem of scarcity and opportunity cost of decisions. Economics is concerned with the optimal distribution of scarce resources in particular What to Produce? How to Produce? Whom to Produce? To this end, economists investigate economic decisions made by individuals, firms …
Definition of Accelerated Depreciation: When goods are written off more quickly than usual to help reduce companies tax bills and encourage investment. Depreciation refers to how the value of a firm’s capital stock reduces over time. For example, if a firm invests in a factory costing £1 million. Then it may predict a depreciation of …