On this website, Economics Help, there are many economic essays and resources which you can read to gain an increased knowledge of economics. Also view UK Economics Blog for latest developments What is Economics? ECONOMICS … is the study of how society decides: ¨ What ¨ For whom ¨ How to produce… Example: The price …
After tax income is the income remaining after the government has subtracted income tax (and other related income taxes like national insurance) It does not take into account indirect taxes like VAT. These taxes are paid when consuming goods. Another term for after tax income is disposable income. Disposable income is often confused with discretionary …
Auctions are an event where different parties can bid for the right to purchase a good or service. Auctions are seen as a potentially efficient mechanism for the sale and purchase of goods. They are used for a variety of goods, but, in particular for rare expensive goods, which are hard to price. Auctions have …
Definition of Cabotage The transportation of goods in a country by foreign carriers. e.g. a lorry delivering French wine may cross the channel and then deliver it directly to parts of the UK. Cabotage as a Trade Barrier. If a government places restrictions on cabotage, insisting transport within a county be undertaken by domestic firms, …
Definition of Capital Expenditure. Capital expenditure is when a firm buys something that cannot be counted as a cost of a business, but reflects an expansion in a firms assets. Examples of capital expenditure include: The purchase of existing business. Purchase of capital goods from other suppliers, e.g. machines, computers, lighting systems. For tax purposes, …
Absorption is not a common term but refers to the total level of spending that occurs in an economy. It includes import spending but excludes exports. It shows the total amount of consumption by people in an economy regardless of the origin of the goods and services. Absorption includes spending on all goods and services. …
Pollution is seen as an example of market failure. In particular, pollution is an example of a negative externality – a cost imposed on a third party. For example, when driving a car, other people suffer from the emissions e.g. global warming, air pollution. Therefore, in a free market, there tends to be the overconsumption …
Definition of Brand loyalty – This occurs when consumers have a strong preference for a particular type of good or brand. It means that the consumer will be willing to make repeat purchases and is much less likely to experiment with other goods. Examples of Brand Loyalty Brand loyalty occurs with goods that are heavily …