The UK is heading for an energy crisis this winter, with average bills set to rise from £1,100 per year to at least £3,600. And with the possibility of prices rising to over £5,000 in January 2023. The lowest income families may see energy costs rise from 7% to 24% of income. (Link) For better-off …
Government intervene in labour markets to overcome market failure, protect workers health and safety and to reduce inequality. Government labour market regulations include. Maximum working weeks Statutory minimum wages Legislation to prohibit discrimination Protection against unfair dismissal. Health and safety legislation Right to join trade unions Legislation to auto-enroll workers in private pensions Regulations about …
A look at the arguments for and against privatisation. Privatisation involves selling state-owned assets to the private sector. It is argued the private sector tends to run a business more efficiently because of the profit motive. However, critics argue private firms can exploit their monopoly power and ignore wider social costs. Privatisation is often achieved …
In recent years, there has been a growing trend toward using electronic payments rather than physical cash. This trend to a cashless society is likely to be accelerated by the Coronavirus which gives an impetus to avoiding unnecessary physical transactions. There are several advantages of a cashless society, such as a lower risk of violent …
Smoking causes an increased risk of cancer to both those who smoke and also to third party’s who breathe in other people’s smoke. It is a classic example of a demerit good. To reduce smoking rates, the government can choose policies from Higher tax Raising legal minimum age Restrictions on smoking in public places Subsidies …
An import quota is a limit on the amount of imports that can be brought into a particular country. For example, the US may limit the number of Japanese car imports to 2 million per year. Quotas will reduce imports, and help domestic suppliers. However, they will lead to higher prices for consumers, a decline …
This is when governments give a guarantee to savers that if their bank goes bankrupt, the government will pay them all or some of their savings. The government offers bank deposit protection to increase the confidence in the banking system. If people felt banks could go bankrupt during a financial crisis – then they could …
Definition Trade diversion occurs when tariff agreements cause imports to shift from low-cost countries to higher-cost countries. Trade diversion is considered undesirable because it concentrates production in countries with a higher opportunity cost and lower comparative advantage. Trade diversion may occur when a country joins a free trade area with a common external tariff. Example …