In recent years the cost of producing solar energy has fallen dramatically. Discuss the economic effects of cheaper solar power on the energy industry and wider economic welfare. Solar power is an alternative energy source to coal and natural gas. Solar power also has a significant environmental advantage over traditional fossil fuels. It is renewable. …
Readers Question: Discuss the relationship between elasticity and market power’ in terms of the retail petrol market. And then it says ’use common determinant of both’, whatever that means? Demand for petrol is quite inelastic. If you have a car, there are not many alternatives to buying petrol. This is why the increased price of …
The Euro is the single European countries adopted by 18 out of 28 EU countries. The UK has not joined. The Euro involves: Common currency Common monetary policy – Eurozone interest rates set by the ECB in Brussels. Some fiscal rules, e.g. The Fiscal Compact (2012) limiting the amount of government borrowing (a balanced budget …
“Water, water, every where, Nor any drop to drink.” – Samuel Taylor Coleridge – The Rime of the Ancient Mariner. The water companies are the least loved out of the privatised utilities, and the lack of rain over the past two winters is making their job much more difficult. For many people, it is hard …
Readers Question: How Has China’s Economic Industrialisation affected the UK’s Economy? And What Policies Could The UK Government Implement To Rectify The Problems Created From China’s Growth? The rapid growth of China’s economy has had various effects on the UK economy – some positive and some which have created challenges and problems for the UK. …
A look at the effects of how an over-valuation of the exchange rate can cause deflation. Readers Question: does an appreciation in the exchange rate cause deflation? An appreciation does tend to reduce inflationary pressures. This is because after after an appreciation in the exchange rate: Price of imports will fall, causing a fall in …
A look behind the causes and consequences of the economic crisis, and why it has been difficult to solve. Background to Economic Crisis The 1990s and early 2000s was a period of economic prosperity – Low inflation and high economic growth gave an impression of economic stability, but in other areas of the economy there …
Readers Question: Hello I recently saw a programme How China Fooled the World – with Robert Peston and I was wondering what threats and opportunities does the growth of economies like China and India provide to the UK economy? According to the IMF, in 2010, the Chinese economy was $5,878 billion – second only to …