– Positive economics: based on facts and testable theories e.g. inflation is 2% – Normative economics: based on opinion – Opportunity cost: is the sacrifice foregone of the next best alternative – Demand curve will shift to the right if real incomes rise, price of substitute rises, price of complement falls, changes in taste Giffen …
Assess the extent to which governmentsts are likely to encounter difficulties when attempting to respond to economic shocks that affect economies such as Germany and the UK (30) Economic shocks are events which adversely affect the economy and the governments macro economic objectives such as growth, inflation, unemployment and the balance of payments. Economic …
There was reduction in the surplus on the current account of the French balance of Payments between 1998 and 2000. Essay Question: Using the data, assess whether this reflects a deterioration in the performance of the French economy. AQA (15) The current account measures the balance of trade in goods and service between France and …
Some of the supply side policies used in the UK during the 1980s and 1990s. 1. Privatisation. There has been an extensive privatisation campaign, most of the major utilities such as Gas , Water and Electricity were sold by the government and floated on the stock market. In some industries like telecommunications it has led …
European Union For AQA Unit 4 Origins of the EU Economic Integration Single Market What it involves Efficiency of the Single Market Common Agricultural Policy Reform of the CAP Expansion of the EU Monetary Union What it involves How it affects Monetary Policy Impact of European wide inflation targeting and interest policy Arguments for Against …
Free general advice for Studying Economics Learn the basics first. You can answer a lot of questions just through mastering supply and demand questions. Practise Questions. To learn you need to practise and answer questions yourself. Don’t just read the textbook. Reading is a form of passive learning; there is a limit to what you …
The Euro started Jan 1999 EMU involves Replacement of National currencies by the EURO Same Monetary Policy – Since “One Money” implies uniform interest rates Exchange Rates within the Euro area will cease to exist By mid 2002 national currencies will cease to be legal tender Pre Launch Blues Expectations about Inflation helped reduce actual …
The Austrian school of economics is a broad range of economic thought generally critical of state socialism and supporters of laissez-faire capitalism. Austrian School of Economics 1. Criticise Marxist analysis of Economic distribution. Austrian economists have argued that laissez-faire capitalism offers the most efficient method for distributing resources. 2. Methodological individualism. Austrian economists have placed …