Definition – Opportunity cost is the next best alternative foregone. If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay. If you decide to spend two hours studying on a Friday night. The opportunity cost is that you cannot have those two hours for leisure. …
The Australian economy is unique. 35% of the country is practically desert and geographically it is isolated. 98% of its trade is exported by sea. Yet, it has become one of the richest countries in the world. Richer than the UK, France and Germany. From 1991 to 2020, it experienced the world record for the …
The UK, along with many other countries, is experiencing a real cost of living crisis with inflation rising faster than average wages. The cost of living crisis is driven by higher transport costs, and energy and food prices, and this is forecast to continue to worsen over this winter. What are the various policies which …
Explicit costs involve a transfer of money and can be recorded on a balance sheet. (e.g. purchase of raw materials) Implicit costs are related to the opportunity cost of one course of action that leads to lower income (e.g. a shop which offers space for a charity to collect money will have lower sales) Implicit …
Globalisation is a complex and controversial issue. This is a look at some of the main benefits and costs associated with the greater globalisation of the world economy. Definition of Globalisation The process of increased integration and co-operation of different national economies. It involves national economies becoming increasingly inter-related and integrated. Globalisation has involved: Greater …
A list and definition of different types of economic costs. Fixed Costs (FC) The costs which don’t vary with changing output. Fixed costs might include the cost of building a factory, insurance and legal bills. Even if your output changes or you don’t produce anything, your fixed costs stay the same. In the above example, …
Funding free licence fees for over-75s cost the government £608m in 2013-14 – about a fifth of the BBC’s budget. By 2021/22 funding free license fees for the over-75s would cost £745m. Under the new scheme, pensioners receiving pension credit will be eligible for a free license, but the rest of pensioners over 75 will …
A look at the potential economic and social, benefits and costs of the Olympics.