Across the globe we are seeing a dramatic fall in the birth rate, with countries like Italy forecast to see their population decline from 61 million to 28 million by 2100. There are several reasons for falling birth rates – traditional factors include economic growth, improved education and access to contraception. But, in recent years, …
A business has a variety of potential objectives from profit maximisation to cultivating good relationships with various business stakeholders. Economic theory often assumes that firms are rational profit maximisers. However, in the real world, there are many other objectives that a firm can pursue. Business Objectives of firmsWatch this video on YouTube Profit Maximisation. The …
This is a list of the gross national debt of 178 countries, showing the variation in debt levels from Venezuela at 304% of GDP to Macau at 0% of GDP. National debt refers to the amount of total government debt a country has. This is also referred to as ‘public sector debt’. It is compiled …
Definition: Economic inactivity means that people (aged 16-64) are not involved in the labour market – they are neither working or actively seeking employment. Economic inactivity includes students, early retirees and the long-term sick. There are 8.5 million counted as economically inactive in the UK. The unemployed who are seeking working and willing and able …
Between 2009 and 2015, the Bank of England has been authorized to create £375bn of assets by the creation of central bank reserves. This new money was used to purchase government gilts. The theory is that by creating extra money and buying gilts from financial institutions, there would be an increase in the money supply …
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 …
One of the main issues in economics is the extent to which the government should intervene in the economy. Free market economists argue that government intervention should be strictly limited as government intervention tends to cause an inefficient allocation of resources. However, others argue there is a strong case for government intervention in different fields, …
A recession (fall in national income) will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The main costs of a recession will be: Unemployment Fall in income – shorter …