This is a list of suggested economics reading which will help give a better understanding of the subject. It includes quite a range of perspectives from the ‘debunking of economics and free markets’ to Milton Friedman’s passionate defence of the free market. Whatever their perspective they all can add to our understanding. 50 Economics Ideas: …
Definition of automation Automation refers to the process of automatically producing goods through the use of robots, control systems and other appliances with a minimal direct human operation. Within manufacturing industries, automation has led to increased labour productivity as fewer workers are needed to produce the same number of manufactured goods. A perceived downside of …
Traditionally, the key measures of economic performance in macroeconomics include: Economic growth – real GDP growth. Inflation – e.g. target CPI inflation of 2% Unemployment – target of full employment Current account – satisfactory current account, e.g. low deficit. Other measures of economic performance can include: Government borrowing/national debt Real disposable incomes Income inequality (Gini …
Moral Hazard is the concept that individuals have incentives to alter their behaviour when their risk or bad-decision making is borne by others. Examples of moral hazard include: Comprehensive insurance policies decrease the incentive to take care of your possessions Governments promising to bail out loss-making banks can encourage banks to take greater risks. Conditions …
A key economic debate is the extent to which should governments intervene in the economy? At one extreme, free-market economists/libertarians, argue that government intervention should be limited to all but the most basic services, such as the protection of private property and the maintenance of law and order. At the other extreme, Marxist economists argue …
Supply-side policies are government attempts to increase productivity and increase efficiency in the economy. If successful, they will shift aggregate supply (AS) to the right and enable higher economic growth in the long-run. There are two main types of supply-side policies. Free-market supply-side policies involve policies to increase competitiveness and free-market efficiency. For example, privatisation, …
To overcome market failure, the government can use various policies. For example, to reduce consumption of demerit goods, they can increase taxes. Policies to overcome market failure Taxes on negative externalities Subsidies on positive externalities Laws and Regulations Electronic Road Pricing – a specific tax related to congestion Pollution Permits – giving firms the ability to …
A look at some of the advantages and disadvantages of hosting a major sporting event. Hosting a major sporting event can give many economic, social and cultural benefits. However, the costs of hosting the event can also be quite high. What determines whether the benefits outweigh the costs? Advantages of hosting a major event 1. …