Substitute goods are two goods which can be used for a similar purpose – they provide different alternatives to consumers. In the case of Android and the iPhone, they offer similar functionality and form, but to some consumers there is a big differential in terms of brand loyalty, meaning for certain types of consumers they …
I have published a new book “Cracking Economics” (Cassell Octopus Press) It is an overview of economics, split into easily manageable topics. The book is illustrated throughout with diagrams, graphs and photos to give a visual explanation of the text and economic ideas. It is aimed at anyone with an interest in economics. Even a …
In economics, utility refers to the amount of satisfaction that a consumer gains from a particular good or service. Total utility refers to the complete amount of satisfaction gained. Marginal utility refers to the satisfaction gained from an extra unit consumed. If the marginal utility of the last item is positive – then total utility …
Technological unemployment occurs when developments in technology and working practices cause some workers to lose their jobs. Technological unemployment is considered to be part of a wider concept known as structural unemployment. Example of technological unemployment When labour-saving machines are introduced into the productive process, a firm can get rid of workers and produce the …
Readers Question: What is the cause of deflation? Deflation involves a fall in the price level – a negative rate of inflation. From a very basic standpoint, there are two main potential causes of deflation: A fall in aggregate demand (AD) A shift to the right of aggregate supply (AS) – i.e. lower costs of …
When interest rates were cut to 0.5% in March 2009, few would have predicted that interest rates would have stayed low in UK, US and the Eurozone for so long. Interest rates have stayed at zero for several years – defying several predictions that they will rise soon. Who benefits from low-interest rates and who …
The claimant count records the number of people receiving unemployment benefits from the government. In the UK, the claimant count currently measures everyone who receives Job Seekers Allowance (JSA). To receive JSA, the applicant must be actively seeking work and provide evidence and commitment of efforts to find work. The claimant count method is one …
Economic stats, graphs and source of data My page with graphs Main ONS dataset Useful direct links Economic growth National income acc. Real GDP | % quarterly Inflation Inflation Time series CPI annual % Unemployment Labour market ILO % Current account b of p Trade C.A % GDP Budget deficit Public finances at ONS PSNB …