Readers Comment It is shocking to me that revenues from all my future income tax and even my young children’s future tax payments have already been committed by our national debt. If it is not some kind of nefarious carve-up, why would the UK wage 2 unnecessary wars costing billions when we do not have …
If you have exams this afternoon, there isn’t much more revision you can do. What is important now is the right exam technique. These tips may sound like common sense and stating the obvious, but, every year a significant % of candidates make these mistakes and so reduce their grade. Although they may sound obvious …
In the UK, it is currently the exam season and my students are finally thinking of doing some actual revision. These are some tips to make your revision more effective. Be practical. Don’t worry over results or speculate on grades, make small efforts to improve knowledge and exam writing technique. If you make those small …
A Common question at AS and A2 Level is to understand economic graphs and statistics. Look at the graph below and explain what happens to GDP at current prices between 1974-1983? Many students will answer – In this period GDP is falling. However, this is wrong. What is happening is that the growth rate is …
Readers Question: Can you please differentiate between the causes of once-off inflation and sustained inflation? A temporary period of inflation, also called one-off inflation, may be caused by: Temporary inflation in 2008 and 2011. Rising in tax rates. Suppose the chancellor announces a 10% rise in fuel duty. This means prices will rise. But, next …
Readers Question: I am studying AS level economics and I have a homework which i’m stuck on. I was wondering what are the pros and cons of the government intervening in market failures such as those resulting from the immobility of labour, negative externalities and greater income inequality, following the closure of factories. It’s a …
Readers Question: What credit can the adoption of central bank independence take for the relative stability of the UK business cycle since 1997? The MPC, Bank of England, are responsible for setting interest rates and determining UK monetary policy. They seek to keep inflation close to the government’s target of CPI 2% +/-1 % Between …
Readers Question: Will an extra $20 billion per year spent on housing have the same impact on the economy as an extra $20 billion spent on interstate highways? It depends on the state of the economy. At the moment, 2008, one of the biggest threats to the US economy is falling house prices. Data released …