Tejvan Pettinger Government intervention in the labour market to reduce inequality and market failure can take various forms. Minimum wages/living wagesMaximum wages (rarely used)Legislation to prevent discrimination on the grounds of age, sex, religion.Legislation to support or regulate trade unions.Maximum working weekLegislation on health and safetyBehavioural nudges...
Tejvan Pettinger Definition of knowledge economy The sector of the economy which is increasingly based on knowledge-intensive activities, creating a greater reliance on intellectual capital rather than physical inputs. The OECD state the knowledge economy is associated with: High-tech manufacturing (computer, electronics, aerospace),Service sector industries, such as education healthcare...
Tejvan Pettinger There are several features of eBay which make the market competitive – and perhaps close to the model of perfect competition. Many buyers – thousands of people have access to viewing items listed on eBay. If I sold it in traditional means, smaller numbers of buyers...
Tejvan Pettinger Economic growth is an increase in real GDP; it means an increase in the value of goods and services produced in an economy. The rate of economic growth is the annual percentage increase in real GDP. There are several factors affecting economic growth, but it...
Tejvan Pettinger The current US administration have suggested they want to increase the US budget deficit to enable higher rates of economic growth. What does economic theory state about this idea? “We need to have new deficits because of that. We need to have the growth,” Mulvaney...
Tejvan Pettinger A look at different methods to reduce budget deficits. A budget deficit occurs when a government spending is greater than tax revenues. This leads to an accumulation of public sector debt. If the deficits are unsustainable, this can cause rising bond yields (higher interest...
Tejvan Pettinger The tax burden refers to the share of GDP that is collected in different forms of tax within an economy. For example, in an economy with a size of £1,000bn – if the government collects tax of £300bn, then the tax burden will be 30%. The...
Tejvan Pettinger What would be the impact of the US placing a tariff on the import of steel and aluminium into the US A tariff on imports of foreign steel would raise the price of imported steel and encourage US firms and consumers to buy domestically produced...
C. P. Chandrasekhar At the end of its five-year term, the NDA government’s claim that the Indian economy has experienced rapid growth during its tenure sounds shallow. The GDP numbers many observers argue are wrong and possibly fabricated. The GDP figures have since 2011-12 been computed...
Tejvan Pettinger Over time, the IMF has been subject to a range of criticisms, generally focused on the conditions of its loans. The IMF has also been criticised for its lack of accountability and willingness to lend to countries with bad human rights records. Criticisms of IMF include 1. Conditions...