Executive Summary This report seeks to explore and discuss the incentives for protection and the role of the World Trade Organisation (WTO). The report will first cover a definition of the key terms‚ followed by an analysis of the factors that contribute to protectionism. WTO will then be introduced and the relevance of the organisation and its policies will be evaluated. 1. Definitions of terms WTO: World trade organization The WTO provides a forum for negotiating agreements aimed at reducing
Premium International trade Free trade
2008 Public finance Public finance is known as public sector economics or public economics focus on the taxing and spending activities of government and their influence on the allocation of resources and distribution of income. Public finance is the study of the role of the government in the economy. It is the branch of economics which evaluate the government revenue and government expenditure of the public authorities and the modification of one or the other to achieve desirable effects and
Free Tax
Economics Chapter 2 Chapter 2 * Opportunity cost is a ratio. It is the decrease in the quantity produced of one good divided by the increase in the quantity produced of another good as we move along the production possibilities frontier. * The outward-bowed shape of the PPF reflects increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities. * When goods and services are produced at the lowest possible cost and in the
Premium Supply and demand Economics
outcomes 23 / Creative destruction 36 / Tax & govt program disincentives 38 Chapter 3: Government and the Economy • In your own words‚ explain what an externality is. • Besides addressing externalities‚ what other important and beneficial roles does government play in our market economy? Externalities 43 / Govt solutions to externalities 48 / Govt makes market economy possible – rights‚ laws / regulations 51 / Public goods 57 / Redistribution 59 Chapter 4: Government and the Economy
Premium Economics Inflation Monetary policy
Matthew McDowell Assuming there is pure competition in the market place‚ and no government intervention‚ we are able to focus on how the price mechanism determines the equilibrium price in the market. Markets can be effective at resolving the basic issues of what and how much to produce at a certain price level although left to operate on its own‚ the market can still create unsatisfactory outcomes. When markets do not produce the desired outcome‚ it is known as market failure and when this occurs
Premium Supply and demand
role in the housing industry along with all other industries. There are several factors that can influence the housing industry economically. Supply and demand coupled with price elasticity can affect the housing industry. Negative and positive externalities‚ wage inequality‚ and the monetary and fiscal policies can all have substantial affect the industry of new homes. It must also be determined exactly how the economy affects the industry in both positive and negative ways. Price Elasticity The
Premium Supply and demand
Question 3 Perfect Competition and Monopoly (a) I. Explain perfect competition and monopoly market structures‚ and identify the key factors that distinguish them. Perfect Competition Market In economic theory‚ the perfect competition is a market form in which no producer or consumer has the power to influence prices in the market. According to the website wordIQ.com‚ in order to classify the market is a perfect competition market‚ the market must match below criteria: 1. There
Premium
good is to changes in other economic variables Elastic supply: supply of a good or service that increases or decreases as the price of an item goes down or up. Equilibrium price: the amount demanded exactly meets demand supplied. Externalities: Costs and benefits not reflected in free market prices. Costs or benefits on others who are not responsible for initiating the effect Income elasticity Indirect tax: A tax that increases the price of a good so that consumers are actually paying
Premium Supply and demand
First category is externalities. There are effects that can arise from activities that take place during production and also consumption of one individual in the economy that can have a negative effect on the welfare of other individuals in the same economy. For example negative externality being the pollution caused by firms in production. Some however can be positive for example networking effects that can spread information on a broader scale to consumers. Overall these externalities have to be regulated
Premium Economics Regulation State
AS Microeconomics Revision Booklet Micro-Economics Definitions THE ECONOMIC PROBLEM Economic Term | Definition | Opportunity Cost | The real cost of a good/service in terms of the next best alternative foregone. | Economic goods | Goods which have an opportunity cost. | Free goods | Goods which don’t have an opportunity cost. | Normative statements | Based on opinion‚ have some valued judgments. | Positive statements | Value-free‚ objective‚ based upon testable theories‚ fact. |
Premium Supply and demand Economics