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How can the Government improve economic growth/real GDP of a country?

Definition mark: Economic growth is the increase in real GDP Explanation: Government can use two ways of increasing economic growth; supply side policies and fiscal policies. point 1: Providing subsidies to ...
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Answered by Akshay D. • Economics tutor
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What are negative externalities?

A negative externality is defined as the cost suffered by a third party (not involved in the transaction) as a result of the transaction. The consumer and producer are the two main parties in the transaction...
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Answered by James J. • Economics tutor
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Why is a monopoly inefficient?

Monopolistic markets do not meet the criteria for the most important kind of social efficiency - allocative efficiency. If the market is allocatively efficient, firms will be producing at a point where price...
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Answered by Theo C. • Economics tutor
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What factors cause the aggregate demand curve to shift?

The equation for aggregate demand is defined as C+I+G+(X-M) where C is consumption by households on things such as cars, furniture and petrol, I is investment by firms in new technology, factories and invent...
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Answered by Jake H. • Economics tutor
12926 Views

What is Pareto efficiency?

A situation, allocation or outcome is Pareto efficient if no one party can be made better off without another being made worse off. The outcome of a perfectly competitive market is Pareto efficient whereas t...
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Answered by Jake H. • Economics tutor
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