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Choose an example of a demerit good and and a policy which may be used by the UK Government to help reduce its consumption

A demerit good is a good which is generally both harmful or unhealthy to the consumer - in most instances, they also carry negative externalities, which are costs imposed onto third parties. An example of su...
TD
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Should maximising profits be the main objective of a business?

In order to answer, one should consider the benefits of profit maximisation. These may include: satisfying shareholders, using money for savings in order to stay afloat, reinvesting profits into technology (...
CD
Answered by Caitlin D. • Economics tutor
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Explain the difference between Long Run Total Costs and Short Run Total costs

In the short run at least one of the factors of production (Land, Labor, Capital and Enterprise) is fixed. Due to this there are short run fixed costs relating from the fixed factors of production. In Econom...
MC
Answered by Michael C. • Economics tutor
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What would happen to the price and quantity of a good if the government imposed a subsidy?

This would be a perfect opportunity to use a diagram to demonstrate how with the imposition of a subsidy, the supply curve will shift to the right to show the fact that more firms can now sell the product on...
MJ
Answered by Mihir J. • Economics tutor
2201 Views

Explain how a government can use fiscal policy to help an economy recover from a recession.

Fiscal policy is the use of government spending and taxation to control the levels of aggregate demand and aggregate supply in an economy.When an economy is recovering from a recession, the real rate of GDP ...
OM
Answered by Oliver M. • Economics tutor
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