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A reduction in the base rate of interest means that the cost of borrowing money is cheaper and the reward for saving money is lower. Therefore, people are more likely to borrow money from banks and this lead...

Diminishing marginal returns is a situation where the addition of one unit of a variable input increases output by less than the addition of the previous unit (i.e. declining marginal physical product). A de...

A merit good is a good which has positive externalites and therefore people do not consume enough of them. For example, vaccinations. A public good has two characterisitics, it is non-rival: this means that ...

The quantity of other goods sacrificed to get another unit of that good.

Benefits: > Increased real national income and hence standard of living > Increase in the size of markets allowing MNC's to exploit and take advantage of economies of scale > Allowing domestic marke...