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Explain why the UK have different minimum wage rates for different age groups

• In perfectly competitive markets, equilibrium in the labour markets is determined by the demand and supply of labour. For one particular firm, the supply of labour is determined by labour supply curve in t...
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Answered by Andreea A. • Economics tutor
3594 Views

What is the difference between a contractionary and expansionary fiscal policy?

First of all, it is important to understand what a fiscal policy really is. This is a tool used by the government to influence the aggregate demand of the economy and consequently, the total output produced ...
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Answered by Leonor F. • Economics tutor
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Which one of the following is the most likely consequence of an increase in the division of labour in the production of smartphones?

Decrease in the cost per unit of the phone, as specialisation means greater levels of efficiency meaning more output can be achieved with the same resources, lowering the cost of production per unit. Special...
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Answered by Oke U. • Economics tutor
7768 Views

Explain why house prices fell during the 2008 financial crisis.

Prior to 2008, many banks made loans to people buying houses without properly insuring that they would be able to repay them. The banks assumed that if any given customer had to default on their loan, they w...
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Answered by Frank D. • Economics tutor
3362 Views

Explain how the UK tax and benefit system is used to redistribute incomes

Income taxes in the UK are progressive in nature, where an increasing percentage of income is paid to the government depending on the individuals earning level. Because higher earners pay more than lower ear...
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Answered by Olivier R. • Economics tutor
2960 Views