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Evaluate the micro and macroeconomic effects of the UK leaving the EU Single Market.

One major impact of leaving the Single Market is increasing the costs of firms. The EU has a common external tariff, and given that members enjoy free trade between each other, this is likely to increase imp...
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Answered by Matthew L. • Economics tutor
3901 Views

What is the difference between GDP and GNI and how should I compare them?

The difference between GDP (Gross Domestic Product) and GNI (Gross National Income), lies in the distinction between the notions of ‘national’ and ‘domestic’. GDP measures all output produced within the bord...
MP
Answered by Marco P. • Economics tutor
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What does the term comparative advantage mean? How can I use this in an essay based question?

A country has a comparative advantage in something if it can produce it at a lower opportunity cost than any other country. If for example Mexico were able to source and put together the components of a prin...
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Answered by Adam S. • Economics tutor
3480 Views

Explain why a demerit good is overconsumed, if left to market forces.

A demerit good is a good which has a negative impact on its consumer and others in society. An example of this is alcohol, which can cause health problems for people who drink it, but also leads to external ...
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Answered by Henry H. • Economics tutor
16331 Views

Why might the government offer subsidies to the farming industry?

A subsidy is a money transfer from the government to producers in order to increase supply. Subsidies can either be provided on a per unit basis or based on total value of production, an ad valorem subsidy s...
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Answered by Joe S. • Economics tutor
4266 Views