Top answers

Using a diagram and an example, explain what a negative externality is and why it leads to market failure.

Market failure occurs when prices do not fully reflect social costs. Externalities are spillover effects of a transaction that affect a third party not involved in the transaction. The negative health effect...
MA
Answered by Max A. • Economics tutor
3682 Views

Evaluate the view that a reduction in UK unemployment is best achieved through the use of supply-side policies.

Intro: UK unemployment currently at 4.4%, a four-decade low, question remains how to lower it further with growth forecasts falling and business confidence faltering. Para 1: A traditional approach would be ...
AS
Answered by Antonio S. • Economics tutor
13843 Views

Explain using a diagram why when people have medical insurance the PED for medical treatment is likely to be very low whilst the YED is likely to be high

The price elasticity of demand, which measures the sensitivity of demand when price changes, for medical treatment is often low when people have medical insurance since the insurance company will cover most ...
TW
Answered by Timothy W. • Economics tutor
4850 Views

Please outline the fundamental Kalam and evaluate its weaknesses

The Kalam argument is a cosmological argument and is of a deductive nature - that is to say it is logically structured in such a way that if all the premises are true, then the conclusion must be true (ie it...
TW
Answered by Timothy W. • Economics tutor
2732 Views

Why do price of exchange rates increase when interest rates increase? What does it mean that a currency is strong?

When the interest rate is high in a country it encourages investors to convert their money, e.g. into pounds, and invest their money in the country. The price change can be traced back to basic supply and de...
BL
Answered by Bence L. • Economics tutor
2477 Views