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Explain the importance of low interest rates in bringing about a recovery from recession in an economy like the UK. (10)

Interest rates are tools of monetary policy set by the Bank of England. They are currently at 0.5% in the UK. A recession is defined as two consecutive quarters of negative economic growth. Low interest rate...
TD
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Examine two reasons Company A plans to merge with Company B

Identify what kind of integration it is E.g. Is it horizontal or vertical? Definition of type of integration. E.g. Horizontal integration is when two firms in the same industry and at the same stage of produ...
MC
Answered by Marina C. • Economics tutor
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How many real life examples do i need for application points?

The more real life application the merrier. Watching the news and keeping up to date with current global and domestic economic issues is a key for this exam. If you have more current and relevant examples, t...
UE
Answered by Ula E. • Economics tutor
2666 Views

How can a PPF curve be used to show opportunity cost?

We begin by discussing what a Production Possibilities Frontier (PPF) curve is. It is a curve that shows the various combinations of two goods (say cycles and dictionaries) that a firm can produce with given...
SV
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Why does inflation decrease but prices continue to go up?

This is a good question and it refers to the difference between deflation and disinflation. Sometimes if inflation is at 2% and it decreases to 1.5% for example, there will still continue to be a general pri...
LB
Answered by Luke B. • Economics tutor
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