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How can changes to taxes cause a reduction in the public deficit?

Increasing the level of direct taxes to reduce the fiscal deficit would lead to a disincentive to work amongst the rich as they will be less willing to work overtime and more inclined to reduce working hours...
ZC
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Why does the government have to take the multiplier effect into account?

The multiplier effect occurs within the circular flow of money, more precisely when people earn income and spend a proportion of what they have earned. When the government invests in infrastructure (for exam...
ST
Answered by Sithara T. • Economics tutor
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Evaluate policies which a UK government could use to control the activities of oligopolists. (25 marks)

An oligopolistic market is one where mutliple firms coexist in order to provide similar goods or services. The firm’s in this market are however, price makers despite similarities in the products. This allow...
TV
Answered by Tim V. • Economics tutor
34707 Views

Explain one economies of scale that a firm may enjoy when it expands its production scale.

1. Technical economies of sale: Large firms can utilize more fully the machines and plant equitments and thus reduce the average cost. 2.Managerial economies of scale: A large firm with a wider scope of spec...
CY
3884 Views

Explain one reason why governments impose indirect taxes.

Indirect taxes are imposed on expenditure. They raise a firm's cost of production, which causes an upward shift in the supply curve of the firm. Indirect taxes can be specific or ad valorem: specific taxes a...
LH
Answered by Lydia H. • Economics tutor
54366 Views