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Explain the effect on economic growth if a government increases income tax (ceteris paribus).

An increase in taxation reflects tighter fiscal policy, reducing the take home pay of those employed. This will reduce the amount of income that households are willing to spend on goods and services in the e...
Answered by • Economics tutor
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What are causes of globalisation?

Improvements in transport infrastructure and operations: Resulted in quick, reliable and cheap methods to allow production to be seperated around the world. 2. Improvements in IT and communication: Allow com...
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Answered by Jamie A. • Economics tutor
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"What are the causes of an appreciation (outward shift of demand) for a floating exchange rate?"

Increase in incomes abroad: Increased incomes abroad increases their MPM. This increases demand for UK exports and thus demadn for the pound shifts. 2. A relative rise in UK interest rates: As UK IR increase...
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Describe the impacts of the government implementing a sugar tax on fizzy drinks?

A sugar tax would be a direct tax that would increase the price of fizzy drinks such as diet coke for consumers. This would make it more expensive for consumers to purchase fizzy drinks and would therefore r...
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Answered by Samuel B. • Economics tutor
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Explain why the use of petrol and diesel cars may be a source of market failure.

Pollution from petrol cars is an example of a negative externality (where the actions of one person impact another without the affected person being compensated). In a competitive economy people pay the &quo...
Answered by • Economics tutor
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