Top answers

What is an opportunity cost?

-Cost of best alternative forgone-Can be applied to firms, consumers and government (our main groups for micro)-Give some examples or see if they can come up with their own
KL
Answered by Kavisha L. • Economics tutor
1707 Views

Explain why income tax in the UK is an example of progressive taxation.

In a free market economy like that of the UK, incomes will be very unequally distributed. In order to tackle this issue, the government can use its tax and benefit policy to redistribute income. Progressive ...
MM
Answered by Marta M. • Economics tutor
2537 Views

Explain why firms in the pharmaceutical industry can charge different prices for the same drug in different countries. (15 marks)

For the pharmaceutical company to successfully price discriminate; the market must be split into two- both which have a different PED for the drugs. Consumers with inelastic price elasticity for drugs are th...
SK
Answered by Sana K. • Economics tutor
2759 Views

Explain how an increase in interest rates can affect total spending in the UK.

Interest rates have an impact on the component of aggregate demand (AD) in an economy. AD is made up of consumption + investment + government spending + net trade. A rise in interest rates would mean consump...
DS
Answered by Daisy S. • Economics tutor
2885 Views

The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?

For this question, we need to talk about the price elasticity of supply of two things (1) frozen pizzas and (2) fresh vegetables. If supply is more price elastic, then that means that supply is more responsi...
TD
4456 Views