Top answers

How should the UK government go about achieving a balance of payments surplus?

Supply-side spending, lower exchange rate and investment in productivity boosting policies
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Answered by Dylan P. • Economics tutor
2022 Views

Please explain what price elasticity of demand is, in the context of simple supply and demand of a good in a competitive market.

Price elasticity of demand is a fundamental concept in microeconomic theory. By taking the first and second derivatives of a demand function with respect to price (finding the partial derivative by different...
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Answered by Olivia F. • Economics tutor
2307 Views

Explain two disadvantages of specialisation.

Vulnerability, whether it be an employee, firm or country who specialise, producing only one good can be a risk if that industry were to collapse. An example of this is the increase in unemployment in the so...
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Answered by Kira E. • Economics tutor
3992 Views

Why does excessive consumption of alcohol lead to negative externalities ?

The private consumer does not consider the effect that their excessive alcohol consumption has on a third party and so the private benefit outweighs the social benefit. There is a welfare loss to society fro...
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Answered by Kira E. • Economics tutor
2831 Views

Evaluate whether monetary policy is the best method of reducing inflation.

DefinitionMonetary policy (3 sections - interest rates, exchange rates, money supply), fiscal policy, inflation (demand and cost driven), supply-side policies. Apply to question always - any relevant example...
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Answered by Luke Y. • Economics tutor
2032 Views