Definition A budget surplus occurs when tax revenue is greater than government spending. With a budget surplus, the government can use the surplus revenue to pay off public sector debt. Budget surpluses are quite rare in modern economies because of the temptation for politicians to spend more money and cut taxes. The UK experienced a …
Definition of Buffer Stock Scheme A buffer stock scheme is a government plan to stabilise prices in volatile markets. This requires intervention in buying and selling. Prices for agricultural products are often volatile because: Supply can vary due to the weather. Demand is inelastic Supply is fixed in the short term See: Why are prices …
Building societies evolved in the 18th Century as a way for people to buy a house by pooling savings and mortgages. Many of the early building societies were temporary i.e. the aim was to pay off a mortgage and then close down the building society. However, permanent building societies emerged as more people wished to …
Definition of Bull Market A bull market is a stock market where the overriding expectation is for share prices to rise. A bull market invariably means that prices are already rising. Bull markets tend to be self fulfilling as the expectations of price rises encourages people to buy now. Bull markets can become overly optimistic …
Definition of The Business cycle – The Business cycle refers to the cyclical nature of economic growth. Typically the business cycles involves a period of rapid growth followed by slower growth or in some cases a recession. The business cycle is sometimes referred to as the ‘trade cycle’ or just economic cycle. Some business cycles …
Business ethics refers to the way firms behave with regard to conducting business. Business ethics involves following legal requirements for business, but, also involves considering issues which may be legal but not necessarily beneficial for society. Business Ethics may involve. Treatment of workers, shareholders, stakeholders, suppliers etc Care not to mislead consumers and workers with …
A Market which is better for buyers than sellers. Buyers markets may occur when there is intense competition between firms. Buyers markets will also occur when firms are under pressure to raise money quickly. This may occur in a recession when money is tight. Buyers market in the Housing Market. In the period 1992-96, housing …
Definition of Cabotage The transportation of goods in a country by foreign carriers. e.g. a lorry delivering French wine may cross the channel and then deliver it directly to parts of the UK. Cabotage as a Trade Barrier. If a government places restrictions on cabotage, insisting transport within a county be undertaken by domestic firms, …