The UK has often experienced high levels of geographical unemployment. In particular areas in the north and south Wales experienced high levels of unemployment after the closure of heavy manufacturing and the coal mines. Assisted areas are government designated regions with above average levels of unemployment. They then qualify for government assistance in the form …
Definition of asymmetric information: This is a situation where there is imperfect knowledge. In particular, it occurs where one party has different information to another. A good example is when selling a car, the owner is likely to have full knowledge about its service history and its likelihood to break-down. The potential buyer, by contrast, …
Definition of Atomistic Competition: A market structure where firms are so numerous that the market represents perfect competition. In atomistic competition there will be the following features: Many small firms The absence of economies of scale Firms do not have the ability to set prices (they are price takers) Low Profits and low prices for …
Auctions are an event where different parties can bid for the right to purchase a good or service. Auctions are seen as a potentially efficient mechanism for the sale and purchase of goods. They are used for a variety of goods, but, in particular for rare expensive goods, which are hard to price. Auctions have …
Definition Audit: An audit is the process of checking account and company balance sheets. They will be undertaken by trained auditors who need to have professional qualifications and act independently of the firms interests. Auditors can give accounts the seal of approval or adding qualifying remarks saying there are elements of concern. Many large companies …
The Austrian school of economics is a broad range of economic thought generally critical of state socialism and supporters of laissez-faire capitalism. Austrian School of Economics 1. Criticise Marxist analysis of Economic distribution. Austrian economists have argued that laissez-faire capitalism offers the most efficient method for distributing resources. 2. Methodological individualism. Austrian economists have placed …
Definition of Autarky Autarky is an economic policy to have a closed economy and not allow any external trade. In practice, a policy of autarky may refer to attempts to reduce a country’s dependence on external trade. For example, imposing tariffs and quotes may restrict trade even if it can not be entirely abolished. In …
Automatic stabilisers refer to how fiscal instruments will influence the rate of growth and help counter swings in the economic cycle. Automatic stabilisers will influence the size of government borrowing. Example of automatic stabilisers High Growth – In a period of high economic growth, automatic stabilisers will help to reduce the growth rate. With higher …