Inflation is generally controlled by the Central Bank and/or the government. The main policy used is monetary policy (changing interest rates). However, in theory, there are a variety of tools to control inflation including: Monetary policy – Higher interest rates reduce demand in the economy, leading to lower economic growth and lower inflation. Control of …
Cost-push inflation is caused by higher costs of production, such as rising oil prices, higher nominal wages, and increased commodity prices. To reduce this kind of inflation, the government can pursue deflationary monetary policy and/or supply side policies. But, in truth, it is difficult to reduce cost-push inflation because higher interest rates are likely to …
Putting aside the very real human cost, war has also serious economic costs – damage to infrastructure, a decline in the working population, inflation, shortages, uncertainty, a rise in debt and disruption to normal economic activity. From some perspectives, war can appear to be beneficial in terms of creating demand, employment, innovation and profits for …
Definition – Collective bargaining refers to the negotiations between a group of workers and firms. Workers, usually through a trade union, form a unified approach to negotiate wages and work conditions with their firm (or group of firms). Collective bargaining can involve many different aspects of work – including pay, health and safety, working hours, …
Freemium is a business model where a firm gives away its product for free with the aim of later converting some users to the paid version. Freemium is different to a trial offer because the user can continue to use the free version for a prolonged period. Freemium is like an indefinite free trial.Dropbox is …
In recent years, many markets have shifted from a model of one-off purchases to subscription models. One-off purchases involve a single transaction and the consumer gets a product permanently Subscription models involve monthly transactions and the consumer gets the product for only as long as they keep paying. For example, we used to buy records …
The minimum wage for workers aged 16-18 is £4.55 (April 2020-21) For workers, aged 18-20 is currently £6.45 (April 2020-21) Readers Question: What are the minimum wage rates for 16, 17 and 18-year-olds. Should the minimum wage be increased? Should there be a minimum wage rate for children under 16? Minimum Wage Rates from April …
UK Minimum Wage The National minimum wage rate is currently £8.72 for workers over 25 (from April 2020). The minimum wage was introduced in April 1999 (at £3.60) and is the legal minimum that employers can pay. The aim of the National Minimum Wage is to help increase incomes of the low paid. It has …