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Showing posts from March, 2012

The UK Economic Growth Shrank More than Expected

In The News The Guardian reports today that the UK GDP fell 0.3% in the fourth quarter rather than the 0.2% contraction previously predicted by economists. It states that none of the analysts polled by Reuters had predicted the downgrade. Overall the economy grew 0.7% in 2011. The Guardian furnished the accounts of the well known economists such as Vicky Redwood, the Chief UK Economist at Capital Economics. Here is what he says. The slight downward revision to GDP in Q4 is disappointing, although of course this is fairly old news now and it looks as though the economy recovered somewhat in the first quarter … At least there were some encouraging aspects to the detail. Although the household saving rate nudged down in Q4, the back-data have been revised up a fair bit. So it now looks like households' finances are in a bit better condition than before. What's more, the balance of payments figures show that the current account deficit fell sharply, reflecting both the dro

Topic 10: Demand and Supply

Contents A) Introduction v   Market v   Desire v   Price v   Utility v   Demand B) Detailed study of Demand v   Demand for products v   Law of demand v   Levels of demand v   Demand Schedule v   Demand Curve C) Detailed study of Supply v   Supply of a Commodity v   Output and Supply v   Law of supply v   Supply Schedule v   Supply Curve D) Markets in Action v   Equilibrium Price v   Price Determination v   Movements of demand curve v   Causes of Shifts in Demand Curve v   Movements along the demand curve v   Effects of changes in demand on Market Price v   Movements of supply curve v   Causes of Shifts in Supply Curve v   Movements along supply curve v   Effects of changes in supply on Market Price v   Non-market prices v   Commodities with fixed supply v   Imposing Taxes v   Granting Subsidies

Topic 10: Demand and Supply - Introduction

Topic 10: Demand and Supply - Detailed Study of Demand

Topic 10: Demand and Supply - Detailed Study of Supply

Topic 10: Demand and Supply - Price Determination

Topic 10: Demand and Supply - Movement OF Demand Curve

Topic 10: Demand and Supply - Causes of Shifts in Demand Curve

Topic 10: Demand and Supply - Movement ALONG the Demand Curve

Topic 10: Demand and Supply - Effects of Changes in Demand on Market Price

Topic 10: Demand and Supply - Movements OF supply curve

Topic 10: Demand and Supply - Causes of Shifts in Supply Curve

Topic 10: Demand and Supply - Movements ALONG supply curve

Topic 10: Demand and Supply - Effects of changes in supply on Market Price

Topic 10: Demand and Supply - Non-Market Prices

Topic 10: Demand and Supply - Commodities with fixed supply

Topic 10: Demand and Supply - Imposing Taxes

Topic 10: Demand and Supply - Granting Subsidies

Solving the CWP to Identify the Basic Terms on How the Market Works

TASKS 1. Complete the Cross Word Puzzle to identify the term that best fits for each of the description given below. 2. Search for the same words and colour them to help you double check your answers for the First Task. DOWN 1. The willingness of the consumer to possess a particular product 2. The satisfaction obtained by consumers by consuming a product 3. The desire for a product which is backed up by the willingness and ability to buy a product ACROSS 4. The value of the product expressed in terms of a currency 5. Any arrangement which enables buyers and sellers to determine a price and to facilitate exchange

Searching for the Introductory Terms on How the Market Works

Search for the following words and define each of them. goods services satisfaction wants production commodities allocation scarce resources capitalist economic consumer preferences demand product

The Economic Effects of Tax Cuts

In The News 18 March 2012 Ministry of Economic Development stated on 05th December 2011 that the President ratified the 9th amendment bill to Act number 31/79 (Export Import Act) on the 1st of December 2011. The Act now states that 0% import duty is applied on all construction goods, fertilizers, environment friendly goods and all food products except those that can be produced locally. This reduction is proposed to bring about positive changes to the market prices of essential products. The Ministry of Economic Development has prepared an analysis on the anticipated market prices for 29 essential food products for the year 2011, after the reduction of import duty. The analysis shows that even with the inclusion of 6% GST, and allowing for the same rate of profit as currently applied to the products, the price of these products can reduce between 9% to 13% in the starting year. In addition to this, the analysis is done to show the anticipated reduction in price of the sp