ECONFIX

Since the oil crisis years of 1973 (400% increase) and 1979 (200% increase) Denmark has invested heavily in renewable energy (including wind) to reduce its exposure to unstable fossil fuel prices but more importantly to reduce its carbon emissions. Currently the wind industry in Denmark employs 107,000 people and generates about US$17 billion per year. What are the benefits a...

With the essay paper next Tuesday here is a revision note on the labour market market.

Marginal revenue productivity (MRPL) is a theory of wages where workers are paid the value of their marginal revenue product to the firm.

Perfect labour market
The MRP theory outlined below is based on the assumption of a perfectly competit...

The A2 essay paper is next Tuesday and differing objectives of firms is a potential essay question in Section B – Micro.

The standard neo-classical assumption is that a business seeks to maximise profits (MC=MR) from producing and selling an output in a market. However, there are other objectives that firms might decide to pursue and this has implications for price...

With the AS Paper 2 next week here is a revision note on the costs and benefits of growth and a mindmap. This could potentially be a 12 mark question in Section C.

Costs of economic growth

With the AS paper next week here is a post on the current account. A current account deficit (CAD) allows residents to consume more products that it produces. However the country needs to finance the deficit by attracting investment into the country or by borrowing. This will involve an outlow of money in the future in the form of investment income. An increase in a CAD may a...