AQA Economics Unit 4 11th June 2013

this is probably a really stupid question but what are the policies to reduce high inflation (because of cost-push inflation) ?

The thing with cost push inflation is that there's not really any solid way for a government to counteract it since the cause is out of their hands e.g. the rising price of oil isn't something that Cameron or the Bank of England can do anything about

Some things that can be done include:
Reducing firms' costs in other areas in order to counteract their rising costs of raw materials. This could be in the form of reducing corporation tax or limiting rises in fuel duty

A series of supply side policies also aimed at reducing costs e.g. investing in research and development in order to find new and improved production methods which reduce production costs. Investing in renewable energy could also be an option so that, in the long run, firms can move away from using oil which is constantly rising in price

Hi can anyone tell me what the consequences for the UK are of say Croatia joining the EU? Really stupid question but I've forgotten it all

that was really helpful, thank you ! =D another quick question, you know the principles of taxation? how would we incorporate that into an answer?

is it really risky that I havent revised anything on globalisation ? xxx

didnt see this thread been looking at a dead one, but has anyone got a document or something with revision notes separated into the different topics which can come up?
i.e. one on exchange rates, one on international trade, etc. - i cant go through the text books when theres a number of chapters which all overlap each other its kills my brain

I've never heard of the principles of taxation to be honest with you

nah but it might mean you have to do the EU context

For protectionist policies can someone please explain what an export subsidy is?
It shifts supply out so does that mean domestic consumers will find domestic products cheaper? How does this help exports? thanks

An export subsidy is where the government gives domestic exporters low-interest loans or tax relief so that they can export their goods more cheaply, which therefore improves their competitiveness.

In this way, domestic consumers would pay more for a product than the foreign consumers importing it, so it encourages exports

But then how is this a protectionist policy? It encourages trade? If domestic producers would pay more for a product then wont this encourage importing? Thanks

Possibly means the Cannons of Taxation (Adam Smith)