Define unemployment and explain how it is measured

The unemployed are those individuals who do not currently have a job and who have actively looked for work in the last 4 weeks (International Labour Organisation). Individuals who looked for work in the past beyond 4 weeks but are not looking currently are not counted as unemployed. The employed are individuals who currently have

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Explain what is meant by market equilibrium and analyse the effects on the equilibrium price and quantity of; The introduction of a new, cost-saving technology and an increase in the price of a complementary good

The market is defined as that place where buyers and sellers come together to exchange goods and services for a particular price and quantity. It consists of both demand and supply. Demand representing consumer behaviour and supply represent firm behaviour. [Diagram demonstrating equilibrium] a. Introduction of a new, cost saving technology. This causes the supply

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Define what is meant by Economies of Scale and list and outline any 3 factors that would contribute to positive returns to scale (economies of scale) for a firm.Firms can experience both internal and external economies of scale

Internal Economies of Scale are economies or benefits which accrue from the increase in the scale of output of an individual firm and they provide benefits to that firm alone. They are usually classified as: (1) Technical Economies of Scale. (2) Marketing Economies of Scale. (3) Financial Economies of Scale. External Economies of Scale are

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Explain how it is possible for the banking sector to create purchasing power and the factors that determine the amount of (or the limits to) the amount of purchasing power that they can create. Make reference to Rwanda or another economy with which you are familiar

When a bank accepts a deposit and subsequently grants a loan it is not merely transferring purchasing power from lenders to borrowers but rather, because of the fractional reserve system, it can lend out a multiple of the original deposit and in this way actually create purchasing power. When a bank receives a deposit for

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