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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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 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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Using a Circular Flow of Income diagram explain the factors that determine the level of economic activity in a country’s economy

The circular flow of income diagram illustrates how income flows through an economy. Firms in order to produce goods and services require command over factors of production; entrepreneurs achieve this command by purchasing or hiring the required factors of production. Households supply the labour which is a factor of production Households are the consumers of

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