On day 30 of the Year 13 Recap we review the material relating to inequality and poverty.
Inequality and poverty are politically charged topics because they relate to the consequences of bad policy decisions and allocative inefficiency.Continue reading
On day 29 of the Year 13 Recap we review the field of macroeconomics titled development economics.
Development economics is a branch of economics established to evaluate the link between growth and development. This is because standard economic theory, up to that point, had always assumed that higher levels of growth would translate into improved living standards and put a country on a strong development path.Continue reading
On day 28 of the Year 13 Recap we review the concept of economic integration and discuss the different levels in which economic integration can come in.
Economic integration describes how countries take active steps to increase the amount of trade between themselves and the rest of the world. There are lots of competing terms that you need to be comfortable with such as a customs union, free trade agreement and single market.Continue reading
On day 27 of the Year 13 Recap we review the balance of payments and more specifically the solutions that are put forward to correct large trade deficits and surpluses.
A deficit may sound bad and a surplus may sound good, but the reality is that some countries have to run a large surplus to finance the large deficits belonging to other countries. So should we really be as concerned with these trade statistics as we might think?Continue reading