How And What

Advantages and disadvantages of free market economies

Advantages and disadvantages of free market economies This is a detailed analysis of some of the advantages and disadvantages of free market economies. A free market is an economic system in which a country’s capital, goods, and services are allowed to circulate freely. However, it lacks some of the safety nets that planned economies offer their citizens in case the economy crashes suddenly. What is a free market economy? A free market is an economy in which a substantial part of the economic activity is organised through free markets, […]

Factors affecting demand for labour (Labour markets)

By: Joe David | Tags:

Factors affecting demand for labour (Labour markets) This article explores some of the factors that affect the demand for labour. The term ‘labour’ refers to practical work, especially when it involves hard physical effort. It also refers to workers who do practical work with their hands (Cambridge Dictionary, 2021). What is demand for labour? Well, it is the number of labour-hours an employer needs to hire at a given point in time based on different variables. For example, an employer needs a total of 20 hours of work from employees […]

Differences between EDCs and LIDCs

By: Joe David | Tags:

Differences between EDCs and LIDCs This article aims to examine the key differences between EDCs and LIDCs. EDCs refer to emerging developing countries, while LIDCs refer to low-income developing countries. It goes without saying that countries in the world are now-a-days divided into three broad groups i.e. EDCs, LIDCs, and ACs (advanced countries), based on the economic and socio-cultural development they brought about over the years. This classification by the International Monetary Fund (IMF) is different from Brandt line, which divided the world as the rich north and the poor […]

What is productivity?

By: M Rahman | Tags: Economics

What is productivity? Productivity refers to the rate of output per worker or per machine in a factory (Bateman & McAdam, 2006). It describes a variety of measures of efficiency of production. In a simpler language, productivity refers to the amount of work produced either per worker or per hour worked. There are different kinds of productivity e.g. labour productivity, multi-factor productivity, and capital productivity. In a time of intense competition, organisations need to be highly productive in everything they do. In fact, productivity is a crucial factor not only […]

Opportunity cost: definition and meaning

By: M Rahman | Tags: Economics

There is no doubt that resources are limited. This scarcity of resources often makes the lives of decision makers very difficult. Therefore, economists focus on the optimal use of scare resources. Whenever there is scarcity, you need to make a choice. If you have £10, you can perhaps spend it on buying an economic textbook, or enjoying a meal in a restaurant. You cannot do both! Definition of opportunity cost Opportunity cost is one of the most fundamental ideas in economics. It refers to ‘the cost of a scarce factor […]

Types of economy (economic systems)

By: M Rahman | Tags: Economics

Economists recognize different types of economy (economic systems) and classify them in a number of ways. According to Hill (2012, p.52), there are ‘three broad types of economic systems – a market economy, a command economy, and a mixed economy’. However, in addition to these three systems, there is also another system called traditional economic system. Let’s now explore what these economic systems are. Types of economy (economic systems) Traditional economy Traditional economies are the most basic type of economy. In a traditional economy, tradition (customs, belief etc.) determines the […]