Definition of Retrenchment Retrenchment in business occurs when they cut down or reduce something to become more financially stable. When does a business use retrenchment? Retrenchment could occur during a recession It could occur when a company is going through financial difficulty The impact of an economic shock to the economy such as the coronavirus […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes  What are tradable pollution permits? Tradable pollution permits is a system created to encourage firms to reduce their overall pollution levels. It is a cap and trade system allowing firms to sell any unused permits and buy […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Natural Monopoly What is a Natural Monopoly A Natural Monopoly occurs where the industry can only support one firm. Characteristics of Natural Monopolies High start-up costs High fixed costs High barriers to entry Unique product or […]

Market Capitalisation This is the total market value of all of a company’s outstanding shares. Market capitalisation is calculated by multiplying a company’s outstanding shares by the current market price of one share. This figure is used to determine a company’s size.

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes  Difference between Capital Expenditure, Current Expenditure and Transfer Payments Capital Expenditure – this is money spent on assets that can be used several times. For example, it can be government expenditure on new infrastructure Current Expenditure – this […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Market Failure in the Financial Sector – situations where there is a loss of economic output because Financial Markets are unable to operate efficiently Types of Market Failure in the Financial Sector 1. Moral Hazard Moral Hazard – […]

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes Factors influencing Growth & Development 1. Savings Gap – the Harrod-Domar Model The Harrod-Domer Model illustrates how countries with a lower GDP per head are likely to experience more difficulty in financing investment due to their […]