Quick Revision Quiz

inelastic

examples: -Asda/Sainsburys Merger

Scarcity is shown because it is not possible to produce outside of the PPF.

→ The contribution to UK GDP has been shrinking over time. → Most jobs in the sector are in London/South East. → The sector is prone to crises (2008, SVB 2023), with UK banks linked to global crises. → The sector is hard to regulate (regulatory capture) and prone to market failure. When banks fail, they need to be bailed out. → Possibility that growth in this sector 'crowds out' GDP growth as skilled graduates do not work in more productive sectors (Cecchetti and Kharroubi, February 2015)

At medium quantity of labour, as more workers are added the marginal product of labour decreases. This is because the opportunities for specialisation have passed and workers are likely to get in each other's way.

A tax that takes a higher proportion of income from low-income individuals.

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-Availability of substitute labour -Time frame -Training required

Spending on fixed assets which do not have to be renewed each year. Example: infrastructure.