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To ensure resources are not wasted.

Fiscal policy involves using taxation revenue and government spending to improve the state of the economy. During times of recession and crisis, governments will often use expansionary fiscal policy (lowe...

Each economic agent has certain objectives, and they respond to incentives in order to maximise these goals. Incentives refer to potential monetary gains (e.g. profit incentives), or utility gains (e.g. f...

Loose monetary policy is where the Bank of England make the decision to decrease interest rates, therefore lowering the cost of borrowing money and lowering the reward of saving money, meaning more spendi...

Comparative advantage is when a firm or country can produce a good at a lower opportunity cost than another firm or country. Opportunity cost refers to the value forgone when alternative is chosen. By cou...