Strategic Planning

Reading and Understanding Economics by Kevin Boakes

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By Kevin Boakes

Interpreting and figuring out Economics helps you to become familiar with the entire matters in present day economic system mentioned at size all over you glance within the media leaving you armed with a brand new vocabulary of key monetary phrases able to behavior your individual research subsequent time you learn a newspaper or hearken to the inside track for company or excitement

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Extra resources for Reading and Understanding Economics

Sample text

The term ‘real’ means after allowing for inflation. For example, a company might spend £500m more on new investment this year compared to last year. However, if the costs of investment have increased by £400m over this time period, the real increase in investment is only £100m. ■ What do you think? 1. What are the main functions of OPEC? 2. What are the main economic reasons that the oil companies could not respond to the signal of higher prices and increase production much more quickly? 3. Why can it be very difficult to maintain a cartel in the long term?

Despite the cost the article reports record demand from families wanting to buy their children what they believe are the best educational opportunities. In response to this the private sector is looking to increase the supply of private school places with schools like Brighton College looking to expand to meet the higher demand. So what are they buying? g. QXP:M00_BOAK2540_01_SE_C00 12/11/08 14:46 Page 24 Article 3 Is it worth it? As the cost of private schools soars, we look at what parents get for their money ■ improved career chances; ■ a school’s stated aim of developing skills and confidence of each individual pupil is more likely to be realised in the smaller setting of a private school; ■ networking opportunities later in life through the ‘old boy (or girl) network’ may be of benefit particularly in the world of work.

What do you think? 1. What are the main functions of OPEC? 2. What are the main economic reasons that the oil companies could not respond to the signal of higher prices and increase production much more quickly? 3. Why can it be very difficult to maintain a cartel in the long term? 4. Why might you expect to see a fall in oil prices as a result of the slowdown in international economic activity? 5. The article reports that there has been a sharp surge in nominal investment in new oil 19 2 THE ECONOMICS OF DEMAND AND SUPPLY There are many different types of crude oil.

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