Economics Year 11 Help?

C

camwas92

New member
For Eco i need to answer 4 questions, if you could please help answer some of them by writing points or any information ill be really appreciative

They are
1) Discuss the impact of government decisions on household incomes
2) Use examples to illustrate how firms influence the level of economic activity
3)Examine the impact of interest rates on households and firms
4)Assess the influence of pressure groups on government policy
 
Firstly I am at work and I will try and answer as briefly as I can. Secondly I am a university graduate however I only had around 2 modules in economics so I am not sort of an expert in the subject.

1) Government decisions may include < increase or decrease in Government spending > or < increase or decrease in Taxation> These actions will surely have an impact on household incomes , why ?

An increase in government spending would stimulate investment, improve facilities etc... which may serve as a catalyst for companies to provide employment or increase wages.

Taxes on the other hand may either leave more disposable income or else decrease this income ( if taxes are increased)

2) Firms will influence the level of economic activity through their production levels, investment and employment ( Please double check these, I know its quite crude as a reply)

3) Interest rates will affect bond purchases, savings and loans

4) Pressure groups are important since they will influence government policy ( various examples can be mentioned eg Greenpeace).

That was my 2c, I am sorry but I cannot amplify further due to time restrictions
 
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