Demand and supply

(a) A rise in the cost of refining petrol (H)

(b) A fall in bus and train fares (B)

(c) A fall in the price of crude oil and an increase in the priceof cars(E)

(d) A rise in tax on petrol and a reduction in tax on cars(A)

Pound up as fears of Bank rate change ease

Sterling rallied sharply on foreign exchange markets yesterday as the Bank of England emphasised that it had no immediate plans to change the rate that it pays to commercial banks on sums deposited with it overnight. However, economists attending a “teach-in” at the Bank yesterday were said to have received indications that no such move was imminent, with officials suggesting the Bank was “some way” from deciding on any change. Sterling, which had traded as low as $1.5768 on Monday, rallied as high as $1.5989 once the comments began to circulate in the market. Yields on two-year gilts also rose by 14 basis points at one stage, one of the biggest one-day moves this year.

Bank defends Mervyn King.

MERVYN KING is not trying to talk down the pound, say Bank of England sources, who insist that the currency markets have misinterpreted the governor’s comments. The pound dropped below €1.09 and $1.60 on Friday, its lowest for nearly six months and four months respectively. Traders accused the Bank of trying to talk down the pound deliberately. It countered that the bulletin comment was an attempt to explain the fall in sterling that had already occurred since 2007, and was not a suggestion that it should fall further. Similarly, King’s comment was to a Newcastle newspaper that is running a campaign to boost local exports. The fall already recorded would be “helpful” in that effort, he said.

Multiple choices.

163-a 170-c 177-b 184-d

164-b 171-a 178-d 185-b

165-b 172-c 179-d 186-d

166-a 173-b 180-c

167-a 174-c 181-c

168-b 175-d 182-b

169-b 176-c 183-a

187-b 193-c 199-c 205-c

188-b 194-b 200-d 206-b

189-b 195-c 201-b 207-d

190-a 196-a 202-c

191-a 197-a 203-d

192-b 198-a 204-a

MPC member says cheap finance is gone for good

The member and leader of the Bank of England's interest rate setting committee said that finance never can be good as it was before the credit crunch and identified bank lending as the chief obstacle to Britain's economic recovery. And in the end he add"I think most people are starting to realise that finance is never going to be quite as cheaply available as it was in the years prior to the crash. Businesses are becoming more realistic about what they can get."

IMF leader warns of war in poor countries

The head of the International Monetary Fund warned today that the unemployment was caused by global financial crisis. And greater poverty and prolonged civil unrest and wars among poor nations can happen.But in the end of his speech he add that we almost see the light at the end of tunnel and even if crisis is not finished yet,we hope that crisis will stop in 2010.

Real Madrid don't have a problems with money.

There is recession all most everyone is suffering from the recession. This means most clubs too.

There are however if 

you exceptions for instance Manchester city and Chelsea, 

both clubs owned by people who got there money through oil. Another exception is Real madrid. Real madrid are very lucky because all spanish people and even government. Almost all banks in Spain belongs to government and because of that Real Madrid taking money fro

m the banks and don't give it back in time!!!! 

The Netherlands typifies a European fear that any big fiscal stimulus might just benefit others

Europe and america has a disagreement about the need to use fiscal stimulus to fix economic crisis and barrack obama called this debate as a “phoney debate”. Reasons for this debate are whether this stimulus wil be helpful; fiscal policy includes increase in government spending, while in european union it was said that there is an increase in demand from southern countries to get more communal fund and also there are many aims for which EU has to spend money.
 There are many other national problems in EU such as unemployment which government has to solve by increasing spending, however there is a scarcity of taxation revenueand labour party opposed public spending cuts. 
A surplus projected by Dutch government became a 5.5% deficit and one economist said that the government has to take some measures in order to solve this problem such as reduce wages in order to boost exports.

Home work Economics

Economics studies how to allocate scarce resources among alternatives uses.So the importance of economics is that without this science it would be  very difficult to use given limited amount of resources in the most effective and productive way. Economics consist of micro -and macroeconomics former studies economy in particular country solves real life problems such as  inflation ,unemployment ,etc. While the latter studies economic  relations between countries and how they agree about different aspects  such as export and import. Economics explains present in modern world such as credit crunch,overcrowding of some countries, etc.

As we know there are unlimited wants of that people have and even if they get at once everything what they want, new wants will appear. However, needs of people are limited to the most important things such as food and cloth,and so economics studies the relation between limited resources and unlimited wants.