economics writing question
Solve ONE question out of the two below. The word limit is 2500.
1) Imagine that government agencies report that unemployment in the UK is increasing and becoming a real problem. One of the proposed solutions is a radical expansion of a state-funded life-long learning program which is supposed to allow workers to acquire new valuable skills and thus be a driver of the digital transformation of the UK economy. Using economic models from our course explain the potential advantages and drawbacks of such a policy.
2) Imagine that the energy and fuel prices in the UK are soaring and there seems no relief in sight. Using economic models from our course explain the consequences of that for:
a. Farming industry (assume that its competitive).
b. Market for solar panel installations (also assume that its competitive).
c. Market for electricity generation ? this one may be not competitive but note that different firms there may be using very different technologies for generating electricity.
d. Given your answer the question (c), think about windfall taxes on energy companies – is it a fair approach?
Note: It may be that different effects will pull variables of interest in different directions, then you are expected to describe these effects and explain, how they work. If several models could be used to explain some effect, it is good to list them and to explain their strengths and limitations.
Requirements: 2500 words
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