“The market for t-shirts is perfectly competitive.” Do you think this statement is true or false?
Justify your answer using the basic characteristics of perfect competition (number of sellers, type of product, and barriers to entry).
ide to move their business out of the UK. This will lead in to people having less disposable income which will lead to them not having enough money to spend which would not boost the economy. The more the British economy does well, the more people would be attracted to migrate to the UK as it appealing for them to come settle here as Britain is a rich country and we have a lot to offer and help people. Another example is NatWest which is a European bank so if NatWest closes, the unemployment rates would increase as there would be a reduction in jobs if a business closes which leads to less people having a disposable income. Moreover “There were 31.81 million people with jobs in the three months to August, 106,000 more than the previous quarter and 560,000 more than a year earlier. The employment rate remained at its highest ever level of 74.5 per cent. At the same time, the jobless rate was frozen at 4.9 per cent but the number of people unemployed crept up by 10,000 between quarters. There are 118,000 fewer people out of work than the same period last year”. (Clements, 2016) According to “the forecast for GDP growth falling to 1.0% in 2016 and -1.0% in 2017, we can expect the unemployment rate to jump up to 6.5% by the end of 2017 as Credit Suisse analysts said. This expected rise in unemployment is likely to squeeze nominal household incomes as wage growth takes a hit”. (Rodionova, 2016) (Statistics, 2016b) Furthermore, if Britain leaves the EU it would reduce the number of foreign workers which will make the country less broad for example in skills. If people decide to leave, this would mean we are losing people with different abilities and skills. All this will result into people having less disposable income to spend. However, a benefit outcome is, more jobs available to the British citizens if foreigners decide to leave. The Housing market has also been affected by the Brexit as overseas property buyers are buying London properties after the shocking decision for the UK leaving the EU. In the UK, it is mostly foreigners buying properties, so the UK leaving the EU the housing market has fallen. For example, Estate agents in the UK have been swamped with calls from Chinese, Middle Eastern, Italian and Spanish buyers looking for a bargain after the pound tumbled to more than 30-year lows. Crime rate will increase due to Britain leaving the EU because of the situation happening in Syria. The more migrants the UK takes, the more vulnerable to terrorist attacks we are and this is one of the main reasons people wanted to leave the EU as they wanted less chances of anything happening. If the crime rate increases, this would affect the economy as people would have to pay for taxes if more people are going to prison or if any attacks happen etc. “Hate crime surged in England, Wales and Northern Ireland in the second half of July nearly a month after the EU referendum vote and still remains at significantly higher levels than a year ago. The latest set of figures quietly released by the National Police Chiefs’ Council on Wednesday shows a 49% rise in incidents to 1,863 in the last week in July in comparison to the previou>GET ANSWER