Click on the link for some useful up to date info on UK & the Euro...Wednesday 28 April 2010
Economics Essays: Why the UK will never join the EURO.
Click on the link for some useful up to date info on UK & the Euro...
Sunday 25 April 2010
IGSCE Economics - Great macro revision video
Check out the video clip from the icon below, write down as many economic concepts as you can.
GSCE Economics - Great macro revision video
Once you have done this, define all the concepts you listed, by looking through your notes and textbooks.
GSCE Economics - Great macro revision video
Once you have done this, define all the concepts you listed, by looking through your notes and textbooks.
Tuesday 20 April 2010
Econ Unit 2 Revision checklist
Thanks to Mrs Richardson for this Economics checklist. All year 12 and any year 13 students retaking this unit should work through it and then attempt past questions from your packs. (NB It hasn't transferred very well, but I am sure you get the picture..Mr Bentley - stuck in UK)
AS ECONOMICS
UNIT 2 Mrs Richardson
Revision list
1. Define GDP 2
2. Define economic growth 2
3. What are the 4 macro economic objectives?
4. Examine reasons why changes in real GDP per head might be considered as an inaccurate indicator of changes in living standards. 4 -10
5. Explain benefits of using GDP to measure changes in standards of living 4-8
UNEMPLOYMENT
6. Define full employment 2
7. Explain causes of unemployment 8
8. Explain how unemployment is measured in the claimant count and Labour force survey (ILO) 4-8
9. Explain one reason why ILO is above claimant count survey. 4
10. Give 2 reasons why ILO might be preferred to claimant count measure of unemployment. 4-6
11. Explain why the claimant count rate can fall more quickly than the labour force survey rate of unemployment. 4
12. Explain the problems of the definition of unemployment 4-8
13. Explain problems of an economy experiencing full employment. 4/6
14. Explain the costs of unemployment. 4-8
16. INFLATION
Define inflation. 2
17. Explain how the Consumer price index is calculated. 4
18. Explain how retail price index is measured and the RPIX. 4
19. Define inflation target. 4
20. Explain significance of an inflation rate persistently below the government’s target. 5
21. Explain how the rate of inflation is measured. 4
22. Explain 2 disadvantages of a rising inflation rate. 4/6
23. Identify 2 economic consequences of inflation being lower than expected. 4
ECONOMIC GROWTH
24. Discuss 2 reasons why economic growth is inadequate as a measure of changes in living standards over time. 4-8
25. Explain disadvantages of economic growth 4-8
26. Explain advantages of economic growth 4-8
27. Evaluate the benefits of economic growth. 15
28. Explain what is meant by the Human Development Index 4
29. Explain the advantages of the HDI 4-8
30. Explain the disadvantages of using HDI to measure the changes in living standards. 4-8
31. What other ways are there to measure the changes in living standards. 4
32. Define net injection 2-4
33. Define net withdrawal 2-4
BALANCE OF PAYMENTS
34. Explain balance of payments deficit and surplus 4
35. Define bop disequilibrium 4
36. Analyze impact of rise in exports on GDP and BOP. 15
37. Outline 3 main components of the current account of the balance of payments. 6
HOUSE PRICES
38. Evaluate how increases in house prices affect price level and real output. 4-8
39. Explain relationship between house prices and consumer spending. 4 - 8
40. Explain how increases in house prices increase AD. 4-8
AS/AD
41. Use AD/AS diagram to :
• Show effect of investment
• Impact of the change in oil and energy prices
• Increase in government spending
• Changes in interest rates
• Increase in house prices
• Fall in company investment
• Making reference to the multiplier, evaluate use of fiscal policy on AS/AD
• Implications of more regulations on businesses
• Fall in GDP
• Rise in consumer confidence
• An economy heading into recession 15
MONETARY POLICY
42. Explain how monetary policy works 4-8
43. Explain advantages of monetary policy 4-8
44. Explain disadvantages of monetary policy 4-8
45. Assess impact of a cut in interest rates on distribution of income.
Assess implications on the economy of a cut in the interest rates 8
15
46. Explain how changes in interest rates effect AD. 4
47. Outline 2 sources of information apart from exchange rates used by the Bank of England’s Monetary Policy Committee when it makes interest rate decisions. 4 - 8
48. Evaluate effectiveness of monetary policy as a means of achieving price stability 15
49. Assess how sterling exchange rate might have contributed to low rate of inflation. 15
FISCAL POLICY
50. Explain how fiscal policy works. 4-8
51. Explain the advantages of fiscal policy 4-8
52. Explain the disadvantages of fiscal policy 4-8
53. Explain how fiscal policy can increase AD. 4-8
54. Evaluate use of fiscal policy to minimize cyclical fluctuations in growth f real GDP (use AS/AD) 15
55. Examine effectiveness of fiscal policy for a country faced with both high levels of inflation and a large budget deficit. 15
DEMAND SIDE POLCIES
56. To what extent do demand side polices lead to conflicts between macro economic objectives? 15
57. Evaluate effects of tighter monetary and fiscal policy on macro economic objectives. 15
58. Define government budget deficit 2-4
59. Evaluate why a change in government budget deficit may lead to a change in aggregate demand – use AS/AD diagram. 14
60. Explain benefits of demand side policies 8
61. Explain disadvantages of demand side policies. 8
62. Explain effectiveness of monetary policy and fiscal policy in aiming to achieve:
• Low inflation
• High economic growth
• Increase employment
• Reduce a bop deficit 15
63. To what extent is fiscal policy more effective than monetary policy in achieving the macro economic objectives? 15
64. Discuss extent to which the use of demand side policies to achieve full employment might conflict with bop equilibrium and concern for environment. 15
65. Examine why demand side polices might be ineffective in achieving long term economic growth. 15
SUPPLY SIDE POLICIES
66. Explain what supply side policies are giving examples 8
67. Explain advantages of Supply side polices 8
68. Explain disadvantages of supply side policies 8
69. Examine the likely effect of supply side polices for the control of inflation 15
70. Evaluate use of supply side polices in raising the level of output in an economy which is near to full employment 15
71. Evaluate the use of supply side policies (adv & disadv) 15
EXCHANGE RATES
Define the value of sterling against the euro
Appreciation and depreciation
2-4
72. Explain factors affecting the value of currencies 6-8
73. Examine likely effect of a fall in the value of sterling on AD. 6
74. Examine likely effects of a rise in the value of sterling on an economy. 15
75. Explain the effect on the economy of an increase in the value of its currency. 6-8
76. Explain likely effect on inflation in the fall of the value of the pound exchange rate may lead to unemployment in manufacturing 6
PRODUCTIVITY
77. Assess the significance of 3 factors which explain UK’s failure to increase its productivity. 8
78. Analyze 2 possible effects of productivity improvements on UK economy. USE AS/AD diagram. 15
79. Assess effectiveness of policies aiming to increase employment. (adv & disadv) 15
80. Assess problems of the productivity gap 15
OTHER DEFINITIONS
81. Define hourly productivity
Aggregate demand
Productivity gap
Real income and wealth
Export led growth
Import led growth
Multiplier effect
Stagflation
Investment low productivity
Productivity push 2-4
82. Explain 2 causes of the inequality of income distribution 4/6
83. Explain 2 factors that could increase household consumption. 4/6
AS ECONOMICS
UNIT 2 Mrs Richardson
Revision list
1. Define GDP 2
2. Define economic growth 2
3. What are the 4 macro economic objectives?
4. Examine reasons why changes in real GDP per head might be considered as an inaccurate indicator of changes in living standards. 4 -10
5. Explain benefits of using GDP to measure changes in standards of living 4-8
UNEMPLOYMENT
6. Define full employment 2
7. Explain causes of unemployment 8
8. Explain how unemployment is measured in the claimant count and Labour force survey (ILO) 4-8
9. Explain one reason why ILO is above claimant count survey. 4
10. Give 2 reasons why ILO might be preferred to claimant count measure of unemployment. 4-6
11. Explain why the claimant count rate can fall more quickly than the labour force survey rate of unemployment. 4
12. Explain the problems of the definition of unemployment 4-8
13. Explain problems of an economy experiencing full employment. 4/6
14. Explain the costs of unemployment. 4-8
16. INFLATION
Define inflation. 2
17. Explain how the Consumer price index is calculated. 4
18. Explain how retail price index is measured and the RPIX. 4
19. Define inflation target. 4
20. Explain significance of an inflation rate persistently below the government’s target. 5
21. Explain how the rate of inflation is measured. 4
22. Explain 2 disadvantages of a rising inflation rate. 4/6
23. Identify 2 economic consequences of inflation being lower than expected. 4
ECONOMIC GROWTH
24. Discuss 2 reasons why economic growth is inadequate as a measure of changes in living standards over time. 4-8
25. Explain disadvantages of economic growth 4-8
26. Explain advantages of economic growth 4-8
27. Evaluate the benefits of economic growth. 15
28. Explain what is meant by the Human Development Index 4
29. Explain the advantages of the HDI 4-8
30. Explain the disadvantages of using HDI to measure the changes in living standards. 4-8
31. What other ways are there to measure the changes in living standards. 4
32. Define net injection 2-4
33. Define net withdrawal 2-4
BALANCE OF PAYMENTS
34. Explain balance of payments deficit and surplus 4
35. Define bop disequilibrium 4
36. Analyze impact of rise in exports on GDP and BOP. 15
37. Outline 3 main components of the current account of the balance of payments. 6
HOUSE PRICES
38. Evaluate how increases in house prices affect price level and real output. 4-8
39. Explain relationship between house prices and consumer spending. 4 - 8
40. Explain how increases in house prices increase AD. 4-8
AS/AD
41. Use AD/AS diagram to :
• Show effect of investment
• Impact of the change in oil and energy prices
• Increase in government spending
• Changes in interest rates
• Increase in house prices
• Fall in company investment
• Making reference to the multiplier, evaluate use of fiscal policy on AS/AD
• Implications of more regulations on businesses
• Fall in GDP
• Rise in consumer confidence
• An economy heading into recession 15
MONETARY POLICY
42. Explain how monetary policy works 4-8
43. Explain advantages of monetary policy 4-8
44. Explain disadvantages of monetary policy 4-8
45. Assess impact of a cut in interest rates on distribution of income.
Assess implications on the economy of a cut in the interest rates 8
15
46. Explain how changes in interest rates effect AD. 4
47. Outline 2 sources of information apart from exchange rates used by the Bank of England’s Monetary Policy Committee when it makes interest rate decisions. 4 - 8
48. Evaluate effectiveness of monetary policy as a means of achieving price stability 15
49. Assess how sterling exchange rate might have contributed to low rate of inflation. 15
FISCAL POLICY
50. Explain how fiscal policy works. 4-8
51. Explain the advantages of fiscal policy 4-8
52. Explain the disadvantages of fiscal policy 4-8
53. Explain how fiscal policy can increase AD. 4-8
54. Evaluate use of fiscal policy to minimize cyclical fluctuations in growth f real GDP (use AS/AD) 15
55. Examine effectiveness of fiscal policy for a country faced with both high levels of inflation and a large budget deficit. 15
DEMAND SIDE POLCIES
56. To what extent do demand side polices lead to conflicts between macro economic objectives? 15
57. Evaluate effects of tighter monetary and fiscal policy on macro economic objectives. 15
58. Define government budget deficit 2-4
59. Evaluate why a change in government budget deficit may lead to a change in aggregate demand – use AS/AD diagram. 14
60. Explain benefits of demand side policies 8
61. Explain disadvantages of demand side policies. 8
62. Explain effectiveness of monetary policy and fiscal policy in aiming to achieve:
• Low inflation
• High economic growth
• Increase employment
• Reduce a bop deficit 15
63. To what extent is fiscal policy more effective than monetary policy in achieving the macro economic objectives? 15
64. Discuss extent to which the use of demand side policies to achieve full employment might conflict with bop equilibrium and concern for environment. 15
65. Examine why demand side polices might be ineffective in achieving long term economic growth. 15
SUPPLY SIDE POLICIES
66. Explain what supply side policies are giving examples 8
67. Explain advantages of Supply side polices 8
68. Explain disadvantages of supply side policies 8
69. Examine the likely effect of supply side polices for the control of inflation 15
70. Evaluate use of supply side polices in raising the level of output in an economy which is near to full employment 15
71. Evaluate the use of supply side policies (adv & disadv) 15
EXCHANGE RATES
Define the value of sterling against the euro
Appreciation and depreciation
2-4
72. Explain factors affecting the value of currencies 6-8
73. Examine likely effect of a fall in the value of sterling on AD. 6
74. Examine likely effects of a rise in the value of sterling on an economy. 15
75. Explain the effect on the economy of an increase in the value of its currency. 6-8
76. Explain likely effect on inflation in the fall of the value of the pound exchange rate may lead to unemployment in manufacturing 6
PRODUCTIVITY
77. Assess the significance of 3 factors which explain UK’s failure to increase its productivity. 8
78. Analyze 2 possible effects of productivity improvements on UK economy. USE AS/AD diagram. 15
79. Assess effectiveness of policies aiming to increase employment. (adv & disadv) 15
80. Assess problems of the productivity gap 15
OTHER DEFINITIONS
81. Define hourly productivity
Aggregate demand
Productivity gap
Real income and wealth
Export led growth
Import led growth
Multiplier effect
Stagflation
Investment low productivity
Productivity push 2-4
82. Explain 2 causes of the inequality of income distribution 4/6
83. Explain 2 factors that could increase household consumption. 4/6
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