[tarek1]

(Original post by clown100)
Hi mate ur explanation was spot on for trade deflection, where we went wrong is that the producers has to pay the tariff as you must remember from unit 1 that a tax is ALWAYS placed on a producer. For this reason the producer would trade deflect.

Thats good to hear, thanks for letting me know.

[tarek1]

These are basically a list of everything you need to know for AQA unit 4. If you can answer all these questions, then you should be good for the exam, providing the structure is good. I've done the same thing for Unit 3 so have a look on that thread.

Chapter 11

Measure of economic growth.
What is the PPB curve.
What is the economic cycle.
How to generate economics growth, (supply and demand side factors)
How to improve physical capital.
Factors that increase activity/ productivity in the economy.
Factos that reduce the productivity rate.
What are the drawbacks of using GDP as a measure of living standards.
Alternatives to national income, NI.
Is economic growth sustainable.
Explanations of the economic cycle.
What is the multiplier effect.

Chapter 12

How to measure inflation.
Limitations of CPI.
Causes of inflation.
Explain the quantity theory of money, and state the formula.
Types of deflation.

Chapter 13

How to measure unemployment.
Types of unemployment.
Causes of unemployment.
Drawbacks of unemployment, (social and economic costs)
Benefits of unemployment.
What are the demand side factors to reduce unemployment.
What are the supply side factors to reduce unemployment.
What is the phillips curve and explain why the Long run phillips curve is vertical.
What is the Non accelerating inflation rate of unemployment.
What is stagflation.

Chapter 14

Reasons for taxation.
Types of taxation.
What is Adam Smith's law of taxation, 'cannons of taxation'.
Benefits and drawbacks of indirect taxation.
Types of government expenditure.
What are balanced budget, budget deficit and budget surplus.
What is the fiscal stance and draw the graph.
Explain the term public sector net cash requirement.
Benefits and drawbacks of a budget deficit.
What are the main fiscal rules.
What are the limitations of the fiscal policy.

Chapter 15

What are the two main types of money.
What effects demand for holding money.
Types of assets.
Types of interest rates.
What are the main functions of money.
What are the main objectives of the Central bank.
What are policy indicators and instruments.

Chapter 16

Types of exchange rate systems.
Benefits and drawbacks of floating exchange rate system.
Factors that effect the exchange rate.
What is foreign direct investment.
What is Hot Money.
What is a fixed exchange rate system.
Types of fixed exchange rates.
Benefits and drawbacks of a fixed exchange rate.

Chapter 17

What is the difference between the current account and the financial account.
What are the three main components of the financial accounts.
Does a current account deficit matter.
What policies are used to deal with a deficit in current account.
Explain the J-curve.
Policies to control and current account surplus.

Chapter 18

What are the factors that have contributed to globalisation.
Benefits and drawbacks of globalisation.
What are the needs and wants of developed and developing countries.
What is the Marshall Lerner condition.
Arguments for and against international trade restrictions.
Types of restrictive trade practices.

Chapter 19

What is the structure of the EU.
Why was the EU formed.
What is the single market.
What are the benefits and drawbacks of the single market.
How to increase EU integration.
What is trade diversion, deflection, and creation.
What are the benefits and drawbacks of expanding the EU.
What are the benefits and drawbacks of Uk joining the single currency EURO.

If there is a question someone doesn't understand then just quote the question and it can go up for discussion.

[megan.cl]

@tarek1

WOW. that list is long... but thanks for it, ill have a look over it when im revising tommorow but i know i dont understand the inflation on the supply of money? Im not sure what its called but its the third type of inflation and theres a Fisher equation with it? Any help?

[rss.914]

(Original post by tarek1)
Can anyone tell me the Benefits for using Cost Benefit analysis?

isnt that unit 3

[tarek1]

(Original post by megan.cl)
@tarek1

WOW. that list is long... but thanks for it, ill have a look over it when im revising tommorow but i know i dont understand the inflation on the supply of money? Im not sure what its called but its the third type of inflation and theres a Fisher equation with it? Any help?

No worries, I've started writing up the answers to them all as well, so keep an eye on this thread, i'll get them up asap.

The quantity theory of money, which was devised by Irving fisher, is Money supply * Velocity of circulation (which is the number of times a single unit of money has been passed on) = Price level * Y (real GDP).
With this equation, we assume that the velocity of circulation and the output is constant, so therefore, an increase in money supply would lead to a direct increase in Price level.

Also, if your doing Unit 3, I've put a list on that thread of everything you need to know for that exam as well.

[tarek1]

Sorry, thought this was Unit 3 thread.

[rss.914]

For this question from the June 10 paper what could be said....

"Assess the impact on UK macroeconomic performance of a prolonged period of
deflation."

[tarek1]

(Original post by rss.914)
For this question from the June 10 paper what could be said....

"Assess the impact on UK macroeconomic performance of a prolonged period of
deflation."

Benefits of deflation.

- Lower prices = better export performance since products would be more competitive in international markets. Opportunities for employment as businesses involved in exports grow.
- Possibility of inward investment as prolonged deflation can cause the exchange rate to depreciate making uk more attractive to foreign investors.
- The possibility of expansionary polices to stimulate growth.
- Fewer imports.

Drawbacks

- Fall in real cost of borrowing increases.
- Uncertainty for businesses and consumer could lead to postponed spending. The effect on AD, and GDP growth.
- People may save more. Business
- Businesses may hold back on investment.
- Lower levels of domestic demand = unemployment. Phillips curve and a fall in inflation can cause higher levels of unemployment.

However

- Is it structural imbalances in the economy, or cyclical.
- How much is the deflation figure. May not be a cause for concern if small.
- How long is it expected to last.
- Benign or malevolent?

[megan.cl]

(Original post by tarek1)
No worries, I've started writing up the answers to them all as well, so keep an eye on this thread, i'll get them up asap.

The quantity theory of money, which was devised by Irving fisher, is Money supply * Velocity of circulation (which is the number of times a single unit of money has been passed on) = Price level * Y (real GDP).
With this equation, we assume that the velocity of circulation and the output is constant, so therefore, an increase in money supply would lead to a direct increase in Price level.

Also, if your doing Unit 3, I've put a list on that thread of everything you need to know for that exam as well.

Thanks, is there any way to expand on the quantity theory of money? Or do we just mention it?

And i did unit 3 in Jan so i dont need that but thanks anyway!

[tarek1]

(Original post by megan.cl)
Thanks, is there any way to expand on the quantity theory of money? Or do we just mention it?

And i did unit 3 in Jan so i dont need that but thanks anyway!

Well in my opinion, the quantity theory of money can be used as a potential argument against quantitive easing, and expansionary monetary policy. Or evaluative point, stating that the quantity theory of money suggests that the possibility of inflation is likely, and hence should taken into account before increasing the money supply.

[SeeTin]

does anyone have the mark scheme for jan 2012 econ 4??

[megan.cl]

(Original post by tarek1)
Well in my opinion, the quantity theory of money can be used as a potential argument against quantitive easing, and expansionary monetary policy. Or evaluative point, stating that the quantity theory of money suggests that the possibility of inflation is likely, and hence should taken into account before increasing the money supply.

Thanks, though we haven't learnt anything about quantative easing? What is it?

[tarek1]

(Original post by megan.cl)
Thanks, though we haven't learnt anything about quantative easing? What is it?

Quantitive easing is the use of the monetary policy to pump more money into the economy. In 2011 the MPC pumped £75bn into the uk economy, to try and stimulate growth, and increase the availability of finance for investment etc.

[xXACEXx]

What are yours guys predictions for the essays?
I have a strong feeling something will come up on globalisation for section 1 data question.

[Hemzo]

(Original post by megan.cl)
Thanks, though we haven't learnt anything about quantative easing? What is it?

http://www.youtube.com/watch?feature...&v=J9wRq6C2fgo

This might help. I had no clue about quantitative easing until I saw this a few times.

[tarek1]

http://www.youtube.com/watch?v=2EVWE5XNeDc

Really interest documentary in the effects of globalisation.

[rss.914]

has anyone got the jan 12 papeR?

[theseeker]

Jan 2012 paper anyone?

[ilovecatsforlife]

It was balance of payments, exchanged rates for section B and something else. for section A- the global question is almost always globalisation to do with trade/impact on UK economy, if you read the news and are into protectionism, investment, trade, ease of business, international competitiveness - exchange rates, inflation and tax rates, as well as debt rate and size of public section, then you'd probably like it. As for Euro context, it's similar but just within Europe.

In 2012, it was fiscal policy for Euro and impact of Indian growth on UK economy for global

[The Doggfather]

Any particular topics you can get away without knowing?

Like for Econ 3 in January, I did not learn labour market