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F581/ F582 Economics June 2013

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Reply 360
Avatar for cheese94
cheese94
'A deficit could mean that the country is consuming more than its producing, this could put it into debt, lower unemployment and lower economic growth'

Why would a deficit increase debt? And why does it lower UE? I thought that a deficit increases Unemployment.. confused.
Reply 361
Avatar for iggyDash
iggyDash
2
12 hours left...lol
Reply 362
Avatar for cheese94
cheese94
Original post by iggyDash
12 hours left...lol


haha thanks for the reminder! :eek:
Original post by cheese94
'A deficit could mean that the country is consuming more than its producing, this could put it into debt, lower unemployment and lower economic growth'

Why would a deficit increase debt? And why does it lower UE? I thought that a deficit increases Unemployment.. confused.


is this the Current Account Deficit or the Budget Deficit?
Reply 364
Avatar for cheese94
cheese94
Original post by CTArsenal
is this the Current Account Deficit or the Budget Deficit?


Current account deficit
Original post by wolalala
what wold economic instability definition be?


Volatility in economic growth rates/inflation/employment or unemployment/exchange rates.
Reply 366
Avatar for iggyDash
iggyDash
2
OK anyone who want to be challenged

what are the advantages of international trade?
Reply 367
Avatar for riima786
riima786
Whats the definition for income redistribution?
Original post by iggyDash
OK anyone who want to be challenged

what are the advantages of international trade?

Increased choice, quality and lower prices for consumers
Allows a country to specialise
Domestic firms have a wider market to sell products
Original post by cheese94
Current account deficit


okay, so a Current Account Deficit would mean that imports are outweighing exports, so yeah the country could be consuming more goods from other countries than it's exporting out internationally - and I agree that it would cause unemployment to increase assuming ceteris paribus, since it's a component of AD and AD would be falling, so it definitely would not reduce unemployment if you're talking about all other factors remaining unchanged.

It would lower short-run economic growth since real GDP would be falling as a result of AD falling, but I'm not too sure about the debt part, where did you see this?
Reply 370
Avatar for M.I.A
M.I.A
Original post by iggyDash
OK anyone who want to be challenged

what are the advantages of international trade?


-Larger market
-Economies of scale
-Cheaper raw materials
-Specialisation
Reply 371
Avatar for iggyDash
iggyDash
2
Does anyone think a horrible question like - explain how inflation/unemployment is measured?
Reply 372
Avatar for riima786
riima786
Original post by iggyDash
OK anyone who want to be challenged

what are the advantages of international trade?


Increase consumer choice - better quality and cheap goods, which increase standard of living
businesses gain access to more markets - increase profit, which encourages investment
Specialisation
Reply 373
Avatar for iggyDash
iggyDash
2
Original post by M.I.A
-Larger market
-Economies of scale
-Cheaper raw materials
-Specialisation

Correct , came up in my exam last year got 0 marks as i said it would increase exports (pressure got to me) I lost a easy 4 marks which hopefully wont be happening tomorrow.
Original post by heirloom
Increased choice, quality and lower prices for consumers
Allows a country to specialise
Domestic firms have a wider market to sell products


and firms can take advantage of the economies of scale. They'll be exposed to a bigger market and may be able to lower the average costs per unit.
Reply 375
Avatar for iggyDash
iggyDash
2
Original post by riima786
Increase consumer choice - better quality and cheap goods, which increase standard of living
businesses gain access to more markets - increase profit, which encourages investment
Specialisation


Correct well done !:biggrin: if . lets hope it comes up ay?
Reply 376
Avatar for cheese94
cheese94
Original post by CTArsenal
okay, so a Current Account Deficit would mean that imports are outweighing exports, so yeah the country could be consuming more goods from other countries than it's exporting out internationally - and I agree that it would cause unemployment to increase assuming ceteris paribus, since it's a component of AD and AD would be falling, so it definitely would not reduce unemployment if you're talking about all other factors remaining unchanged.

It would lower short-run economic growth since real GDP would be falling as a result of AD falling, but I'm not too sure about the debt part, where did you see this?


thankss.. :biggrin: The 'lower UE' was written in the notes my teacher gave:rolleyes: i had a feeling it wasnt right. ermm the debt part i think someone mentioned it earlier.
Reply 377
Avatar for iggyDash
iggyDash
2
Lets throw potential questions at each other with marks
Original post by iggyDash
Does anyone think a horrible question like - explain how inflation/unemployment is measured?


"Describe how inflation is measured in the United Kingdom." came up in the January paper. Better go over unemployment then!!
Reply 379
Avatar for wolalala
wolalala
can someone give a 5mark explanation on how unemployment is measured please ? :P

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