2017 ppqs Flashcards
Describe what is meant by “GDP growth
an increase in the value of goods and services produced in an economy within a period of time
Describe one method of calculating the unemployment rate in the UK
Labour Force Survey is a quarterly survey of a large number of households about their employment status. (1)
The survey asks questions about who is currently available for work, looking for work etc. (1)
From this survey the total unemployed population is assessed
Describe ways a government can improve the geographical mobility of
labour.
Provision of affordable housing. (1)
Financial help with relocation costs. (1)
Ensure suitable education places available. (1)
Ensure incentives in place, eg London Living
Allowance. (1)
Improve transport infrastructure to allow travelling
Describe what is meant by “real terms”.
Real values are adjusted for inflation. (1)
This allows comparisons of values to be made over time without the effects of inflation
Explain factors that may have caused Scottish export volumes to rise.
Weak sterling (ID) resulting in UK exports being cheaper. (1) Therefore demand for UK exports will increase.
Increase in advertising Scotland’s exports/Scottish trade envoys negotiating deals (ID) increasing markets
Scotland has a skilled workforce (ID) – many universities producing skilled labour/entrepreneurs
Describe possible disadvantages of Foreign Direct Investments (FDI) to the
Scottish Economy.
There may be increased negative externalities, such as congestion and pollution. (1)
The profits from the business will be repatriated to the home country. (1) This is an outflow/this is bad for the Balance of Payments/this means less money is circulating in the UK economy
Management jobs may not be created/top jobs in the multinationals may be retained for employees of the home country. (1) ‘Screwdriver’ jobs which are created do not create as much potential for growth/improved standards of living
Tax avoidance by some multinationals reduces government income.
Describe benefits “a series of infrastructure projects” may have on the Scottish economy.
It will create jobs. (1) This may result in a positive multiplier effect/increased national income
Scotland may attract more FDI/investment (1) which will lead to increased jobs/wealth/growth.
Scotland’s unemployment rate may fall (1) this may mean less requirement for the government to fund benefits.
Explain, using a diagram, the shape of a long run average cost curve.
use other deck to do now
Describe what is meant by Scotland’s budget deficit.
A budget deficit refers to a situation in which the government’s outgoings are more than their incomings/ government planned spending is more than planned tax receipts. (1)
A budget is a plan for spending and revenue
Describe factors which may have caused Scotland’s budget deficit to be
higher than the rest of the UK.
Government spending per capita in Scotland is higher than the rest of the UK/tax revenue is Scotland per capita is lower than the rest of the UK. (1)
Scottish government have devolved powers to adjust some benefits and have increased these
infrastructure projects/new Forth Crossing/Edinburgh
trams
Explain how fiscal policy could be used to stimulate economic growth.
Increase spending (ID) would increase circular flow of income/money flowing in the economy/AD. (1) Eg increasing spending on public sector wages would lead to more disposable income/consumer spending.
Increased demand will signal firms to respond by producing more/increasing output. Increase output could lead to increased demand for labour.
Describe possible difficulties when using national income statistics to compare
different countries.
Each country may calculate in a different way making it difficult to compare. (1)
Calculation per capita is essential in order to compare. (1 development mark)
In some nations there is not the infrastructure to calculate statistics accurately. (1 development mark)
Inaccuracies/corruption in the data produced by each country. (1)
Currency variations
Describe the characteristics of a perfectly competitive market.
in other notes
Explain ways in which developed economies can provide economic assistance to
LDCs.
Capital aid (ID) to enable productivity improvements/ greater output. (1) This can be either directly with equipment or by loans/grants. (1 development mark) Examples include, providing equipment, infrastructure, drainage etc. (1 development mark)
Technical aid (ID) to enable better use of equipment etc. (1) Eg giving advice and training to local workers on the best way to use equipment. (1 development mark)
Educational aid (ID) to improve literacy/basic education. (1)
Health aid (ID) to improve health of workers. (1)
Eg medicines and inoculations
Describe ways in which the rapid growth rates in emerging economies might
affect the UK economy
Emerging economies provide a market for UK goods and services. (1) Their populations have increasing disposable incomes to spend on UK exports. (1 development mark) This may improve the UK’s Balance of Payments.
(1 development mark)
UK firm’s costs of production may increase due to increased demand on finite worldwide resources. (1)
UK firm’s costs of production may decrease due to cheaper raw materials/components from emerging economies. (1) This may negatively effect the Balance of Payments. (1 development mark) Firms may shed labour to cut costs, causing unemployment
