A-level Application Points

Question 1

Inflation rate

Question 2

Interest rate

Answer 2

4.25%

Question 3

Unemployment figures

Question 4

Demographics

Question 5

GDP

Question 6

National debt to GDP

Question 7

Main job types

Question 8

Trade balance

Question 9

Imports vs exports

Question 10

Types of imports

Question 11

Types of exports

Question 12

How much did uk government spend on servicing the debt

Answer 12

600 million a week

Question 13

Country with highest debt

Answer 13

Japan

Question 14

Government Debt/Borrowing App

Answer 14

• 26% of UK government is borrowed for 15 years+ (they have issued long-dated securities)
• 28% of debt is “index linked” (bond interest is linked to inflation)
• The average term of maturity of UK government debt is 17 years (Average G7 country is 7 years)
• Uk government has never defaulted to make interest/principal repayments of bonds.

-it costs the UK government £ to borrow

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Question 15

Uk tax avoidance & tax evasion figures

Answer 15

Latest HMRC estimate of non-compliance £32bn, or 5.1% of total tax revenues

Question 16

Greece Economy

Answer 16

Over the past 6 years Greece has had 7 Governments

Public Debt has continued to rise, reaching 180% of GDP by the end one 2015.

Greek pension system is in crisis - deficit of 11& of GDP

Greece has a very narrow tax base - Taxpayers in the highest income decile pay about 60% of personal income tax revenue, while 53% of wage earners and 85% of farmers are exempt from Tax.

Rates for all major taxes in Greece are higher than the euro-area average (Vat is 24%) this encourages tax evasion and also reduces labour market participation.

Question 17

Happiness index figures