corruption

Question 1

Corruption is when people working for the

Answer 1

Corruption is when people working for the government use public or government funds for their own private expenses.

Question 2

How much money has ‘gone missing’ from Venezuelan government funds in the last 10 years?

Answer 2

In the last 10 years, over $300 billion has ‘gone missing’ from Venezuelan government funds.

Question 3

What is corruption?

Answer 3

When public funds are used for private gain

Question 4

When you buy fair trade products, part of the

Answer 4

When you buy fair trade products, part of the price goes directly to the producers or farmers , increasing their incomes . This increases consumption which increases aggregate demand and economic development. Moreover, an increase in incomes means that the government collects more income tax revenue .

Question 5

What is the Fair Trade premium?

Answer 5

Another part of the fair trade price you pay goes towards the fair trade premium - a communal fund that fair trade farmers can spend on development themselves e.g. local schools, wells, hospitals.

Question 6

How can Fair Trade schemes lead to economic development?

Answer 6

When you buy fair trade products, part of the price goes directly to the producers, increasing their incomes. This increases consumption which increases aggregate demand and economic development. Moreover, an increase in incomes means that the government collects more income tax revenue

Question 7

Part of the Fair Trade price you pay goes towards the Fair Trade Premium which is

Answer 7

Part of the Fair Trade price you pay goes towards the Fair Trade Premium which is a communal fund for Fair Trade farmers. They can choose what the best use of the money is in order to help them develop .

Question 8

According to one investigation, how much of the extra price paid for Fair Trade products goes to the farmer?

Answer 8

One investigation found that less than 1% of the extra price made its way to the farmers.

Question 9

If farmers don’t receive a substantial part of the extra Fair Trade price their will not increase by a significant amount, meaning, will not increase by much. As a result, the increase in aggregate demand will be insignificant and the boost to economic will be limited.

Answer 9

If farmers don’t receive a substantial part of the extra Fair Trade price their incomes will not increase by a significant amount, meaning, consumption will not increase by much. As a result, the increase in aggregate demand will be insignificant and the boost to economic growth or development will be limited.