ECO FACTS/STATS

Question 1

How much do global financial integrity research group estimate is lost through transfer pricing?

Answer 1

$100bn

Question 2

How is transfer pricing regulated? and eval

Answer 2

Arms length principle-direct control that controls the min price daughter companies can charge for their goods (as if they were selling to a 3rd party)

eval:TNCs are footloose, so gov are scared to regulate as they would move to country where transfer pricing is possible. (lose inv,tax,jobs)

Question 3

UK GROWTH 2021 to 2022

Answer 3

7.4%

Question 4

Forecasted growth 2022 and 2023

Answer 4

3.8% (2022) 1.8% (2023)

Question 5

GDP per capita 2022

Answer 5

£31,400

Question 6

Total GDP 2022

Answer 6

£2.4tn

Question 7

Services as a proportion of GDP

Answer 7

79%

Question 8

Manufacturing as a % of GDP

Answer 8

14%

Question 9

Unemployment rate 2022

Answer 9

3.8%

Question 10

Wage Growth 2022

Answer 10

5.4%-low unemployment

Question 11

Job vacancies and consumer confidence 2022

Answer 11

Job vacancies-record high

Confidence-high e.g covid restrictions removed but falling sharply following cost of living crisis

Question 12

CAD AS A % of GDP

Answer 12

3.7% Quite large

Question 13

UK productivity and investment in comparison to G7

Answer 13

Poor-20% less than other G7 countries

Question 14

Budget deficit 2021-2022

Answer 14

5.6% of GDP 2021-2022, a fall from last year

Question 15

National debt as % of GDP

Answer 15

96% of GDP

Question 16

Taxes changes 2022

Answer 16

National insurance+1.25%

Corp tax to rise from 19% to 25% in 2023

Question 17

Gino coefficient

Answer 17

0.363-inequality increased

Question 18

Savings ratio

Answer 18

6.5%-a fall, could be for low interest rates.

Use in monetary policy where low interest increase MPC

Question 19

QE 2021

Answer 19

£450bn pumped into economy, half of QE total

Question 20

Hysteresis effect

Answer 20

Long periods of unemployment are likely to harm future supply e.g demotivated, lose skills, change attitudes, depression etc