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Politics And Economics RWC > Economics > Flashcards

Economics Flashcards

1
Q

MPC decision on 3 Nov. 2022
What was happening simultaneously in gilt markets?
How was forward planning used?

A

+0.75% increase to 3%
Record high since GFC

Bank has started “quantitative tightening” - selling gilts to cause a decline in money supply growth

Minutes indicated rates wouldn’t rise to the 5.25% priced in by markets

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2
Q

Breakdown of UK aggregate demand

A

C. - 65
I. - 15
G. - 22
X-M. - -2

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3
Q

What % of poor countries are at or near debt distress?

Amount of world debt? Implications?

A

60% - countries unable to fully fulfill financial obligations

$300 trillion in 2021, record amount and up from $226 in 2020

Poorest will be worst hit. Less money to key industries and increasing interest rates increase repayments.

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4
Q

Why has Julie Hunter launched a lawsuit against against Amazon in the UK?
Any similar cases?

A

For anti-competitive practices. Alleges they have been featuring their own products despite better products being available.
Seeking £900m

European Comission investigating amazon 2x as well

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5
Q

How is Australia using its factor endowment to “challenge China”

A

Opening a new rare earth metal mine in Central Australia. Have strategic value and China have threatened restricting exports.

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6
Q

How does M&S’ 5-year plan (now aimed for 3-years) reflect changing economy?

A

Losing 67 “full-line” stores to lose space

50% of sales now come from online

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7
Q

How much of US inflation is driven by corporate profits?

A

“53%, historical highs.” Congresswoman Katie Porter

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8
Q

Why have we averaged 2% growth in 2010-2019 but no increase in disposable income

A

Growth has been driven by consumption, not investment and so productivity has been stagnant

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9
Q

When did income inequality start rising

A

1970s, until then an increasing number of wages went to labour but since then it has fallen. More goes to owners of capital / stocks.

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10
Q

Between 1979 and 2012, what do the “distributional national accounts” show.

A

Bottom 50% received 10% of growth while the richest 10% gained 40%

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11
Q

Why did binance pull out of a takeover of FTX?
How many withdrawals did FTX have to cover?

A

Liquidity issues “beyond our control or ability to to help”.

Has to cover $8B in withdrawal requests.

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12
Q

How many workers do Meta plan lay off? What are it’s priorities? (November)

A

11,000 (13% of workers)

Will focus on high growth tech (AI, advertising, metaverse etc. ) as revenue wasn’t as stable as expected during covid.

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13
Q

Why has Bangladesh made a $4.5B deal with the IMF?
How many countries have done it so far this year? (Nov 2022)

A

Struggling economy. High growth in recent years challenged by weakening demand for garment exports and high inflation.

3 including Bangladesh

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14
Q

How much does the Inter-American Development Bank invest per year in Latin America?

A

$14B

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15
Q

How much revenue did Yeezy bring in for Adidas?

Why have sportswear brands been struggling?

A

$1.5B (12% of revenue)

Lots of surplus stock

Increased competition addressing environmental concerns especially

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16
Q

Example of Indonesia’s factor endowment?

A

Contains 21m tonnes of nickel, 1/5 of world supply. Needed for electric car batteries.

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17
Q

How did the services industry contribute to Gross Value Added in 2021 to the UK economy?

A

Contributed $1.7T, 80% of the total.

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18
Q

How much less would a women from a working class background earn in a professional managerial role?

What about the general class pay gap for the same jobs?

A

£9450

£6718

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19
Q

What did Germany offer $170m for at COP?

A

To help countries recover from climate related disasters. The project needs $210m to start

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20
Q

Why are taxes as % of GDP at their highest in almost 4 decades

A

Slow growth and ageing population means more spending needed.
Does not mean better public services.

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21
Q

Public and private investment as % of GDP in 2022 vs other G7 countries?

A

Predicted 17% (keep updated) vs predicted 22-26%

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22
Q

Peak value of cryptocurrencies last year vs now (November)

A

$3trn vs &$830B

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23
Q

Predicted fall in disposable income Apr 2022-23

A

4.8%

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24
Q

How did the autumn statement split savings via tax rises vs spending

A

20% tax rises
80% spending

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25
Q

What is energy intensity of GDP and how has it changed in the US

A

The amount of energy needed per unit of GDP.

It has fallen, USA’s GDP up 29% from 2005 and its territorial emissions down 15%

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26
Q

How many countries have achieved energy decoupling and what is it

A

The separation of GDP from CO2 emissions.

Around 32 countries, mainly rich European economies and the US bit some South American too.

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27
Q

Losses incurred by Disney+ July-Sep

A

$1.5B

28
Q

How much tax did BP and Shell pay from 2015-2020

A

They paid “negative tax” they received more money from the government than tax paid apart from Shell in 2017.

29
Q

Worker remittances as % of GDP in Nepal

A

around 23%, much greater than FDI or overseas development aid

30
Q

What is tiered pricing, how is it used in Santa Fe

A

Having a certain price up to a certain quantity, and then paying progressively more. Used in Santa Fe for water: all families are provided with the essentials and then richer ones pay more for excesses i.e. washing the car or watering the lawn

31
Q

How energy efficient are Britain’s 30m

A

Some of the worst in Europe
1/3 were built before 1945

32
Q

Estimated damage done to Pakistan by the summer floods

A

$30bn

33
Q

What did the World Bank chief warn about (Dec)

A

Growing debt burdens on poorer countries (35% more than 2021), and a need to be more forgiving (especially China as the largest lender)

34
Q

What was the likelihood of several big price moves in markets in August 2007, according to Goldman’s models?

A

Each one should have been less likely than winning the UK lottery 21 times in a row.

35
Q

Who wrote the Theory of Moral Sentiments

A

Adam Smith, he sought to link ethics with our innate sympathy/ empathy with one another.

36
Q

How much did Microsoft agree to pay to merge with Activision-Blizzard in Jan 2022

A

$16b

37
Q

How many regulators worldwide have taken interest in Activision/Microsoft merger

A

16

38
Q

Since when and where has the biggest rise in inequality across developed countries been? (post-ww2)

A

In the US and UK, post-1980s

39
Q

How much of our imported food do we get from the EU

A

75%

40
Q

How does Adobe show a proposed takeover can cause problems for a firm?

A

Investors thought they were paying too much ($20B) for Figma and sent their stock price down.

41
Q

Up to date example of a joint venture (aviation)

A

Rolls-Royce and EasyJet powered a modern plane engine with green hydrogen. Helps both towards net-zero commitments

42
Q

House prices in Northern Ireland relative to pre-GFC

A

Still below pre-GFC peak

43
Q

How long are median house prices expected to fall in the UK

A

Until Autumn 2024 (OBR)

44
Q

How many branches will HSBC close from April 2024

A

114

45
Q

How has Brexit affected UK food bills, according to LSE

A

Added “£210” to the average bill. Non-tariff barriers like additional checks/ paperwork. Up to 88% of price rises being passed on, esp. for meats

46
Q

How did the British airline cap and trade scheme fail in 2021

A

Government gave away 4.4 million at the start of the year and the industry only used 3.4, essentially £240 million subsidy.

…due to depressed demand from COVID

47
Q

How has TotalEnergies responded to the increase in the Energy Profits Levy?

A

Cut 25% (£100m) of its planned investment

48
Q

What are the “Edinburgh Reforms”

A

“Biggest financial services shake-up in decades”, says the government. Will aim to cut red-tape, most likely repealing post-GFC regulations

49
Q

What did the WTO say about Trump’s steel tariffs?
How has the US responded

A

They broke WTO rules
Biden said he stood by them, to protect steel industry. Shows increasingly shaky governancee of global trade.

50
Q

Breakdown of recent telecom merger in Canada? How much do Candians pay for wireless broadband.

A

$20B merger makes the second biggest canadian provider. Originally blocked then overturned. They already pay the highest bills in the world.

51
Q

What did the head of the IMF predict about the world economy in 2023?

A

That one third of the world will fall into recession

52
Q

What has Sweden discovered in the North of its country

A

A large rare earth metal deposit, will take 10 years to bring to market

53
Q

First month that inflation in America fell since May 2020? (disinflation)

A

Dec 2022, fell by .1%

54
Q

Amount of domestic American subsidies for green industries

A

$465B

55
Q

Why is americas justice department suing Google

A

For illegally dominating the online advertising market

56
Q

How much does Adani spend on capital spending in India

A

7% of all spending by top 500 companies

57
Q

Shell profit 2022

A

$40B - record profit

58
Q

Indonesia’s GDP growth 2022,relative to other years

A

5.3%,most in 9 years

59
Q

Recent example of brain drain

A

IT workers in belarus - 20,000 of estimated 60,000 workers have left since the war.

60
Q

What’s happened to JetBlues $3.8b purchase of Spirit Airlines

A

Sued by American government - budget airline monopoly

61
Q

How much will the poorest countries have their debt costs increase by in 2023

A

+35%

62
Q

Country that pays more on debt service than exports/ primary income

A

Mozambique - debt worth 400% of GNI

63
Q

Industry with high MES, why is this the case?

A

Pharmaceuticals:
Bulk purchasing of raw materials
Economies of scope/ efficient use of manufacturing facilities
High costs of R+D - need high output to offset costs

64
Q

Estimated cost of bringing a drug to market in the US

A

$3bn

65
Q

When did UK wages start stagnating?
How much has this cost the average British worker?

A

2008 - cost around £11000 a year

66
Q

Country with lowest investment/ GDP in the G7

A

Britain

Politics And Economics RWC (4 decks)

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