Economics

Question 1

Who did Keynes influence?

Answer 1

He was part of Lloyd George’s think tank

Question 2

What does Keynes admit about economics?

Answer 2

Economics is complicated but should not stop governments intervention

Question 3

What does Keynes believe government should do regarding economics?

Answer 3

That it is the moral duty of government to ensure steady growth
Unemployment is a moral evil

Question 4

What does Keynes admit about capitalism?

Answer 4

That it is the best system however needs help

Question 5

Fiscal policy

Answer 5

Accepts borrowing
Multiplier effect
Smoothing out the bumps in the road

Question 6

What does Keynes believe about government spending?

Answer 6

“Expenditure creates its own income” Keynes

Question 7

When was the busketalism?

Answer 7

Post war - 70’s
Focus on unemployment
Links to beveridge

Question 8

Why is Keynes rejected in the 70’s?

Answer 8

Stagflation under Callahan

Rejects Phillips curve

Question 9

What idea takes over in the late 70’s?

Answer 9

Friedman- Chicago school

Question 10

Does Keynes return?

Answer 10

Yes in recent years. 
Part nationalisation of banks 
Big Govt spending HS2
Increase in borrowing 
Quantitive easing 
Low interest rates

Question 11

What does Keynes say to do in times of recession?

Answer 11

Cut tax
Borrow more
Spend more

Question 12

What does monetarism focus on?

Answer 12

Inflation

Question 13

Why is unemployment not the key goal in monetarism?

Answer 13

Workers won’t demand pay rises so won’t price themselves out of the market

Question 14

What theory did Friedman use to what causes inflation?

Answer 14

Velocity of circulation

Question 15

What is the solution to slow down the movement of money?

Answer 15

Raise interest rates

Question 16

Who adopted monetarism?

Answer 16

New right

Regan and Thatcher

Question 17

Is monetarism popular with the voter?

Answer 17

No, voters prefer a focus on unemployment

Question 18

When did Britain try to join the EU?

Answer 18

In the 60’s

Under Wilson and Heath

Question 19

Who opposed the EU in the 60’s?

Answer 19

Enoch Powell

Gaitskell (labour) “End of 1000 years of history”

Question 20

When did we join the EU?

Answer 20

1973 Heath

Question 21

Did we get a good deal to begin?

Answer 21

No, the UK made a large contribution but was one of the poorest members at the time

Question 22

What are some of the opposition views to the EU?

Answer 22

Parliamentary sovereignty
Increases unemployment
Loss of British values

Question 23

Points for first referendum?

Answer 23

Called by Wilson to unite party
Tory’s and Thatcher remain
Remain win by 67%

Question 24

Thatcher quote on EU?

Answer 24

“A European super-state exercising a new dominance from Brussels”

Question 25

What was Thatcher a key driver of?

Answer 25

The Single European act 1986

Question 26

What happens under the major years regarding EU?

Answer 26

Britain opts out of the Euro | Euroskeptisism rises in the media

Question 27

What happened in the Blair years regarding the EU?

Answer 27

Blair considered the euro- Brown blocked | Spoke of a tragedy for Britain by politicians failing to appreciate European integration

Question 28

What are the main provisions of the single market?

Answer 28

``` No protectionism inside No border capitals Free movement of people Mutual recognition of qualifications Equality of taxes ```

Question 29

Fact for free movement of people?

Answer 29

55,000 EU citizens working in the NHS

Question 30

Disadvantages of Single market?

Answer 30

Job losses Wage reduction Skills drain

Question 31

Advantages of single market?

Answer 31

Move of capital | Movement of people and skills

Question 32

Example for job losses?

Answer 32

UK dairy farmers come under pressure from dairy farmers in Romania

Question 33

When was the Euro launched?

Answer 33

2002

Question 34

Advantages of joining the Euro?

Answer 34

``` Eliminates the exchange rate risk Price transparency- better comparison Reduced transactional cost Greater mobility for workforce Single monetary policy ```

Question 35

Disadvantages of the Euro?

Answer 35

Loss of monetary policy- unable to influence AD levels Differing Economies- UK is very sensitive to interest rate policy Recession

Question 36

Who country has been bailed out?

Answer 36

Greece | France to Greece nearly 9 billion Euros

Question 37

What approach did Thatcher have towards debt?

Answer 37

"Housewife approach"

Question 38

What was Gordon browns nickname?

Answer 38

Prudence brown

Question 39

Statistics for the U.K. And debt?

Answer 39

In 2000 the average person owed 160% of their household income Total private debt- £1.6 trillion

Question 40

Fact to show the increase in private debt?

Answer 40

Average person in the U.K. owes appro £54,000 this was £29,000 10 years ago

Question 41

How was private debt allowed to increase?

Answer 41

``` Loosen regulation of banks under Thatcher Growth of home ownership Increased forms of borrowing E.g.- credit cards and short term loans Embourgiesement ```

Question 42

We have a free market in the U.K.?

Answer 42

Thatcherism- Education and privatisations Blair and 3rd way- using free market to provide high quality public services City of London UK post brexit

Question 43

We have regulated market in the U.K.?

Answer 43

EU membership Utilities and housing market Response to 2008 Minimum wage

Question 44

Parties do follow the same economics policy?

Answer 44

Privatisations- Blair and Thatcher Supply side economics- Blair and Thatcher Response to 2008- Neo Keynesianism

Question 45

How much were the banks bailed out post 2008?

Answer 45

124 billion

Question 46

What policies showed neo-Keynesianism?

Answer 46

Labour tax cuts- 2008 and 2009 tax acts saw large temporary cuts to the majority of households All 2 parties support HS2- multiplier effect

Question 47

Which supply side economics did Blair do?

Answer 47

Education reforms | Harsh on trade unions

Question 48

How has May shown supply side?

Answer 48

T levels | Grammar schools

Question 49

How has corbyn shown supply side?

Answer 49

Small business tax cut | Free tuition fees

Question 50

Parties disagree on economic policy?

Answer 50

Taxation Welfare spending Intervention in free markets

Question 51

How do Labour and Tory disagree on utilities?

Answer 51

Labour- nationalise energy industries | Conservatives- make it easier to compare tariffs

Question 52

How to labour and Tory disagree on employment?

Answer 52

Tories have done nothing to stop 0 hour contracts | Corbyn pledged to end them

Question 53

The UK does have a free market?

Answer 53

Thatcherism- free market in education Blair and 3rd way The city of London

Question 54

Describe the city of London?

Answer 54

Big Bang started by Thatcher- followed by brown Cut no. Regulators to reduce power of watchdogs Needed to attract banks to London in a globalised world

Question 55

What did the 3rd way implant?

Answer 55

Compulsory competitive tendering

Question 56

We have a regulated market in the U.K.?

Answer 56

EU membership Post 2008 Minimum wage

Question 57

Regulation on banks post 28?

Answer 57

Limits to bankers bonuses Bank levy- an annual tax on balance sheets Financial services bill- a ring fence if a if a bank fails

Question 58

What is an open economy?

Answer 58

Free movement of goods and services moving in an out of the country Competes with countries across the globalised world Immigration and emigration of workers More choice of products for consumers

Question 59

We do have an Open economy in the U.K.?

Answer 59

EU membership Financial interconnectedness Foreign owned companies MNC's

Question 60

The UK has achieved a low inflation, low unemployment economy?

Answer 60

``` Tony Blair Neo-Keynes post 2008 Demand side Supply side Open economy ```