Knowledge organiser 2: economic 1: 1951-64

Question 1

Rab Butler

Answer 1

A prominent British Conservative Party politician, and he was effectively deputy Prime Minister to Eden and MacMillan, although he only held the official title for a brief period in 1962-63.

Question 2

Hugh Gaitskell

Answer 2

A British politician who was leader of the Labour Party and Leader of opposition from 1955 until his death in 1963.

Question 3

Walter Monckton

Answer 3

Edens Minister of Defence from 1955-56, and worked in the cabinet during the Suez Crisis, until he moved in October to the post of Paymaster General.

Question 4

Harold Macmillan

Answer 4

A British statesman and Conservative politician who was Prime Minister from 1957-63. Nicknamed ‘Supermac’, and was known for his pragmatism, and wit.

Question 5

Peter Thorneycroft

Answer 5

A British Conservative Party politician, who served as the Chancellor of the Exchequer between 1957-58

Question 6

Heathcoat Amory

Answer 6

Appointed after Thorneycroft resigned, and was the person that introduced the give-away budget

Question 7

Selwyn Lloyd

Answer 7

Friend of Macmillan, who was appointed after Amory

Question 8

Reginald Maudling

Answer 8

A politician who served as chancellor of the Exchequer and home secretary

Question 9

Corelli Barnett

Answer 9

An economic historian who wrote works on the UK’s post-war deindustrialisation

Question 10

Inflation

Answer 10

Is a rise in the general level of prices of goods and services in an economy over a period of time. It means that your pounds will buy less goods.

Question 11

Real wages

Answer 11

Wages that have been adjusted for inflation (price rises)

Question 12

Disposable Income

Answer 12

Money you have left over to spend on what you want (holidays, shopping, etc)

Question 13

Gross Domestic Product

Answer 13

Is a measure of the total output of the economy. It is usually measured over one year. It is calculated by adding together the total amount produced by all firms in the UK.

Question 14

Economic Growth

Answer 14

How a country is measured that year from using other similar countries or it previous GDP

Question 15

Boom

Answer 15

GDP increases a lot. Consumers demand is stronger and firms have healthy sales and make big profits

Question 16

Recession

Answer 16

A time of negative growth. GDP is falling, consumers demands fall, firms will struggle to make profits

Question 17

Laissez- Faire

Answer 17

Means “let it happen”. Argues that booms and bust is part of a natural cycle. When a burst happens, they argue that the government must cut back and spend less.

Question 18

Keynesianism

Answer 18

Believed that the government should not cut back but spend more. The government itself must become a consumer to compensate for the unemployed people who are no longer consuming.

Question 19

Balance of Payments deficit

Answer 19

The amount Britain exports (sells) is less than it imports (buys). It is essentially in debt. This is exactly the opposite of a balance of payment surplus.

Question 20

Austerity

Answer 20

The strict policies that the government imposes to control public debt

Question 21

Rationing

Answer 21

The controlled distribution if scarce recourses, goods and services

Question 22

Nationalism

Answer 22

An ideology that prioritizes the loyalty and devotion to the nation over other interest

Question 23

Derationing Day

Answer 23

The abolishment of food rationing and rationing books

Question 24

Stop Go Economics

Answer 24

refers to minor polices enacted in result of the economy (whether in boom or recession

Question 25

Butskellism

Answer 25

When the Labour and constative party had reached a consensus

Question 26

Me-tooism

Answer 26

Adopting policies similar or identical to those of a peer or competitor

Question 27

Consesus

Answer 27

Agreement in the judgment or opinion by a group as a whole

Question 28

Interventionism

Answer 28

The action of a government taking action to become involved in the problems of another country

Question 29

Deflating the Economy

Answer 29

increases taxation in order to stop inflation from happening

Question 30

Hire Purchase

Answer 30

An arrangement whereby a customer agrees to acquire an asset by paying an initial instalment and repaying the balance over a period of time

Question 31

Industrial relation

Answer 31

The relation between employer and employees, or trade union and the government

Question 32

Trade union Appeasement

Answer 32

The act of the government giving in to the specific demand the trade union wants in order to limit working days off

Question 33

pots and pans budget

Answer 33

The purchase tax on kitchen utensils

Question 34

premium bonds

Answer 34

Saving bonds that earn interest and are entered in a monthly prize draw, where the prize is given out by the government

Question 35

“Give- away budget”

Answer 35

A tax cut budget in 1959 to help start an economic boom before the election year

Question 36

“Never had it so good”

Answer 36

A quote Macmillan said to the British public due to the surplus in the economics under his government

Question 37

Income policies

Answer 37

An economy wide wage and price control, put in as a response to inflation

Question 38

Neddy

Answer 38

National economic development council

Question 39

Nicky

Answer 39

National income commission.

Question 40

Pay pause

Answer 40

The abrupt paused the wages of some public sectors, like teachers and nurses, to increase productivity.

Question 41

Dash for growth

Answer 41

A budget of tax cuts of nearly £300 million and other stimulants to economic growth. “Expansion without inflation”.

Question 42

Resale price maintenance

Answer 42

An agreement between supplier and a retailer that prevents the retailer from setting its own prices, eking the prices artificially high.

Question 43

“Economics with matchsticks”

Answer 43

A quote made by Harold Wilson cuttingly dismissing the Tory Prime Minister Alec Douglas- Home’s admission that he made sense of “economics with matchsticks.”

Question 44

13 years wasted

Answer 44

The charge of “13 wasted year” made by Labour against the Conservative Party had been in power for 13 years (1951-64), and for the lack of what has been done in the time.

Question 45

Working days lost

Answer 45

The total number of days that employees are absent from work due to illness or injury.

Question 46

Stagflation

Answer 46

An economic condition where high inflation, high unemployment, and stagnant economic growth occur all at the same time.

Question 47

Consumer Durables

Answer 47

Manufactured items, typically cars or household appliances, that are expected to have a relatively long useful life after purchase.