Macro Flashcards by Emma Gandy

What country had the highest GDP growth rate in 2022 and why?

Guyana, due to oil

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What country had the lowest GDP growth rate in 2022 and why?

Ukraine - war (external shocks), -35%

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What country has the highest unemployment rate and what is their rate?

South Africa 29%

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What country has the lowest unemployment rate and what is their rate?

Qatar 0.3%

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Who has the largest current account deficit and what is it?

USA, over $200bn

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What percentage did house prices decrease by in March

3.9% - fastest since 2009 after financial crash

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What did Economics Observatory research show about Brexit and UK Investment?

Was 10% lower that it would have been had Brexit not occurred (2022)

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How has Brexit impacted economic growth statistics

UK only G7 economy that hasn’t returned to pre pandemic size

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Lowest UK interest rate VS highest UK interest rate in past 20 years

Lowest 0.1% 2020, highest 5.75% 2007

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How much did the BofE increase QE from 2009 to 2020?

£695bn

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What was the lowest UK budget deficit in the past 10 years and why?

2% in 2018 due to austerity

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Highest UK budget deficit in past 10 yrs and why

15% in 2021 due to COVID

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What % of global GDP is accounted for by trade

52%

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UK trends in migration before and after Brexit

Before mostly EU citizens, but now mostly non-EU citizens especially after lockdowns ended

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Name an example of increased globalisation

African free trade zone promotes free trade

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Name an example of decreased globalisation

Brexit

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Name 3 goods the UK specialises in

Cars, gold, gas turbines

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Name a country specialising in manufactured goods

China

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Name 2 countries specialising in primary sector goods and what they specialise in

Zambia (copper) , Ivory Coast (cocoa beans)

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Name 2 examples of a shift in the pattern pf trade

UK deindustrialised and shift to spservices

China/India switch to manufactured

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Name an example of a Free Trade Area

ASEAN (Association of Southeast Asian Nations)

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Name an example of a customs union

SACU - Southern African Customs union

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Name an example of a monetary union

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Name an example of a common market

MERCOSUR in South America

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Name an example of a WTO dispute

US steel tariffs imposed on China and Mexico

Name a country with high rate of absolute poverty and the rate

South Sudan 80%

Name a country that has 0% absolute poverty

Iceland or Germany

Name a country that has had a rapid increase in poverty and say why

Ukraine - war

Name a country that has seen a rapid decrease in poverty, saying how many people and the time period

China, 850 million less people in absolute poverty in 40 years

Name a country with a high gini coefficient and the coefficient

South Africa 0.63

Name a country with a low gini coefficient and the coefficient

Iceland 0.24

Name an example of inequality between two countries nearby

Haiti and Dominican Republic

Name an example of a country with high inequality within it

South Africa

Name a country with a high HDI score and say its score

Iceland. 0.959

Name a country with a low HDI score and say its score

Niger, 0.39

Name a country with high gdp low hdi

Equitorial guinea

Name a country with relatively low gdp, high hdi

Marshall islands

Name a country with a primary product dependency and its consequences

Venezuala oil dependence, means high external debt and high inflation

What was Venezuala’s inflation at the end of 2021

686%

Name a country that has a low savings ratio and say the ratio

Kenya 10% of GDP

Name a landlocked country that struggles to trade and the countries that border it

Eswatini exports lots to South Africa and Mozambique who border it

Name an example of capital flight in a country with statistics

Iran - $6bn left country in 2020-21 due to political instability fears

Name an example of a country with a high fertility rate with statistic

Niger, 6.8 children per adult woman

Name a country with aging population with statistics

Japan, 30% over 65

What is Venezuala’s net migration?

3mn leaving

What is the US’ net immigration?

4.7mn coming in

what is the USA’s external debt

over 30 trillion

Name a country with low access to bank accounts, and what % of their population has one

Morocco, under 30%

Name a country with poor infrastructure and why it has this

Haiti, made worse by natural disasters

What is life expectancy in Chad and why is it like this?

53 years, poor healthcare and disease outbreaks are common

Name 2 countries with poor protection of property rights

Venezuala and Haiti

Name a country that developed through micro finance and how this happened

Bangladesh - Grameen bank made small long term loans to poor

Name a company that was fined for tax avoidance, and summarise the situation and the fine amount

Apple - fined 13mn Euro - moved profit to Ireland to take advantage of tax benefit

Name the country with the highest inflation in the world, the rate, and the reason

Zimbabwe, 285%, lots of economic shocks and gov increased money supply

Name a country that had deflation in 2021 and why

Samoa due to stagnant worker wages

What was the UK’s current account deficit in Q4 2022?

£2.48bn deficit

What was the Uk’s GDP per hour worked in 2021?

68 dollars

What was the US’ GDP per hour worked in 2021, and what was Japan’s? and why

US - 85 - lots of investment and research Japan - 45 - shrinkinh population

Name a country with a free floating ER system

Name a country with a fixed/pegged exchange rate and why they do this

Saudi Arabia - rely on oil, so having pegged cirrency reduces risk as oil is priced in USD

country with a managed float ER and how they achieve this

China - RMB stays within 2% of USD - buying and selling currency

Where did singapore place on the GCI 2019 and why?

1st because of its open economy and skilled workforce

Name an example of tariffs being imposed

In Mar 2023 US imposed a 200% tariff on Aluminum from Russia

Name an example of a trade war and say what happened

US-China - Trump imposed tariffs and China retaliated, they have been kept in place

Name 2 examples of domestic subsidies for producers in the UK

Wage subsidy for furloughed workers during pandemic Subsidies for construction companies to build affordable housing - Affordable Homes Programme

Name an example of a quota in the UK

Quota on imports of certain steel products to protect domestic industry

Name an example of a non-tariff barrier

UK bans chlorinated chicken from US

Name a country that developed through trade liberalisation

China

Name 2 country that benefitted from FDI and give a specific example of how much they received

India - top 10 recipients in 2019 - received nearly $50billion Cambodia - FDI was 12% of GDP in 2018

Name a country that developed through education

Singapore as they had no natural resources

Name a country that developed through privatisation and when

India , 1991 when it reformed economically through the IMF

Name a country that developed through industrialisations

UK or china

Name a country that developed through tourism

Maldives

Name a country that became develop through primary industry

Saudi Arabia oil exports

Name a country that developing using a managed float ER

India

Name an example of a country that uses a buffer stock and who operates it

India, food corporation of india, buffer stock of grains

Name an example of joint ventures

China-Africa development fund, ford spent $1billion on SA car plant

Name an example of a company using tax avoidance and being caught

Apple fined €13mn as they moved profit to Ireland to take advantage of tax benefits

Compare a MNCs value to a country’s GDP

Apple 2.5tn vs Vietnam 370bn USD

Name an example of asymmetric information in the financial sector

PPI mis-selling as seller witheld information

Name an example of externalities in the financial sector

Lehman brothers’ decision to take on lots of risky debt caused global recession

Name an example of moral hazard in the financial sector

Lehman brothers - 2008 - took risks as they thought gov would bail them out

Name 2 example of speculation and market bubbles in the financial sector

Housing bubble 2009 - burst and US homes lost 1/3 of their value on average Gold commodity bubble in 1970s prices rose massively

Name an example of market rigging in the financial sector

Barclays and LIBOR - Barclays underreported their bank interest rate to make the bank look stronger

Name a country that has: a. A progressive tax system c. A proportional tax system

a. UK c. Russia

Name a country with high tax rates that illustrates the Laffer curve

when France announced higher income tax rates of over 70%, some French workers threatened to move abroad and take advantage of lower income tax rates.

Name a country with low corporate tax, and say how this affects FDI

Ireland - 2nd highest inflows in Q3 2022, and low corp tax