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A Level Economics > Micro and Macro Effects/Reasons etc. > Flashcards

Micro and Macro Effects/Reasons etc. Flashcards

1
Q

Micro Effects of Market Structures

A
  • Allocative Efficiency
  • Productive Efficiency
  • X Efficiency
  • Anti-Competitive Strategies
  • Price Discrimination
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2
Q

Macro Effects of Market Structures

A
  • Dynamic Efficiency + LRAS
  • Jobs
  • Productive Efficiency + LRAS
  • Competitive Markets and Poverty Alleviation
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3
Q

Micro Effects of Trade Union

A
  • Wages and Employment
  • Worker Rights + Protection
  • Monopsony labour market outcomes
  • Cost to firms
  • Wage Discrimination
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4
Q

Macro Effects of Trade Union

A
  • Unemployment
  • Inflation
  • International Competitiveness, Trade + Current Account
  • FDI
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5
Q

Micro Effects of Subsidy

A
  • Price + Consumer Surplus
  • Quantity + Market Failure
  • Affordability + Equity
  • Producer Revenue + Inefficiency
  • Cost to Government
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6
Q

Macro Effects of Subsidy

A
  • Protect Domestic Producers + Workers
  • Inflation
  • International Competitiveness, Trade + Current Account
  • Government Finances
  • FDI
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7
Q

Micro Effects of Privatisation/Deregulation

A
  • Allocative Efficiency
  • Productive Efficiency
  • X Efficiency
  • Dynamic Efficiency
  • Stakeholder Impacts (e.g. cost-cutting in safety or loss of welfare for workers)
  • Market Failures (Private firms will care less about social costs and benefits than government)
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8
Q

Macro Effects of Privatisation/Deregulation

A
  • Productive + Dynamic Efficiency + LRAS
  • Employment/Unemployment
  • Infrastructure Building (Competitiveness + FDI)
  • Government Revenue from selling off firms
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9
Q

Macro Effects of Free Trade

A
  • Current Account
  • AD, Growth, Unemployment
  • Inflation
  • Living Standards + Poverty
  • Dynamic Efficiency, Technology Diffusion + LRAS
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10
Q

Micro Effects of Free Trade

A
  • Lower Prices, Consumer Surplus
  • Quantity + Choice
  • Competition (Static Efficiency)
  • Technology and Costs of Production
  • Economies of Scale
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11
Q

Macro Effects of Supply Side Policies

A
  • Growth
  • Unemployment
  • Inflation
  • Current Account
  • Government Finances
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12
Q

Micro Effects of Supply Side Policies

A
  • Productivity
  • Stakeholder Harm of Market Based Policies
  • Competition Benefits
  • Risk of Monopoly Power
  • Solve/Result in Market Failures
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13
Q

Macro Effects of Growth

A
  • Incomes, Living Standards, Poverty
  • Unemployment
  • Inflation
  • Current Account
  • Government Finances
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14
Q

Micro Effects of Growth

A
  • Market Failures (Environment)
  • Income Inequality
  • Individual Happiness (More to happiness than higher incomes e.g. Infrastructure, healthcare, education etc.)
  • Profits and Dynamic Efficiency
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15
Q

Macro Effects of FDI

A
  • Growth, Unemployment, Incomes, Living Standards + Poverty
  • Inflation
  • Balance of Payments
  • Technology Diffusion + LRAS
  • Government Finances
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16
Q

Micro Effects of FDI

A
  • Market Failures (Environment)
  • Welfare of Workers + Pay
  • Dynamic Efficiency (Costs, Productivity, Green Production)
  • Competition Distortion/Addition
17
Q

Micro Effects of Minimum Wage

A
  • Income Inequality, Equity
  • Higher Prices, Lower Consumer Surplus
  • Producer Revenue / Profit
  • Individual Impact of Job Losses
18
Q

Macro Effects of Minimum Wage

A
  • Unemployment
  • Inflation
  • Competitiveness + Trade
  • Government Finances
19
Q

Micro Effects of Unemployment

A
  • Social Costs (e.g. crime)
  • Pool of Workers
  • Individual Costs
  • Worsening of Market Failures (e.g. drugs, alcohol)
20
Q

Macro Effects of Unemployment

A
  • Lost Output
  • Government Finances (Loss of Tax Revenue, Spending on Benefits)
  • Hysteresis
  • Inflation (Phillips Curve)
  • Current Account
21
Q

Micro Effects of Nationalisation

A
  • Allocative Efficiency (Solve Market Failure)
  • Lower Prices, Higher Quantity + Choice
  • Greater Economies of Scale
  • Skills, Training + Productivity
22
Q

Macro Effects of Nationalisation

A
  • Government Finances
  • Employment
  • Inefficiency + Inflation
  • Dynamic Efficiency (LRAS)
23
Q

Micro Effects of Market Based Development Policies

A
  • Allocative Efficiency
  • Dynamic Efficiency
  • Market Failures
24
Q

Macro Effects of Market Based Development Policies

A
  • Growth, Incomes, Living Standards, Poverty
  • Jobs
  • Tax Revenue
  • Income Inequality
25
Q

Micro Reasons for Protectionism

A
  • Protect Workers (Higher living standards, Higher Wages)
  • Protect Against Dumping (Impact on Domestic Businesses and Jobs)
  • Protect Standards (Health and Safety, Environmental, Worker Rights)
26
Q

Macro Reasons for Protectionism

A
  • Infant Industries + Diversification (Economies of Scale)
  • Protect Against Unemployment
  • Tariff Revenue for Government
  • Solve Trade Deficit (Lower Import Expenditure)
27
Q

Micro Causes of a Current Account Deficit

A
  • Low Productivity
  • High Relative Minimum Wages
  • Strong Trade Unions
  • Resource Depletion
28
Q

Macro Causes of a Current Account Deficit

A
  • High Growth at Home (Leads to Increase in Imports)
  • Low Growth Abroad (Less Demand for our Exports)
  • Strong Exchange Rate
  • High Relative Inflation (Makes Exports less competitive)
  • Poor Investment (Technology and Capital outdated domestically, so costs higher)
  • Loss of Comparative Advantage (De-Industrialisation, Structural Unemployment)
29
Q

Micro Barriers to Development

A
  • Low Productivity (Low Incomes, Poverty Cycle, High Costs)
  • Poor Education, Health, Infrastructure (Detracts FDI, Reduced Competitiveness)
  • Volatile Commodity Prices
  • Resource Depletion
  • Power of MNCs
30
Q

Macro Barriers to Development

A
  • Protectionism Abroad (If country is export based)
  • Volatile Exchange Rate (Keeps FDI and Aid away)
  • Corrupt Governments
  • Low Savings + Investment
  • Unbalanced Growth (Overspecialisation, could lead to shock recession)
31
Q

Micro Influences on International Competitiveness

A
  • Productivity (Drives Labour Costs, Price Competitiveness of Exports and Ability to attract FDI)
  • Regulation (Higher Costs and Prices, Deters FDI)
  • Labour Market Flexibility (Keeps Prices and Costs Low, Attracts FDI)
  • Competition
  • Subsidies
  • Investment, R+D (Competitiveness), Banking Sector (Domestic Investment and FDI)
32
Q

Macro Influences on International Competitiveness

A
  • Tax Rates (Low Corporation Tax and VAT keeps Price Low and attracts FDI)
  • Relative Inflation
  • Exchange Rate
  • Infrastructure (Firms rely on transport infrastructure, so Lower Prices, attracts FDI)
  • Government Finances (Promotes Domestic Investment and FDI)
  • Protectionism (From foreign countries or us e.g. Tariffs on raw materials Increasing Prices)

A Level Economics (12 decks)

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