UK

Question 1

What effect did the Brexit vote have on the British economy?

Answer 1

Brexit vote
- decreased consumer confidence
higher exports and lower imports didn’t happen as there was only a slight improvement in balance of payments (difference of money flowing into and out of the country) due to uncertainty

Question 2

What is the current inflation rate in the UK and what did it rise from?

Answer 2

Rose from 0.4%-0.7%

Question 3

What costs have increased significantly due to the 0.3% inflation?

Answer 3

Cost of fuel, transport and clothes

Question 4

How could inflation the UK increase even more due to the complete lifting of lockdown?

Answer 4

Inflation could increase dramatically due to the consumer spending increasing after lockdown restrictions have been lifted and pandemic savings. (£200 billion saved)

Question 5

How many people life in relative poverty in the UK?

Answer 5

14 million people

Question 6

What are on the axis of the Lorenz curve?

Answer 6

y-axis: % of cumulative income, x-axis: distribution of households (20%-20%-20%)

Question 7

What is the UK’s Gini Coefficient?

Answer 7

0.35 (fairly unequal distribution of income)

Question 8

What is the UK’s credit rating?

Answer 8

S&P AA

Question 9

What goods does the UK import?

Answer 9

cars, white goods, telephones

Question 10

What kind of goods does the UK export?

Answer 10

Medicines, aircraft parts

Question 11

What is the UK’s unemployment rate?

Answer 11

4.9% (April 2021)

Question 12

Name 3 things that the UK government did to boost consumption after lockdown

Answer 12

• Increase contactless from £45-£100
• lowest ever interest rates 0.1%
• Increase on universal credit by £20

Question 13

What does the UK-EU Trade Cooperation Agreement state about goods?

Answer 13

• no taxes on goods or quotas
• new restrictions on certain UK animal food products
• UK can agree their own individual trade agreements

Question 14

What does the UK-EU Trade Cooperation Agreement state about services?

Answer 14

• UK businesses will need to comply with the regulations in each individual country ( increase in costs)
• 80% of of UK economy is service lead

Question 15

State 3 negatives to the UK-EU agreement

Answer 15

• Freedom of movement will be stopped
• around 200 additional customs forms = £7bn in xtra costs.
• Predicted 4% shrink in economy in the future according to OBR