LC Econ Economic Aim Word Scramble
|
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
| Question | Answer |
| The economic aims of the government | Achieve Full Employment. Control price inflation. Achieve moderate economic growth. Boost exports. Control government finances. Broaden the tax base. Promote balanced regional development. Improve infrastructure. Improve state services. |
| Privatisation | This is the sale of a state owned company to private owners. |
| Nationalisation | The takeover of privately owned assets by the government/exchequer so as to increase public control in that industry. |
| The advantages of privatisation | Improved quality / choice of services. More competitive prices. Continuity of supply. Employment opportunities. More rewards/Incentives for innovation. Revenue from sale /reduce borrowing. Shedding of loss making companies |
| The disadvantages of privatisation | Loss of non-profit making services. Changes to working conditions. Loss of jobs. Loss of a state resource. Costs of the Sale. Foreign ownership |
| Advantages of Nationalisation | Stability to economy. Availability of credit. Rationalisation of banking services. Employment / consumer protection. Development of ethical banking practices. Continued provision of banking services to the community |
| Private Costs | Costs to the individual/company as a result of decisions they make |
| Social Costs | All the costs of production of the output of a particular good or service. We include the third party (external) costs arising from the decision (to society in general) |
| A chemical factory emits wastage as a by-product into nearby rivers and into the atmosphere. This is an example of.... | a social cost |
| Economic Growth | An increase in output per person in the economy. |
| Full employment | A situation in which jobs are available for all those willing to work at existing wage levels. |
| Laissez-faire | The economic doctrine that the state should not involve itself in economic matters. |
| Merit wants | Essential goods and services, such as health, education and housing. |
| Public Private Partnerships (PPPs) | Partnerships between public sector organisations and private sector investors and businesses for the purposes of designing planning, planning, financing, constructing and/or operating infrasturcture projects. |
| Welfare state | A state where the benefits of economic growth are distributed fairly. |
| Social Policy | Government policy in relation to the provision of essential goods and services to all citizens regardless of their ability to pay. |
| Equilibrium of Balance of Payments | A situation where a country's exports are roughly equal to its imports. |
| Structural deficits refer to | Deficits that are ongoing and not caused by any short term macroeconomic fluctuation. |
| Automatic stabilisers | An institutional feature of an economy that dampens its macroeconomic fluctuations, e.g., an income tax, which acts like a tax increase in a boom and a tax cut in a recession. |
| General government deficit | If a government spends (locally and nationally) more than it gets in income in any one year. |
| Possible conflicts between government economic objectives | full employment vs B of P/control of inflation/control of gov spending ■ Economic growth vs just social policy ■ Control of gov finances vs full employment/provision of infrastructure / Economic growth ■Balanced regional dev vs maintain state services |
| What policies can the government enforce to achieve just social policy? | Fiscal: implement a progressive income tax policy, reduce VAT on essential items and increase spending on social welfare |
| Discuss economic policies which the Irish government might pursue in order to reduce the level of unemployment. | ↓VAT (↑ spending ↑'s demand ↑'s demand for labour) ■ Subsidise labour employed ( ↓ rate of PRSI on additional labour ↓ cost of labour ↑ hiring) ■ Infrastructural dev (Funding capital improvements ↑ employment in construction) ■ Invest in edu-Training. |
| Balanced Regional Development | Government identifies and targets regions which are disadvantage or economically depressed and then implements policies which positively discriminate in favour of these regions. |
| Outline policies which the government could implement to promote regional development. | Decentralisation of state bodies ■ Grants/taxation ■ Invest in infrastructure ■ upgrade power supplies ■ upgrade 3rd level edu/training ■ improve access to/from region ■ Easing of planning restrictions ■ provide leadership programmes. |
| The Irish Government is considering the introduction of water charges for households. Outline the possible economic arguments in favour of the introduction of water charges for households in Ireland. | Reduced consumption/discourage waste ■ ↑ revenue for service provider ■ Improve water quality ■ Encourage investment in alternative technologies ■ Impossible to evade ■ help reduce need for direct taxes. |
| Policies used by the government | Fiscal ■ Monetary ■ Exchange rate ■ Direct intervention ■ Deregulation ■ Price controls / limit wage increases (collective bargaining) ■ Economic planning. |
| Why create full employment? | ↑ income for government ■ ↓ in expenditure ■ less social cost ■ ↑ spending in economy. |
| Why control inflation? | stabilise cost of living ■ Prevent wage increases ■ Keep Irish industry competitive. |
| How can the government control inflation? | Fiscal: ↑ tax to reduce demand ■ Monetary: ↑ interest rates to ↓ demand for loans ■ Price and incomes: impose wage freezes and impose price control orders. |
| How can the government achieve equilibrium of balance of trade? | Fiscal: ↑ tax to lower to ↓ income (this ↓'s demand for imports) ■ Monetary: ↑ interest rates on loans (less money to spend on imports) ■ Exchange rate: devalue currency (cheaper exports and more expensive imports) |
| Why achieve equilibrium in Ireland's Balance of Trade? | Ideally, gov aims to achieve imports = exports (at least). If imports > exports then the country is living beyond its means (buying to many foreign goods). If exports > imports this is a good sign but inflation could happen. |
| Why is it important for the government to have control of its finances? | To ↓ national debt ■ ↓ cost of servicing debt ■ make better use of resources ■ ↓ taxes ■ use surplus money to provide better services. |
| How can the government control its finances? | Fiscal: decrease expenditure and government borrowing. |
| Why should the government provide / improve an adequate national infrastructure? | To ensure a high standard of living, generate economic growth and attract foreign direct investors. |
| How can the government improve infrastructure? | Through the development of road infrastructure ■ provision of public transport ■ development of airports and seaports ■ significant increase in the quality of telecommuncations infrastructure. |
| Why would the government want to achieve sustainable economic growth? | Economic growth is aimed at increasing the average income per head of the population (Increased standard of living) |
| Outline policies that the Irish Government could implement to achieve sustainable economic growth. | By providing an economic infrastructure for private industry to survive/flourish ■ Fiscal: low corporate tax ■ monetary: low rate of interest on credit ■ ↓ the minimum wage ■ ↓ bureaucracy ■ Grants/financing training schemes from public funds. |
| *Economic growth | when the average consumer income per head of population increases without any fundamental change to the structure of society. |
| Positive economic consequence of economic growth. | ↑ employment ■ improved government finances ■ effect on balance of payments ■ improved standard of living ■ effects on migration ■ investment opportunities. |
| Negative economic consequences of economic growth. | Inflationary pressures ■ labour shortages ■ Demand for wage increases ■ increased demand for imports ■pressure in the housing market ■ pressure on state infrastructure ■ increased immigration/displacement of population. |
| Why does the government want to control price inflation and have price stability? | problems with inflation: loss of competitiveness (expensive exports / might be cheaper to import) ■ Difficult to attract FDI ■ workers will demand increased wages ■ affects those on lower incomes disproportionally. |
Created by:
MrFromholz
Popular Economics sets