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MacroEconomics 4 random Stats

Benjamin Enye Economics English 120 cards

Cards in this deck (120)

  1. 1The first indicator of development is access to clean water. What is the percentage of people in the UK that have access to clean water100% of the people in the UK have access to clean water
  2. 2The first indicator of development is access to clean water. What is the percentage of people that have access to clean water in IndiaIn India, 94% of people have access to clean water
  3. 3The second indicator of development is number of mobile phones. How many mobile phones are there per 100 people in the UKIn the UK, there are 122 mobile phones, per 100 people.
  4. 4The third indicator of development is access to Internet. What percentage of people in the UK have access to the Internet95% of people in the UK have access to the internet.
  5. 5The third indicator of development is access to Internet. What percentage of people in India have access to the InternetIn India, 30% of people have access to the internet
  6. 6The 4th indicator of development is energy consumption. How much oil does the average person in the UK use compared to India.In the UK, the average person uses 2764 Kg of oil per year. India, on the other hand, is just 673 Kg of oil per person
  7. 7The 5th indicator of development is the proportion of people in agricultural work. What is the percentage of people that work in the agricultural sector in the UKIn the UK, just 1% of the population work in the agricultural sector.
  8. 8What are the three measures of development that are used widely1. Human Development Index (HDI)
    2. Income Inequality Adjusted Human Devolpment Index (IHDI)
    3. Multidimensional Poverty Index (MPI)
  9. 9What is Gross National IncomeGross National income is Gross domestic Product + net income from abroad
  10. 10What is Real GNI per capita in the UKReal GNI in the UK is around $44000 PPP
  11. 11What three things does the Human devlopment index measureHDI measures
    1.Education (average years spent in school)
    2. Health (Life expectancy at birth)
    3.Living standards (Real GNI per capita)
  12. 12The UK has a very high development. What is its HDI valueThe UK has a HDI value of 0.91
  13. 13What is the 1st advantage of HDIThe 1st advantage of HDI is that it is Holistic in that it looks at the whole of devolpment supposed to just one indicator suc as clean water. As a result, HDI can be considered more reliable
  14. 14What is the 1st disadvantage of HDIThe 1st disadvantage of HDI is that it steal leaves out a lot of indicators making it less reliable
  15. 15How much FDI did India receive in 2015In 2015, India received $31Bn in FDI, more than any contry in the World
  16. 16What two factors encourage FDIThe two factors that encourage FDI are
    1. Low corporation tax
    2. Low Wage Costs
  17. 17Provide an example of government spending in IndiaIn india, the government are investing in highspeeed bullet trains
  18. 18The 3rd constraint on growth and development is health. How many people in Kenya are currently suffering from a HIV infectionIn Kenya, over 1.6 million people have a HIV infection
  19. 19What are the two main reasons so many people have HIV in KenyaThe two main reasons people have HIV in Kenya are
    1. Poor Healthcare
    2. Poor Sex Education (don't know the use of condoms)
  20. 20One way of dealing with poor health is AID (donations). How much money did Kenya receive in AID from USAIn 2016, Kenya received over $650M in AID from the US
  21. 21The 4th constraint on growth and development is population growth. How much has Tanzania's population increased in the past 20 yearsIn the past 20 years, Tanzania's population has doubled from 30 million to 60 million
  22. 22What is the percentage of women that work in IranIn Iran, only 17% of women work
  23. 23Saving gaps is the 5th constraint to growth and development. What is a savings gapSavings gaps is a gap between a banks savings and the money firms went to borrowv from the bank
  24. 24What are the two main reasons for low savingsThe two main reasons for low savings are
    1. Low incomes
    2. Low access to banks, as they're far away or considered unsecure
  25. 25What model links saving gaps to low economic growthThe Harrod Domar Model links saving gaps to low economic growth
  26. 26Why are subsidies not the best in promoting developmentFirstly, subsidies have a large opportunity cost
    Secondly, subsidies may encourage inefficiency in firms as they're made more competitive without becoming more productive
  27. 27Corruption is the 7th constaint to growth and development. In the past 10 years, how much money has gone missing from the Venezuelan government fundsIn the past 10 years, $300bn has gone missing from the Venezuelan government funds
  28. 28Despite vast reserves of oil and gold, how much of benin's population live in extreme poverty40% of Benin's population live in extreme poverty, having to survive on less than $1.90 a day
  29. 29How many hospital beds are available for every 2000 people in BeninIn Benin, there is one available hospital bed for every 2000 people
  30. 30Due to Malnutrition in Benin, how many children under 5 die every yearDue to malnutrition in Benin, 32,000 Beninese children don't make it pass the age of 5
  31. 31What is Benins Marginal propensity to saveBenin's marginal propensity to save is 0.025
  32. 32What are the 3 unrealistic assumptions of the theory of comparative advantage (if countries specialise in what they have a comparative advantage in, World Output will increase)The three unrealistic assumptions of the theory of comparative advantage is
    1. Average production costs are constant
    2. No trade barriers
    3. No transport costs
  33. 33What is the 1st limitation of the theory of comparative advanatge which corresponds to the 1st assumptionThe 1st limitation of the theory of comparative advantage is increased specialisation might result in rising average costs caused by diseconomies of scale
  34. 34in 1950, the global child mortality rate was 23%. How has globalisation allowed this figure to decrease to just 4.5%In 1950, Global child mortality rate was 23%. But now that developing countries are able to import goods such as medicine from developed countries, the percentage has fallen to 4.5%
  35. 35How many member countries are there in the World Bank and IMF and where are they locatedThe World Bank and IMF have 189 member countries and are both located in Wasington DC
  36. 36How much money did the World Bank lend in delopment loans in 2016In 2016, the World Bank lent $61bn in development loans
  37. 37IMF occasionally provide bailout to economies. Provide details of the example of GreeceIn 2010, the IMF offered Greece a $147bn bailout, which helped economies such as South Korea who sale $2bn of exports to Greece
  38. 38How did Uber raise $8.4bn in 2017In 2017, the Uber CEO sold 17.5% of Uber's equity
  39. 39What percentage of people in Benin live in extreme poverty40% of people in Benin live in extreme poverty, earning less than $1.90 a day
  40. 40Provide a fact on the poor healthcare system in BeninIn Benines' hospitals there are only 1 bed for every 2000 people
  41. 41What is the 1st assumption/limitation of the theory of comparative advantageThe 1st asumption is that the average cost of production is constant, however in reality specialisation may result in rising average costs due to diseconomies of scale
  42. 42What is the 2nd assumption/limitation of the theory of comparative advantageThe 2nd assumption of theory of comparative advantage is there are no trade barriers, however in reality there are tariffs.
  43. 43What is the third assumption/limitation of the theory of comparative advantageThe third assumption of the theory of comparative advantge is there are no transport costs, however real-world transport costs might distort comparative advantage
  44. 44What is the 1st advantage of specialisation and tradeThe 1st advantage of specialisation and trade is it leads to higher world output and therefore higher living standards. Like when the UK specialised in producing paracetomol tablets and china specialised in producing steel.
  45. 45What is the 1st disadvantage of specialisation and tradeThe 1st disadvantage of specialisation and trade is that it based on unrealistic assumptions
  46. 46What is the 2nd advantage of specialisation and tradeThe 2nd advantage of specialisation and trade is that it allows countries to sell to international markets and benefit from economies of scale. E.g in the early 70s Saudi Arabia's real GDP was increasing by 20% a year
  47. 47What is the 2nd disadvanatge of specialisation and tradeThe 2nd disadvanatge of pecialisation and trade is overdependence on imports/exports.
  48. 48Provide an example of overdependence on importsOverdependence on imports can occur, e.g in 2009 when Russia cut off their gas supply to many countries in Europe, bulgaria forced to stop production in certain factories, worsening its economy
  49. 49Provide an example of a country overdepending on exportsSaudi Arabia overdepend on their exports, e.g 50% of Saudi Arabia's real GDP comes from exporting oil, therefore economy is not diversified
  50. 50What are the 5 characteristics of globalisationThe 5 characterisitcs of globalsiation are
    1. increased international movement of labour
    2. increased international movemnt of financial capital
    3.increased specialisation
    4. increased international trade
    5, increased trade-to-GDP ratios
  51. 51what are the 3 causes of globalisationThe 3 causes of globalisation are
    1. Improvements in transport
    2. Improvements in IT
    3. Trade liberlisation
  52. 52How has improvements in transport been a cause of globalisationImprovements in transport has made it easier to travel. E.g it used totake 5 weeks totravel from London to Sydney by boat but now it takes 2 hours. This increases the international movement of labour.
  53. 53in the 1950s, how many people were living in extreme poverty compared o nowIn 1950s, 75% of the global population were living in extreme poverty, however nowless than 10% live in extreme poverty
  54. 54What is one benefit of globalisation on the governmentOne benefit of globalisation is an increase in tax revenue, as countries trade more with each other, seen by the characterisitc of trade -to-GDP-ratios
  55. 55In the last 20 years, how much has India's trade to GDP ratios increasedIn the last 20 years, India's trade to GDP ratio has increased by 75%
  56. 56How much did the US, in 2016, raise from tariffs.In 2016, the US raised $37.8bn through tariffs. This extra tax revenue can be used to fund government spending that has positive externalities such as the new london crossrail, education, or renweable energy
  57. 57What is one negative imact on globalisation on the governmentOne negative impact of globalisation on the government is transfer pricing resulting in tax evasion.
  58. 58What is transfer prcicngTransfer pricing is when large TNCs can evade billions in tax as they own lots of small daughter companies who operate in countries that require different corporation tax
  59. 59Provide two daughter companies of AppleApple, for example have daughter companies annobit and Beats electronics
  60. 60in 2016, when Apple were caught pushing profits into one its daughter companies in Ireland, what happenedIn 2016, the European Commission ordered Apple to pay $13bn in unpaid taxes
  61. 61How much does the Global Financial Integrity research group estimate is lost through transfer pricingThe Global Financial Integrity research group estimate several hundred billion dollars of tax is lost through transfer pricing
  62. 62What are the benefits of globalisation on producersThe benefit of globalisation on producers is lower poduction costs from relocation, due to imporvements in transport, IT, containerisation and trade liberalisation
  63. 63What are wages like in China compared to the UKIn China, wages are 10-25% of UK wages
  64. 64What is a disadvantage of globalisation on producersGlobalisation negatively impacts small businesses as TNCs create high barriers to entry.
  65. 65How many countries are Mcdonalds located inMcdonalds are located in 119 countries and the more big macs they sale, the larger their economies of scale through purchasing economies.
  66. 66In France, how many restaurants close every year, and how many do Mcdonalds openIn France, roughly 3000 restaurants close every year, while Mcdonalds open between 70-80 new resturants
  67. 67What is the benefit of globalisation on consumersThe benefit of globalisation on consumers is lower prices and wider choice as international trade has increased
  68. 68Provide 3 examples of goods that Uk consumers importYou can get bananas from the Caribbean, tea from India, and Beer from Germany
  69. 69What is a remittanceA remittance is when a foreign woker transfers money to an individual in their home country,
  70. 70Improvements in IT, has meant remittances has increased. What was the value of global remittances in 2015In 2015, global remittances were estimated to total $600bn
  71. 71What is a negative effect of globalisation on workersThe negative effect of globalisation on workers is structual unemployment as increases in specialisation, due to trade liberalisation and comparative advantage has occured.
    Therefore many manufacturing jobs has been transferred to developing countries
  72. 72Provide an exmaple of structual unemployment in the UKHartlepool, a former steel town on the North East coast of England used to prdouce lots of ships and steel. However,
  73. 73What are the four factors that influence a countrie terms of tradeThe four factors that influence a countries terms of trade is
    1. Raw material prices
    2.tariffs
    3. Exchange rates
    4. Inflation rates
  74. 74What was the change in oil prices from 2002 - 208 and what effect did this haveIn 2002, oil prices were $20 a barrel, in early months of 2008 peaked at $145 a barrel, which was bad for countries who imort oil. Oil fell to $32 a barrel back in December 2008 after FC which is 80% depreciation
  75. 75How much oil does US and China imortThe US import 9 million barrels of oil a day and China import 6 million barrels
  76. 76How did Uk's exchange change in june 2016 to january 2017In 22nd june 2016, ER was £1=$1.48
    In jan 2017, ER was £1=$1.20
  77. 77What are the four factors that cause a change in a countries pattern of tradeThe four factors that cause a change in a countries pattern of trade is
    1, Comparative advantage
    2. Emerging economies
    3.Trading blocs
    4. Exchange rate
  78. 78How has the emerging economy brazil changed patterns of tradeIn 1970s, Brazil's exports totalled $3bn whereas in 2014 they reached $230bn
  79. 79What affect does trading blocs have on tradeTrading blocs result in trade creation but also trade diversion
  80. 80Provide example of a trading bloc and its affect on tradeDue to Nafta, 30% of US exports go to either Canada or Mexico
  81. 81How much trade existed between EU countries in 2017in 2017, total trade amounted to $3.1 trillion between EU countries
  82. 82An example of current transferes include foreign Aid. How much does the UK give to Africa in Foreign AIDThe UK donates £2.5 billion to Africa each year
  83. 83What is a current trasnferA current transfer is when money is transferred abroad without anything in exchange
  84. 84What was UK's current account deficit in 2016UK's current account deficit in 2016 was £111bn
  85. 85What was Germany's current account surplus in 2016In 2016,Germany had a current account surplus of 268 bn euros
  86. 86What is the capital and finacial accountThe capital and financial account tracks investment
  87. 87What are the two main parts of the capital and financial accountThe two main parts ofthe capital and financial acoount are
    1. FDI
    2. Hot money flows
  88. 88What is FDIFDI is investments made by a firm in one country to a firm in another in another country, to gain control over the foreign firm
  89. 89How much FDI went into China in 2017An estimated $144bn of FDI was invested in China in 2017
  90. 90What are hot money flowsHot money flows is money that investors move internationally between banks to maximise the intrest they recieve
  91. 91Provide an example of a tariff Donald trump imposed on a south Korean productAn example of protectionism is the 30% tariff US imposed on cheaper South Korean products
  92. 92In 2017, How much did China spend on US exports and vice versaIn 2017, China spent $130bn on US exports, whereas US imported $506bn worth of Chinese exports, meaning that the US had a negative trade balance with China, of -$376bn
  93. 93A current account deficit is usually balanced by a a capital and financial account surplus. Provide an example of China investing in the US capital and financial accountChina can purchase capital in the US, such as taxi factories in New York or might purchase shares in Microsoft on the American financial market
  94. 94As a result of China buying US government bonds, how much money does the US owe to ChianaAs a result of China buying governemnt bonds, the US owe China $1.2trn in bonds and interests, due to US' current acoount deficit
  95. 95What is the counter argument for current account deficit causing AD to decreaseWhilst a current Account deficit cause AD to fall, may only be a small percentage of GDP. For example in 2016, UK's current account deficit was $111bn Real GDP was £1,850 bn meaning deficit was only 6% of GDP. Furthermore, if at full employment, GDP may not change at all in the long run
  96. 96What are the effects of a current account deficit on exchange ratesbuying imports increases supply of pound, while demand for pound falls due to low exports. As a result deprecian of ER. Which will scare of investors, who'd rather invest in a better currency, increasing Supply again, meaning consumers can't afford to import, lower living standards.
  97. 97What are the current acount surpluses of China and GermanyThe current account surpluses of China and Germany are $62bn for China and $27bn for Germany
  98. 98What are expenditure reducing policiesExpenditure reducing policies are policies which aim to reduce expenditure on all goods in order to reduce import expenditure and improve the current account.
  99. 99what are expenditure switching policiesExpenditure switching policies are policies which aim to switch expenditure from imported goods to domestic goods. They include trade barriers and low interest rates.
  100. 100Proivde two examples of UK consumers switching to domestic productsAn example is swirching mexican colgate tooth paste to British Kingfisher toothpaste or Indian Primark T shirts to Tesoco F and F shirtsb
  101. 101What are the two main factors of expenditure switching policiesThe two main factors of expenditure switching policies are trade barries (trump tariffs) and low interest rates (hot money outflows).
  102. 102What is the J curve effectThe J curve effect is when import demand is ineastic and thus importers can't immediately respond to changes in exchange rates as companies like tesco are locked into contracts with meat producers in poland. As a result, current account initially worsens
  103. 103When is the Marshall-Lerner condition (start of the long runr) metThe Marshall-Lerner condition is met when PEDm + PEDx >1, only then wil lcurrent account start to improve on the J curve as import demand is elastic
  104. 104how will supply side policies reduce impot expenditureSupply side policies such as lower cooporation tax, means supply increases, also profit is invested to increase productivy so LRAS increases as well, loqwer inflation in SR AND LR, domestic consumtion increases, and exports cheaper
  105. 105What is the Harrod domar modelThe harrod domar model is low incomes, means lows savings, means low investment, low growth, which meant low incomes, low savings and so on. overnments make no corpoation tax revenue or income tax revenue
  106. 106What are the 3 ways to restrict free tradeThe 3 ways to restrict three trade are quotas, subsidies to domestic producers and non-tariff barriers
  107. 107What are non-tariff barriersNon-tariff barriers include regulations regarding health and safety, environmental regulations and correct labelling of products to show a best b4 date
  108. 108What are the four main reasons for restrictions on free tradeThe four main reasons for restrictions on free trade are
    1. Prevent dumping
    2. protect domestic employment
    3. Protecting infant industries
    4. Health and safety
  109. 109What is dumpingDumping is when firms aggresively cut prices below AVC, to force out domestic firms from a market
  110. 110What are tariffsTariffds are an indirect tax on imported goods which raises the domestic price of imports and reduces its demand
  111. 111What are QuotasA strict limit on the quantity of imports
  112. 112What are Infant industriesInfant industries are new industries which do not benefit from economies of scale and can't compete with larger industries from other countries
  113. 113What does the success of a tariff depend onThe success of a tariff depends on the sze of the tariff, the PED and PES
  114. 114What are the 3 measures of international competitivenessThe 3 measures of internatinal competitiveness are
    1. export prices
    2. unit labour costs
    3. Global competitiveness index
  115. 115Define Unit labour costsUnit labur costs are the average amount spent on wages per unit of output
  116. 116What is the effect of lower unit labour costsLower unit labou costs, shifts SRAS to teh right meaning lower price level
  117. 117Define the global competitiveness indexThe global competitiveness index is measure of international competitiveness annually calculated by the World economic forum
  118. 118Name 3 factors in the global competitiveness index3 factors in the global competitiveness index
    1. Health
    2. Techonolgy
    3, Education
  119. 119What country has the highest GCI score and what is the UK'ssingapore has the highest Global comp score of 84.8 and UK is ranked 9th with 81.2
  120. 120What is the real ER formulaReal Exchange Rate = (Nominal Exchange Rate x Domestic Price Level)/Foreign Price Level

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Economics Flashcards on MacroEconomics 4 random Stats, created by Benjamin Enye on 01/09/2019.
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Benjamin Enye
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