May/June 2007

In what way does Fig. 1 support the view that the BBC creates more value than viewers pay?

Production possibility curves

Explain how enterprise and division of labour contribute to an economy.

Factors of production

Explain how the rate of inflation is measured.

Balance of payments

Explain how expenditure-switching and expenditure-dampening policies differ as methods of correcting a balance of payments disequilibrium.

Labour market

Explain what GDP means.

National income statistics

Explain the meaning of productive and allocative efficiency.

Behavioural economics

Explain how analysing wage determination in perfect competition results in an equilibrium.

Long-run costs and economies of scale

Some people argue that they are better off in a rural area, where congestion and pollution are lower. Others prefer cities because they provide employment and a wider range of leisure activities. If opinions about living standards differ within one country in this way, is there ever any chance of comparing living standards between countries accurately?

National income statistics

Budget deficits are influenced by fiscal policy. Explain how multiplier analysis might be used to forecast the effects of changes in fiscal policy.

Fiscal policy

Explain whether population growth is likely to have been quicker in developing countries than in developed countries.

11.4

How far do you agree with the view that the principal objectives of economic government policy should be low unemployment and low tax rates?

Government macroeconomic policy objectives