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Principles of economics year 1 > EC1101 DATA > Flashcards

EC1101 DATA Flashcards

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1
Q

East vs Western Germany

A

in 1930s living standards similiar. Eastern germany has not achieved the same level of welfare as western Germany

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2
Q

North vs South Korea

A

in 1950s living standards were similar. NorthKorea operates under a more centralized, state-run system while south Korea has become one of the wealthiest countries, operating under a capitalist model

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3
Q

world bank or OECD data shows

A

income inequality supporting theories of economic disparity

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4
Q

chinas growth supports

A

modernization theory

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5
Q

global inequality supports

A

dependency theory

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6
Q

The UK government 2025 industrial strategy fouvses on supporting key industries affected by global tariffs

A
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7
Q

whats happening to the automative industry regarding the Uk 2025 industrial strategy?

A

there is extended hybrid sales till 20235 ehich have smaller manufacturers time to adjust eg: Aston Martin to adjust

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8
Q

whats happening to the steel industry regarding the UK 2025 Industrial strategy?

A

government is considering to nationalise British Steel simyjrope plant to 3000 jobs and looking to improve the industry

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9
Q

What happening to the trade industry regarding the Uk 2025 industrial strategy?

A

they are working on stronger trade deals with the US + EU to decrease impact of tarfiffs and expand trade

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10
Q

What is happenig to long term plan regarding the Uk 2025 industry strategy?

A

government launched a 10 year plan called invest 2035 to boost growth in key sectors,improve regulations and speed big projects`

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11
Q

imperial college and warwick college reported AI+ Automation will

A

78% of fitms adopting the ai and automation reported creation of new jobs

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12
Q

Institute for public policy research (PPR) warned

A

AI will replace 8 million jobs. there is also a £50 mil pilot for growth sector apprenticeships

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13
Q

Green Revolution and Agriculture Tech

A

introduced in 1940s - 1960s high yield crops,fertizilers, irrigation and machinery
Boosts global food production in Asia and Latin America
fall in Famines and increase in Food security
Modern tech eg: GMOs, Ai used to increase yields and fall in labour needs

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14
Q

Uk ageing Population 2025

A

1 in 5 UK residents over 65
fall in economic growth due to fall in workforce
state pension spending projected to increase in £110bn (2023) to older adults that use 3x more NHS resources than young people.
£140bn pressure on healthcare,pesnions and tax revenue

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15
Q

UK green Tech Investment 2025

A

£8.3bn invested in Great British Energy state owned Renewable energry. focusing on non-renewabke energy. solar panels have been plnned 200 in schools 200 NHS sites saving £45k year net zero economy growth.
increase in 10.1% in 2024 adds to £83.1bn in uk economy.
expects to unlock £40bn year in clean energy investment

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16
Q

The community led responses cost of lving crisis in Uk 2025

A

95% of people said the cost of living crisis has impacted them
45% of people have gone without food
things that are having most financial impact includes: Bills,Foods,Care costs and Transport

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17
Q

In 2024 regarding Food banks

A

Trussell distributed over 3 mil across Uk Food

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18
Q

Vaccination campaigns

A

people are more likely to get vaccinated if other do shows power of social norms and postive externalities

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19
Q

Covid 19 lockdown

A

people had to choose between income + safety, reflecting scarcity + resource allocation issues

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20
Q

Peer Pressure and recycling

A

social norms influence actions like recyling demostrating how peer behaviour encourages collective action

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21
Q

examples of low profit margins,ever-increasing scale

A

such as Tesco and Amazon

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22
Q

Examples of high profit margins

A

Apple and luxury brands

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23
Q

shopping preferences from covid

A

consumer prefer online shopping, city centre retail fell in demand, and moved to local high streets and convenience.
An increase in the growth of discount retailers and coffee shops
increases in demand for the hybrid shopping experience.
wilko and Debenhams shut down due to failure to adapt.

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24
Q

Netflix

A

over 230M users globally.
80% views come from personalised recommdations.
tracks viewing behaviour to churn guide. in order to increase retentuon and revenye per user

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25
Amazon
real time pricing changes every 10 mins. prices changes by location,prime status,browsing/purchase history prices vary till 20% across users applies price discrimination to match user willingness to pay.
26
Brazil Landownership
history of land inequality small group owns majority of land. Top 1% own 50% rural land. Movement MST emerged to protest land concentration
27
Uk Annouced £5bn 2024 Autumn Budget to address housing crisis and property inequality
£500 mil added to affordable homes programme to build 5000 houses £2bn to build 18,000 social and afforanle housing march 2027 goal is to decrease inequality in property access,support low income households and first time buyers
28
Gig Platforms : Uber/Delieveroo
own technology not assets workers are classifed contractors property and power are uin hands of platforms owners and shareholders who generate value. leads to asymmetric power,platforms control wages,rates,access to work. workers lack bargaining power and security.
29
NHS staffing shortages 2025
limited supply skilled labour in healthcare over 7.5million are waiting for procedures shows economy struggles to distribute scarce healthcare workers efficently to increase demand areas leads to rationing through delays and worse healthcare outcomes
30
Covid 19 lockdowns (oppoturnity cost in real life)
covid 19 forced individuals and goovernments to make trade offs. people had to pick between staying at home (health) ior goig work (money) shows real world oppoturnity cost affects decisions when resources like time and health and income are limited
31
National Minimum wage rise (2024)
april 2024 government increased national minimuk wage by 6.7% from £10.42 to £11.44 for workers aged 21+ helped low income workers cope with higher living costs following high inflation of 10% in 2022 policy rejects attempt to improve real income and decrease work poverty
32
Covid 19 recession - Global Pandemic outbreak
Lockdown businesses shut travel banned consumer demand fell. Supply chain collapsed factory collapse and closure shipping delays. Sharp fall in global output uk gdp fell to approx 10% in 2020 Lead to job losses, stimulus packages and central bank cuts lower to sharp global output drop
33
Post brexit investment dip (post-2016)
Uk voted to leave EU. Uncertainty about trade rules, regulations market access firms delayed/cancelled investment plans Business investment stagnated slows down Uk economic growth estimated GDP 3/4% by 2024 compared remaining in EU Brexit uncertainty = reduced business confidence and economic activity
34
35
Lost brexit investment dip 2016
Uk voted to leave EU Uncertainty about trade rules regulations and market access firms delayed cancelled investment plans Business investment stagnant slows down Uk economic growth economic growth estimated gdp loss of 3/4% by 2024 compared to Uk Reducing business confidence and economic activity
36
Flat Uk GDp growth in late 2024 shows signs of stagnation
Uk real GDP increased by 0.1% in Q4 2024 no growth Q3. Annual growth gdp grew by 0.9% up from 0.4%. Gdp fell by 0.1% in 2024 reflecting fall in individual living standards
37
CEO pay vs workers pay (Amazon/ apple)
Amazon ceo Andy Jassy totally compensation in 2021 was $212 million Apple ceo Tim Cook received $99mil in 2021 Average Amazon warehouse worker salary between $32k - $40k Whether apple retail worker salary between $35k- $45k Crow or let pay ratio in USA companies is 300:1 Shows power dynamics and bargaining power
38
Shareholder vs Stakeholder Capitalism
Milton Friedman popularised idea - stakeholder capitalism focuses on maximising profits for shareholders. Criticism is stakeholder capitalism worsens inequality and ignores workers welfare. Though it supports stakeholders capitalism and argues to build long term success and social stability
39
Government support for electric vehicle manufactures in 2025 amid global supply issues (UK)
ZEV mandate revived; hybrids allowed until 2035 • £120 million for plug-in van grants (taxis, vans, etc.) • £1 billion to Advanced Propulsion Centre (EV R&D) • Global supply chain issues
40
41
Government support for electric vehicle manufactures in 2025 amid global supply issues (USA)
7–9 EV manufacturing projects in 2025 (2.5 million vehicle capacity) • Heavy investment in domestic production and mineral sourcing
42
43
Government support for electric vehicle manufactures in 2025 amid global supply issues (CHINA)
5-minute EV charging tech (installed by CATL & BYD) • Rapid EV market growth • Strong government backing
44
45
Government support for electric vehicle manufactures in 2025 amid global supply issues (Global challenges)
China restricted exports of 7 rare earth elements • US-China trade tensions causing delays in EV production
46
Solar panel Mandate England
2027 all new homes in England required solar panels installed. Homeowners save over $100 annually energy bills for 4 years
47
Great British Energy (GBE) 2024
State renewable energy company in Aberdeen. Allocated £8.3bn invest in offshire wind,hydrogen, Targeting 8 GW of renewable power generation by 2030
48
Emission reduction
Greenhouse gas emissions fell by 3.6% in 2024 coal fell in 1966. Last coal fire station in September 2024
49
Carbon pricing in Sweden 1991
Carbon taxes in world €100 per tonne. Greenhouse gas emissions fell from 33% in 1990- 2020 GDP increased by 60% during same period Shifting to clean energy and low emission tech
50
Uk plastic bag charge
5p 2015 to 10p 2021 Single bag plastic carriage usage fell by 95% in main supermarkets Promoting reusable bag culture and awareness of plastic waste. Med to behaviour change and environmental benefit.
51
Economic impact of Uk plastic bag usage
Net zero economy grew by 10% operates at £83.1bn in gross value added Green job creation increases with investment in clean energy sector and listening employment opportunities
52
What triggered the 2008 Financial Crisis?
Subprime mortgage lending, lack of regulation on financial derivatives, excessive bank leverage.
53
What were the consequences of the 2008 Financial Crisis?
Lehman Brothers collapsed, global credit froze, worldwide recession.
54
What caused the global financial crash?
Poor lending + lack of regulation + risky financial products
55
What caused the 2023 Silicon Valley Bank (SVB) collapse?
Mass withdrawals, long-term bond losses from rising interest rates, tech sector slowdown, and panic among depositors.
56
What was the outcome of the SVB crisis?
SVB couldn’t cover withdrawals, was taken over by US regulators, and concerns spread to other regional banks
57
Summary formula of the SVB collapse?
High interest rates + tech slowdown + panic = SVB bank run and collapse.
58
Why did the Bank of England cut interest rates in 2024?
To boost credit supply and support slowing economic growth.
59
What were the economic indicators in late 2024?
Interest rates cut to 4.75%, inflation fell to 1.7%, GDP dropped to 0.25% per quarter.
60
What signs showed economic cooling in the UK in 2024?
Slowing wage growth and falling job vacancies.
61
What impact did the autumn 2024 budget have?
Added £70B in spending, which increased inflation risks.
62
How is the Bank of England responding moving forward?
Cautious about further rate cuts; balancing growth with inflation control.
63
How is climate change 2025 an example of a negative externality?
CO₂ emissions from cars/power plants harm society, but the market price of fuel doesn’t reflect the full cost, leading to overproduction and excess pollution.
64
What happens when a market ignores negative externalities like carbon emissions?
Too much carbon is released compared to the socially optimal level.
65
How is public transport a positive externality?
It reduces pollution and congestion, benefiting society more than just the passengers
66
Why is public transport underprovided?
Ticket prices don’t reflect the full benefit to society, leading to underinvestment
67
What is a key stat about UK road transport and emissions?
It accounts for 22% of total UK CO₂ emissions.
68
How has bus/train usage changed post-2020?
It hasn’t returned to pre-2020 levels, remaining 10–15% lower.
69
What should governments do to correct public transport underuse?
Subsidise/invest more in public transport to internalise the externality.
70
What is the key market failure in the UK energy market (2025)?
High household bills and standing charges despite renewable energy use.
71
What causes fuel poverty in the UK energy market?
Around 6 million households pay £300+ in standing charges yearly.
72
What are the reasons behind UK energy market failure?
Pricing doesn’t reflect energy efficiency • Regulatory gaps • Lack of investment in cheap renewable energy
73
How is the UK government responding to energy market failure?
Considering pricing reforms, but currently treats energy as commercial.
74
What is the gender pay gap and what causes it?
Women earn less despite similar qualifications due to underrepresentation in senior/high-paying roles. UK median gender pay gap 2024: 14% (women earned 86p for every £1 men earned).
75
What are zero-hour contracts and their impact?
Flexible contracts with no guaranteed hours, popular in retail/hospitality. Cause financial insecurity, harder for women to plan benefits. 3.5% of UK workforce on zero-hour contracts (late 2024)
76
What do persistent gender inequality and zero-hour contracts reveal about the labour market?
They highlight pay inequality, job insecurity, and an imbalanced power dynamic between employers and workers.
77
What were key labour market challenges in late 2023?
Unemployment: 4.2% (up from 3.9%) • Vacancies down for 24th month • Real wages up 2.2% • Trade pressures, rising costs (e.g. minimum wage) • Manufacturing job losses • Resilient wage growth
78
Uk response ( March 2020 - October 2021)
Allocated about £280bn to ensure unemployment insurance and stabilise economy during pandemic. Such as: - government supported loans - covid 18 job retention scheme to retain jobs - tax deferrals to ease financial burdens on businesses - business rate reliefs to reduce operational costs - grants Funding given to NHS, Local government transport infrastructure and employment support programs
79
Bank of England base rate
4.25% fell from 4.5% in may 2025
80
Inflation rate
2.6% same since march 2025
81
Unemployment rate
4.5% since march 2025

Principles of economics year 1 (2 decks)

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