macro Flashcards
(28 cards)
current account on the balance of payments
all exports and imports are recorded
Describe one way business activity can damage the environment
pollution.Busines that sells cars realeses carbon dioxide to the atmosphere
State one possible impact of a current account deficit
Increasing unemployment
monetary policy
using interest rates and money supply to control inflation and economic growth.
Describe one advantage of privatisation for a government.
Generates revenue which can help the government to invest in other areas
State one possible reason for a current account surplus.
Value of exports is greater then the value of imports
relative poverty
When someone has less income than others they cannot afford a normal standard of living.
income inequality
unequal distribution of income throught an economy
Describe one role of the World Trade Organization (WTO)
to help countries resolve trade disputes and ensures that trade flows smoothly and fairly between countries.
State one possible macroeconomic objective for a government.
Economic growth
imports
buying good or services from another country
State one possible trade-off with economic growth
inflation
exports
sale of goods or services to another country
globalisation
Growing interconnection of the world’s economies
State one role of a central bank
controlling inflation
current account surplus
When the value of exports exceeds the value of imports
State one possible disadvantage of economic growth
Inflation
privatisation
selling a compony controlled by the goverment to a private sector
deregulation
the removal of goverment rules
Describe one negative impact of economic growth.
pollution. Which can harm the environment and people’s health.
State one advantage of free trade.
Lower prices
pollution permits
a licence that allows a firm to release a certain amount of pollution.
Describe one reason why governments make benefit payments.
reducing poverty and meeting basic needs
state one type of unemployment
seasonal
