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Question 1

Difference between economic growth and economic development

Answer 1

1) Economic growth refers to an increase in a country’s output of goods and services (measured by GDP).
Economic development includes economic growth but also improvements in living standards, education, health, and income distribution.
2. Economic growth is quantitative—it focuses only on numbers like GDP and income. Economic development is qualitative—it looks at overall well-being and social progress.
3. Economic growth is measured by metrics like changes in GDP or GNP per capia. Economic development is measured using indicators like the Human Development Index (HDI), literacy rates, and life expectancy.

Question 2

What is international trade?

Answer 2

international trade refers to ALL transactions that tave poce between countries that will eventualy lead to inflows and outflows.
Of funds.
.. Not only imports and exports (100tn visible and invisibe) but also includes investing activities and borrowing.

Question 3

What is the current account?

Answer 3

• Measures how well a country is doing in all of its trade.
• Includes visible and invisible trade balance, net profits, interests and dividends and also money transfers and grants.

Question 4

What are factors that affect international competitiveness?

Answer 4

(Less opp cost)
- Productivity
- Inflation
- Exchange Rate
- Tax rate
- cost of doing a business

Question 5

If all factors stay constant what is this called?

Answer 5

Ceteris Paribus

Question 6

PED equation

Answer 6

Og price / og qtyD x 4 qtyD / 4 price

Question 7

What are tariffs?

Answer 7

Tariffs are taxes placed on imported goods to make them more expensive and protect domestic industries. (Like customs)

Question 8

What are two disadvantages advantages of a single currency?

Answer 8

Adv
- increase in global influence and recognition
- easy price comparison (promoting competitiveness)
Dis adv
- strict fiscal rates (budget rules that may limit ability to respond to economic crises)
- economic inequality (common policies may not work for everyone)

Question 9

EFC?

Answer 9

• Economic financial committee
• deals with policy coordination, financial situation, fiscal polices and exchange rate policies.

Question 10

CMFB?

Answer 10

• Committee of monetary financial and balance of payments
• financial, monetary and balance of payments statistics helping work programs.

Question 11

Excise vs customs tax

Answer 11

Excise - decrease consumption of a g or s to REDUCE SPENDING
Customs - imposed on M and X

Question 12

How are interest rates money?

Answer 12

Because interest rates are the price of money and interest rates determine how much money is supplied in an economy.