Tiger

Question 1

What is TIGER an acronym for?

Answer 1

Macroeconomic indicators

Question 2

What does each letter in TIGER mean?

Answer 2

Trade
Inflation
Growth
Employment
Rest - eg. productivity

Question 3

What is demand pull inflation?

Answer 3

When the price increases due to an increase in demand in an economy

Question 4

What is cost push inflation?

Answer 4

When the price level increases due to an increase in the costs to businesses

Question 5

Inflation definition?

Answer 5

A general increase in the prices of goods and services, and a fall in the purchasing value of money

Question 6

What two ways is inflation measured?

Answer 6

CPI - CONSUMER PRICE INDEX
RPI - RETAIL PRICE INDEX

Question 7

How does CPI work?

Answer 7

Each month, the ONS collects around 180,000 prices of 700 items and compare changes to previous month

Question 8

What does PIMMFACED show us?

Answer 8

Problems of a free market

Question 9

What is a free market?

Answer 9

Economic system based on supply and demand with little or no government control

Question 10

Examples of a free market?

Answer 10

Restaurant owners can decide what types of foods they’ll offer, where they’ll run their business, and what they’ll charge for their meals

Question 11

What does each letter stand for in PIMMFACED?

Answer 11

Public goods
Inequality
Monopoly
Merit goods
Factor immobility
Agriculture
Cyclical instability
Externalities
Demerit goods

Question 12

Definition of public goods?

Answer 12

A public good is a good with the characteristics of non rivalry and non excludability

Question 13

Examples of public goods?

Answer 13

Street lighting
National defence

Question 14

What does non excludable mean when talking about public goods?

Answer 14

You cannot prevent someone from using it if they don’t pay.

Question 15

What does non rivalry mean when talking about public goods?

Answer 15

One person’s use does not reduce availability for others

Question 16

What does inequality mean when referring to PIMMFACED?

Answer 16

No social security net for those who are unemployed or on low income when in a free market

Question 17

What is a merit good?

Answer 17

A good that is under-provided because people underestimate the benefits

Question 18

Examples of merit goods

Answer 18

Education
Healthcare

Question 19

Monopolies can develop easily in a free market. Why are they bad?

Answer 19

Owners are in a position to set high prices and exploit both consumers and workers

Question 20

When does factor immobility occur?

Answer 20

When a factor of production cannot move easily from one region of an economy to another

Question 21

Why is agriculture on PIMMFACED?

Answer 21

Because it is prone to failure and often requires help

Question 22

What is cyclical instability?

Answer 22

Economic recessions which leads to corresponding unemployment

Question 23

Why is externalities on PIMMFACED?

Answer 23

Because there would be an over-consumption of goods like tobacco with negative externalities

Question 24

De-merit good definition?

Answer 24

Goods which are over-consumed because negative effects are underestimated

Question 25

Example of de-merit goods?

Answer 25

Drugs Alcohol

Question 26

GDP per capita formula?

Answer 26

gross domestic product / midyear population

Question 27

What does very silly fools suck their chips show?

Answer 27

Types of unemployment

Question 28

What does Very stand for?

Answer 28

Vocational unemployment

Question 29

What does silly stand for?

Answer 29

Seasonal unemployment

Question 30

What does fools stand for?

Answer 30

Frictional unemployment

Question 31

What does suck stand for?

Answer 31

Structural unemployment

Question 32

What does their stand for?

Answer 32

Trade union/traditional unemployment

Question 33

What does chips stand for?

Answer 33

Cyclical unemployment

Question 34

frictional unemployment definition?

Answer 34

temporary unemployment caused by imperfect information where workers are unable to find work for their skill set - people looking for jobs

Question 35

cyclical unemployment definition?

Answer 35

Unemployment caused by a lack of demand for goods and services

Question 36

seasonal unemployment definition?

Answer 36

people are temporarily out of work due to the seasonal nature of certain industries

Question 37

Structural unemployment definition?

Answer 37

long-lasting unemployment that comes about due to shifts in an economy

Question 38

What is trade union unemployment?

Answer 38

occurs when trade unions negotiate for wages that are higher than what employers are willing or able to pay so companies may hire less workers

Question 39

What is vocational unemployment?

Answer 39

Mismatch between the workers skills and the jobs available

Question 40

What does the Claimant Count record?

Answer 40

record the number of people claiming unemployment-related benefits

Question 41

What does the LFS estimate?

Answer 41

unemployment level and the unemployment rate on a monthly basis

Question 42

Examples of costs of unemployment?

Answer 42

Lost output Social costs Less tax rev for gov

Question 43

What is hysteresis?

Answer 43

UNEMPLOYMENT BECOMES LONG-TERM IN NATURE - THEY MAY LOSE SKILLS - BECOME UNEMPLOYABLE

Question 44

Examples of benefits of unemployment?

Answer 44

Greater pool of workers for firms Low inflation Improved current account position Workers have time to find suitable job

Question 45

What is a budget deficit?

Answer 45

government spends more than revenue they receive

Question 46

What is a budget surplus?

Answer 46

government revenue exceeds government spending

Question 47

What is direct tax?

Answer 47

Taxes based on income such as income tax or national insurance

Question 48

What is indirect tax?

Answer 48

Taxes on spending, examples of these would be excise duty and value added tax

Question 49

Why is income tax a progressive tax?

Answer 49

Because tax rises as an individual's annual salary rises

Question 50

What is national insurance?

Answer 50

A contribution that qualifies towards certain benefits and state pension

Question 51

What is corporation tax?

Answer 51

A tax your company or association pays to HM Revenue and Customs (HMRC) on profits in an 'accounting period'

Question 52

What is inheritance tax?

Answer 52

A tax on the estate (the property, money and possessions) of someone who's died

Question 53

Why is VAT a regressive tax?

Answer 53

Because it decreases depending on the price of a product

Question 54

Who pays a higher share of their income in VAT, rich or poor person?

Answer 54

Poor

Question 55

What is exercise duty?

Answer 55

Taxes imposed on the value of goods

Question 56

Why is exercise duty a regressive tax?

Answer 56

Can fluctuate depending on price and how much consumed