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Economics National 5 Exam 2019 > Unit 3 > Flashcards

Flashcards in Unit 3 Deck (16)
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1

Easing why supply curve slope upwards

Producers get more profit per unit/profit motive so they are willing to sell more

Higher prices make producing more profitable so new producers might enter the market/ current producers will move resources

2

Advantages of global trade

Offers consumers wider variety of goods that apcant be produced in their country

Cheaper and higher quality goods

3

Disadv of global trade

Greater unemployment due to more competition of bigger firms

Smaller businesses have to close as can’t compete with bigger businesses

Dumping - other countries can sell large amounts of cheap products in your country to gain market share

4

Barriers to trade

Tarifas this is a tax on imports to limit the number of goods entering limited

Quota this is a set limit of how many of thst good can enter the country

5

Define exchange rate

An exchange rate is the price of one currency in terms of another

6

An appreciation or strengthening of the exchange rate means £1 buys you more dollar and a depreciation or weakening means £1 buys you less dollar

This means that strengthening less exports

.

7

Advantages of using the euro

Stable exchange rate

Price transparency as it’s easier to compare prices with other country

8

Disadvantages of using euro

Loss of monetary independence as uk would no longer control interest rate

9

Characteristics of a developing country

Low gdp per capita
Lack of infrastructure
Poor literacy rate

10

Characteristics of emerging economy

Rapid economic growth
Increasing standards of living
Improved infrastructure

11

Characteristics of developed countries

Sustained economic growth
Hugh life expectancy
High literacy rate

12

Types of aid given to developing countries

Free trade
The supplies of schools supplies
Emergency aid so for example food if there’s a flood

13

How can households plan for financial uncertainty

Save more spend less

14

A Scottish import

Oranges

15

How can government create economic growth

Improve education
Build new infrastructure

16

Define average revenue

the amount of money from selling one unit