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Economics National 5 Exam 2019 > Unit 3 > Flashcards

Flashcards in Unit 3 Deck (16)
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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


Advantages of global trade

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

Cheaper and higher quality goods


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


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


Define exchange rate

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


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



Advantages of using the euro

Stable exchange rate

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


Disadvantages of using euro

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


Characteristics of a developing country

Low gdp per capita
Lack of infrastructure
Poor literacy rate


Characteristics of emerging economy

Rapid economic growth
Increasing standards of living
Improved infrastructure


Characteristics of developed countries

Sustained economic growth
Hugh life expectancy
High literacy rate


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


How can households plan for financial uncertainty

Save more spend less


A Scottish import



How can government create economic growth

Improve education
Build new infrastructure


Define average revenue

the amount of money from selling one unit