OCR F585 January 2012: Extract 1

Includes:

  • Definitions that should come in handy for Extract 1 of the Stimulus Material - most of the definitions are taken from the textbook.
  • Questions on the graphs
  • Comprehension questions on the text

Apologies in advance - it is a mammoth quiz

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  • Created by: Josie
  • Created on: 24-12-11 13:50
What is a recession?
Two successive quarters (six months) of negative growth
1 of 24
What is business confidence?
A measure of how optimistic firms are feeling about the overall state of the economy
2 of 24
What are automatic stabilisers?
Changes in government expenditure and taxation receipts that take place automatically in response to the economic cycle
3 of 24
For example, automatic stablisers mean that when an economy is in a boom, taxation receipts would:
Rise because more people are in employment so more people pay taxes
4 of 24
At the same time government spending would also:
Fall because more people are in employment so the government spends less on unemployment benefits
5 of 24
What is a cyclical budget deficit?
A budget deficit that occurs because of changes in economic growth which result in changes in automatic stabilisers
6 of 24
What is a structural deficit?
A budget deficit that occurs because of occurs because of government discretionary spending. This is the deficit that remains regardless of whether the economy is in slump or boom
7 of 24
What is government discretionary spending?
Government discretionary spending is where the government deliberately alters government spending/taxation
8 of 24
What is short run economic growth?
An increase in AD
9 of 24
What is long run economic growth?
An increase in AS
10 of 24
What was the previous (Labour) government's sustainable investment rule?
Public sector net debt as a proportion of GDP should be held at a stable and prudent level, other things being equal net debt should be maintained below 40% of GDP over the economic cycle
11 of 24
What is Real GDP?
A measure of the total output, expenditure or income of an economy after adjusting for changes in the price level
12 of 24
What is Gross Fixed Capital Formation (GDCF)?
Total spending on capital goods not adjusted for the effects of capital depreciation, including replacement investment
13 of 24
When did GFCF become positive again?
Q3 2009
14 of 24
However it decreased on the previous quarter in:
Q4 2009
15 of 24
GFCF then recovered and increased on the previous quarter in:
Q1 2010
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When did the financial crisis begin?
2007
17 of 24
What does the CBI Industrial Trends Survey aim to measure?
Business confidence
18 of 24
What does CBI stand for?
Confederation of British Industry
19 of 24
How much did the UK government spend on debt interest in 2010?
£44 billion
20 of 24
Of the items shown, on which area did the UK government spend the least in 2009-2010?
Industry, agriculture and employment
21 of 24
Of the items shown, on which area did the UK government spend the most in 2009-2010?
Education
22 of 24
Before 2007, public sector net borrowing peaked at:
3% of GDP
23 of 24
UK public sector net borrowing first started to rise (after 2005) in:
2007-2008
24 of 24

Other cards in this set

Card 2

Front

What is business confidence?

Back

A measure of how optimistic firms are feeling about the overall state of the economy

Card 3

Front

What are automatic stabilisers?

Back

Preview of the front of card 3

Card 4

Front

For example, automatic stablisers mean that when an economy is in a boom, taxation receipts would:

Back

Preview of the front of card 4

Card 5

Front

At the same time government spending would also:

Back

Preview of the front of card 5
View more cards

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