1 (a) Explain the following terms and show the relationship which exists between both:

(i) Gross Domestic Product at Factor Cost

(ii) Gross National Product at Market Prices.

(b) Outline the effects which each of the following could have on the level of GNP at Market Prices.

(i) a RISE in the general level of VAT;

(ii) a REDUCTION in subsidies to first-time house buyers.

Explain your answer in each case.

(c) Discuss the positive and negative economic consequences which a fall in the level of economic

growth (GNP) may have on the Irish economy.

2. (a) Discuss the economic effects which the recent rise in Ireland's population may have on the Irish

economy.

(b) Outline the effects which a rise in the level of unemployment in Ireland may have on:

(i) Government current finances.

(ii) The Balance of Payments (Current Account).

(iii) Price Inflation.

(c) Immigration replaced high levels of emigration during the 'Celtic Tiger' period.

(i) Discuss THREE reasons why the trend has changed from emigration to immigration in

Ireland.

(ii) Discuss the economic consequences (positive and negative) for a country experiencing

increased immigration.

3. (a) Explain how specialisation and the division of labour promotes globalisation/international trade.

(b) The World Trade Organisation (WTO) aims to reduce trade barriers between countries.

(i) Outline THREE possible economic advantages of free trade.

(ii) Explain THREE economic reasons why countries may impose barriers to restrict trade.

(iii) State and explain TWO methods of restricting free trade.