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(2) One of the economic aims of the Irish Government at present is to decrease government current expenditure. Discuss four other economic aims of the

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(2) One of the economic aims of the Irish Government at present is to decrease government current expenditure. Discuss four other economic aims of the Government and use relevant statistics/information to justify your choice. (b) 'Most eurozone countries with large deficits are using VAT to generate revenue." (Irish Tax Institute, The Irish Times, November 2011) (i) Explain, using examples, the difference between direct taxes and indirect taxes. (ii) Discuss the economic advantages and disadvantages for the Government of increasing VAT rates instead of income tax rates in its most recent budget. (iii) Outline how imposing a tax on sugary foods (e.g. fizzy drinks) could benefit the Irish economy. (e) State and explain two economic arguments in favour of and two economic arguments against third level students contributing to the cost of their higher education. (a) The table below illustrates the Law of Comparative Advantage. Country Output (production per worker per week) Food Clothing United Kingdom 40 units 10 units China 60 units 20 units Total Output 100 units 30 units (i) State the Law of Comparative Advantage. (ii) Explain how both countries benefit from international trade in the above example. (iii) Calculate the terms of trade for both goods. Show your workings. (b) (i) Discuss three economic factors which affect the competitiveness of Irish firms in international trade. (ii) Outline how international trade benefits Irish consumers. (e) "Euro area growth is forecast to slow down from 1.6% in 201 1 to 0.2% in 2012'. (OECD, 2011) Discuss the possible effects on the Irish economy of the slowdown in the growth rate in the euro area. (a) It is often said that 'push' factors and *pull' factors drive emigration. (i) Describe two economic 'push' factors OR two economic "pull' factors currently affecting emigration from Ireland. (ii) State and explain the positive and negative consequences of emigration for the Irish economy. (b) (i) State the rate of unemployment in Ireland during 2012, as indicated by the Live Register. (ii) Outline the limitations of the Live Register in measuring the rate of unemployment in the Irish economy. (e) The economist John Maynard Keynes, author of The General Theory of Employment, Interest and Money (1936), supported the use of fiscal policy by Government to create full employment. (i) Explain the above statement. (ii) Discuss two other key concepts which Keynes contributed to economic thought

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