(a) (i) Explain the term exchange rate. (ii) Outline the possible economic effects on the Irish economy of an appreciation in the value of the euro E against the US $. (b) "The Balance of Payments (BOP) Current Account had a surplus of 62.7 billion in the second quarter of 2015, equivalent to 5.2% of quarterly GDP." (Source: Nevin Economic Research Institute (NERI), Autumn 2015) (i) Describe the main elements of Ireland's balance of payments (BOP) account. (ii) Explain what is meant by a surplus on the BOP current account. (iii) Can a surplus on the BOP current account pose problems for an economy? Explain your answer. (c) "Irish SMEs (Small and Medium Enterprises) are too dependent on the home market, Europe warns. " (Source: Irish Independent, November 2015) Outline the benefits and challenges for Irish SMEs operating in foreign markets. (a) In the case of any two of the following three pairs, distinguish between the two concepts. (i) Income and wealth (1i) Progressive taxes and regressive taxes Impact of taxation and incidence of taxation. (b) (i) Outline two economic policies which the Irish Government could consider to address inequality in Ireland. (ii) Policies introduced to reduce inequality may make it more difficult for the government to achieve other economic aims, Explain this statement, using examples to support your answer. (c) A clean and healthy environment is a scarce and valuable resource. Outline actions the Irish government could take to protect the environment. (a) Outline, using appropriate figures, how the Irish economy has performed in the last 12 months in each of the following areas: Economic growth Price level . . Unemployment Interest rates. (b) "The government will run a budget deficit of only 1% of GDP next year, while gross debt will fall to 89% of GDP by the end of 2016." (Source: Irish Examiner, November 2015) (i) Discuss how the Irish Government has achieved reductions in the budget deficit and gross debt in recent years. (ii) Outline the possible costs to Irish society in achieving these reductions. (c) Ireland's population has become increasingly urbanised. Outline the economic consequences (positive and negative) of this development for Ireland