I need explanations

(c) Ireland, as a small open economy, relies on international trade. Discuss the factors which affect the competitiveness of Irish-based firms in international trade. (25 marks) [75 marks] Page 6 of 7 7. (a) Outline, using appropriate figures, how the Irish economy performed in the past twelve months in each of the following areas: (i) price inflation (ii) the national debt (iii) cconomic growth (iv) employment. (20 marks) (b) Outline the positive and negative economic consequences of a Current Budget Surplus. (25 marks) (c) (i) Outline, giving examples, TWO reasons why Irish semi-state companies are facing increasing competition. (ii) Discuss ONE advantage and ONE disadvantage of this development for: Consumers Employees of semi-state firms (30 marks) [75 marks] 8. (a) (i) Name the TWO main sources from which the figures relating to unemployment in the Irish economy are taken. (ii) State, with reasons, which of these gives the most accurate measurement of Irish unemployment. (20 marks) (b) (i) Define full employment. (ii) Outline the major economic consequences of very high employment in the Irish economy. (30 marks) (c) In 2001 the Irish economy began to experience a downturn in the level of economic activity. Discuss the reasons for this development in the Irish economy. (25 marks) [75 marks]1. (a) Outline THREE key features of an oligopolistic market and state ONE example of an oligopolistic market in Ireland. (20 marks) (b) With the aid of ONE clearly labelled diagram: (i) Explain the shape of the demand curve facing a firm in oligopoly. (ii) Explain the relationship between this demand curve and the firm's marginal revenue curve. (iii) Explain the long run equilibrium position of this firm. (40 marks) (c) Explain THREE methods by which firms in oligopolistic markets may collude. (15 marks) [75marks] 2. (a) Define (i) price elasticity of demand and (ii) cross elasticity of demand. In each case, state the formula by which it is measured. (20 marks) (b) When the price of Good X is 627, the quantity demanded of Good Y is 1,200 units. When the price of Good X falls to 623 (the price of Good Y unchanged) the quantity demanded of Good Y falls to 800 units. (i) Using the cross elasticity of demand formula, calculate the cross elasticity of demand for Good Y. Show all your workings. (ii) Is Good Y a substitute for or complement to Good X? Explain your choice. (25 marks) (c) A firm has the following price elasticities of demand for two goods, Good X and Good Y: Good X ..... 2.0 Good Y ..... 0.5 What changes, if any, should the firm make in the selling price of each of the goods to increase overall revenue. Explain your answer. (30 marks) [75 marks] Page 4 of 7 3. (a) (i) State and explain FOUR factors which affect a consumer's demand schedule, other than the price of a good itself. (ii) Explain the economic rationale for assuming that a person's demand curve for a normal good slopes downward. (30 marks) (b) For something to be considered an economic good, it must possess certain characteristics. State and explain THREE of these characteristics. (20 marks) (c) A consumer spends all income on two goods, Good A and Good B. Both goods are normal goods but they are not complementary goods. The price of Good A is reduced and the price of Good B remains unchanged. The consumer continues to spend all income on the two goods. Distinguish between the substitution effect and the income effect of the price reduction in Good A. (25 marks) [75 marks] 4. (a) Define each of the following: (i) Supply price of a factor of production. (ii) Transfer earnings. (iii) Economic Rent.(b) A principal factor influencing the demand for labour by an individual firm is the Marginal Revenue Productivity of Labour (MRP). (i) Explain what is meant by the underlined term. (ii) Discuss the factors, other than MRP, which influence the demand for labour by an individual firm. (30 marks) The diagram below represents the supply curve of labour to a particular firm. Supply Curve Wage rate Supply of Labour Explain the effect which each of the following developments may have on this supply curve. Illustrate each answer by means of a diagram. i) The workers shift their preference towards increased leisure time. (ii) The workers' trade union negotiates a minimum wage. (25 marks) [75 marks] Page 5 of 7 5. (a) Discuss the ways in which money can contribute to the smooth working of an economy. (20 marks) (b) Explain the likely economic effects if: (i the supply of money grows at a faster rate than a country's production of goods and services (ii) the supply of money grows at a slower rate than a country's production of goods and services. (20 marks) (c) (i) Explain what is meant by the term price inflation. (ii) Name the main index used to measure price inflation in the Irish economy. (iii) Outline the economic consequences of a rise in the rate of price inflation in Ireland. (35 marks) [75 marks] 6. (a) Explain the following terms and show the relationship which exists between both: (i) Gross Domestic Product at Factor Cost Gross National Product at Market Prices. (20 marks) (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. (20 marks) (c) Discuss the positive and negative economic consequences which a fall in the level of economic growth (GNP) may have on the Irish economy.(Ill (It) (I) (hi (I!) {l} a RISE in the general level ofVAT; {ii} a REDUCTION in subsidies to rst-time house buyers. Explain your answer in each case. (2'0 marks) Discuss the positive and negative economic consequences which a fall in the level of economic growth [GNP] may have on the Irish economy. {35 alerts) [1'5 marks| Page 6 of 'l' Discuss the economic effects which the recent rise in Ireland's population may have on the Lrish economy. {25 marks) Outline the effects which a rise in the level of'unemployment in Ireland may have on: {[1 Government current nances. {ii} The Balance of Payments {Current Account}. {iii} Price Ination. {2!} marks) Ltnmigration replaced high levels of emigration during the 'Celtic Tiger' period. {t} Discuss THREE reasons why the mud has changed from emigration to immigration in Ireland. {ii} Discuss the economic consequences [positive and negative} for a countryr experiencing increased immigration. {3!} marks) [75 marks] Explain howl.r speciaJisation and the division of labour promotes globalisationfinternational trade. {2!} marks) The World Trade Organisation {WTO} aims to reduce trade barriers between countries. {1) Outline THREE possible economic advantages of free trade. {H} Explain THREE economic reasons whyr countries may impose barriers to restrict trade. {iii} State and explain TWO methods of mtricting free trade. {35 marks) Adam Smith. author of 'The Wealth of Nations' [1?76). explained the reasons for and benets of free trade. Outline FOUR other areas in which he made contributions to economic thought. {2!} marks) [75 marks] Answer six of the nine short response type questions in the spaces provided. 1. Define regressive tax and state TWO examples of this type of tax. Definition: Example 1: Example 2: (16 marks) 2. State FOUR economic aims of government. (i) (ii) (iii) (iv) (16 marks) 3. Define Monetary Policy. State TWO measures by which the European Central Bank implements monetary policy within the euro-zone countries. Definition: Measure 1: Measure 2: (16 marks) 4. Define the term 'Balance of Payments on Capital Account'. State TWO examples of items which may appear in it. Definition: Example 1: Example 2: (16 marks) 5. State THREE economic reasons why entrepreneurs are important to the development of an economy. (i) (1i) (iii) (16 marks) Page 2 of 7 6. Using the diagram, explain how higher consumers' incomes (other factors unchanged) may affect the demand curve for mobile phones in Ireland. Diagram Explanation P (17 marks) 7. State FOUR economic assumptions used for analysing consumer behaviour