questions;

7. (a) "The Balance of Payments figures give the most detailed information on Ireland's large and rapidly growing internationally traded services sector' (The Irish Times, September 2012). (i) Explain the term Balance of Payments Current Account. (ii) Explain two economic consequences of a surplus on the Balance of Payments Current Account. (iii) Describe how foreign firms operating in Ireland may affect Ireland's Balance of Payments Current Account. (30) (b) Discuss the possible economic effects for the Irish economy of the euro rising in value relative to many other international currencies. (25) (c) 'Exporting businesses need to become the engine of economic growth.' (Statement of Strategy 201 1-2014, Department of Jobs, Enterprise and Innovation) Discuss the key challenges for Irish businesses on international markets. (20) [75 marks] 8. (a) "The rate of unemployment among 15-24 year olds in Ireland has increased by 74% between 2006 and 2011' (Profile 3 At Work, Central Statistics Office, July 2012). (i) Explain three economic consequences of a high rate of youth unemployment on the Irish economy. (ii) Discuss three measures which the Irish government may introduce to reduce the problem of youth unemployment. (30) (b) 'Ireland's National Debt was (137.6bn at the end of December 2012'. (National Treasury Management Agency) Discuss the disadvantages for Ireland of having a high National Debt. Outline two means by which Ireland's National Debt may be made more sustainable. (30) (c) Ireland, in common with many developed countries, is facing the challenges of an ageing population. Discuss the possible economic consequences of an ageing population for the Irish economy. (15) [75 marks]5. (a) Explain the following terms which are commonly used in estimating the National Income statistics of a country: Subsidies; Incomes-in-kind; . Net Factor Income from the Rest of the World. (15) (b) (i) Illustrate by means of a diagram the Circular Flow of Income for an open economy. (ii) Are transfer payments an injection into, or a leakage from the Circular Flow of Income? Explain your answer. (iii) Outline three current determinants of the level of consumption in the Irish economy. (35) (c) (i) Using the Keynesian multiplier process outline how a fiscal stimulus ( i.e. a government injection) would affect an economy's Aggregate Demand. (ii) Explain why the Irish government might find it difficult to implement such a Keynesian stimulus plan at the current time. (25) [75 marks] 6. (a) (i) Explain, using a numerical example, how banks create credit in an economy. (ii) Outline two factors which limit the ability of banks to create credit during recessionary times. (30) (b) Some central banks have responded to the global financial crisis by introducing the monetary policy measure of 'Quantitative Easing' (i.e. buying financial assets from financial institutions using new money it has created). (i) Outline two possible economic effects of this measure for an economy. The European Central Bank (ECB) reduced interest rates in 2012. (ii) Discuss two possible economic benefits of falling interest rates for the Irish economy. (20) (c) The monetary policy of the ECB aims to maintain the annual euro area inflation rate at a very low level. 1) State the rate of inflation in Ireland during 2013, as measured by the Consumer Price Index (CPI). (ii) Outline two uses of the CPI, other than as a measure of the rate of inflation. (iii) Discuss the possible limitations of the CPI as an accurate measure of changes in the cost of living in Ireland. (25) [75 marks]3. (a) State and explain four economic influences on an individual firm's demand for labour. (25) (b) Explain, with the aid of a labour market diagram in each case, how equilibrium wage rates are determined in: A free labour market; A labour market where a trade union has negotiated a minimum wage. (25) (c) Women in Ireland earn on average 17.1% less per hour than men, according to a study by the European Commission (Tackling the gender pay gap in the European Union, 2011). (i) Outline two possible reasons for the lower wage rates earned by women in the Irish economy. (ii) Outline one measure that could be taken to close the gender pay gap. (15) (d) Explain briefly Karl Marx's economic theory about the exploitation of labour in a capitalist system. (10) [75 marks] 4. (a) "The Exchequer deficit in December 2012 was (14.89bn' (Department of Finance, January 2013) (i) Discuss four possible economic consequences of the Government Current Budget Deficit for the Irish economy. (ii) Explain how a government budget could be used to reduce income inequalities in an economy. (30) (b) (i) State and explain two reasons why the government increased taxes on cigarettes and alcohol in its most recent budget. (ii) Outline three economic impacts for the Irish economy of an increase in Motor Tax. (30) (c) "The Public Capital Programme must make a further contribution to budgetary consolidation'. (Infrastructure and Capital Investment, 2012 - 2016) As an Advisor to the Minister for Public Expenditure and Reform, discuss two economic arguments in favour of a reduction in capital expenditure in the Budget. (15) [75 marks]{I} [hi it} {I} [bl {E} [i] Distinguish between the terms 'e'eetive demand' and 'derived demand'. {ii} Outline two possible exceptions to the Law of Demand. 25] The market for a brand of blue jeans is in equilibrium. Explain, with the aid of a separate diagram in each case. the effects which each of the following is most likely to have on the equilibrium position: {i} Due to the economic downturn there is a reduction in the real income of consumers. {ii} A. fall in the price of cotton. a key irqiut in the production of the blue jeans. [iii]: The blue jeans have recentlyr been endorsed by a popular sports star. [ill] A fall in the price of a consumer product has both a substitution effect and an income effect {i} Explain the underlined terms. [ii] If the price of an inferior product falls [all other things being equal] will more or less of the product be purchased? Explain your answer with reference to the substitution effect and the income effect. {20] [1'5 marksl Technology companies such as Apple and Samsuug are currently involved in legal disputes regarding patents on various aspects of their smartphones. When a company wins a patent dispute it may become the sole producer using the patented technology. {i} Explain three baniers to entry, other than patents. that can exist in business. {ii} Dutline two reasons why monopolies may not be in the public interest. {25} Explain, with the aid of a diagram, the long rttu equilibrium position of a monopoly rm. 25] The global market for toothpaste products can be described as an imperfectly competitive market. where rms engage in competitive advertising and bmnding. {i} Explain the term 'cnmpetitive advertising'- {ii} Outline, using an example, how advertising can he used to prevent small rms entering an industry. [iii] State and explain two possible disadvantages of advertising for the consumer. i251 [1'5 marksl