solve in details

7. (a) Outline, using appropriate figures, how the Irish economy performed in the past twelve months in each of the following areas: (1) price inflation (ii) the national debt (iii) economic 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]5. (a) (i) Explain how it is possible for banks to create credit. (ii) State and explain THREE limitations on the amount of credit which banks can create. (30 marks) (b) Explain how an increase in the use of 'plastic money' (credit cards, etc.) by customers affects the ability of banks to create credit. (15 marks) (c) The main objective of the European Central Bank's monetary policy is to control inflation. (i) Explain the underlined terms. (ii) The ECB reduced interest rates in 2001. Discuss the effects of this reduction in interest rates on the Irish economy. (30 marks) [75 marks] 6. (a) (i) State the Law of Comparative Advantage. (ii) State and explain the assumptions underlying this law. (30 marks) (b) The table below illustrates the Law of Comparative Advantage. Country Commodity (Hourly Production per Person) Food Machinery Country X 5 tonnes 10 units Country Y 20 tonnes 30 units Total Output 25 tonnes 40 units (i) Use the above example to show how both countries could benefit from international trade. (ii) Calculate the terms of trade for both commodities. (20 marks) (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]