The List Of Lists

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Factors of production
Land: natural resources
Capital: Man-made resources
Labour: Human skills and effort
Enterprise: Business know-how and risk

2. Allocation of resources questions

1. What to produce?
2. How to produce?
3. Who to produce for?
3. Types of government intervention
1. Provide useful and essential goods and services
2. Provide goods and services for people in the greatest need
3. Employ people in public sector organisations
4. Provide financial support to private sector firms to boost output and employment
5. Outlaw the production of harmful goods and dangerous activities
6. Outlaw business practices that restrict competition or mislead consumers
4. Problems with government intervention
1. High taxes on people and firms can distort market signals and reduce work incentives
2. Land regulations can increase production costs and reduce the profitability and supply
of G & S
3. Public sector organisations may be inefficient and produce poor quality G & S because
they do not have to make a profit
4. Some government spending may be for political or even personal gain
5. Factors that affect demand
1. Change in price
2. Change in consumers incomes
3. Change in taxes on incomes (disposable income)
4. Change in the price of complementary goods
5. Change in the price of substitutes
6. Changes in tastes, habits and fashions
7. Change in the population
8. Change in the level of advertising
9. Other factors: weather, interest rates, change in a law
6. Factors that affect supply
1. Change in price
2. Change in taxes and subsidies
3. Change in the cost of FOP
4. Change in the availability of FOP
5. Change in the price and profitability of other G & S
6. Technological advance
7. Change in business optimism and expectations
8. Global factors: weather, climate change, trade sanctions, wars, natural disasters &
political factors

7. Factors that affect PED

1. The number of substitutes
2. The period of time
3. The proportion of income spent on a commodity
4. Nature of commodity, i.e. if it is a luxury or a necessity
6. Level of price, i.e. the higher the price the more elastic the demand
7. Level of addictiveness
8. Factors that affect PES
1. Time: now = fixed, short run = price inelastic, long run = price elastic
2. The availability of resources
9. Characteristics of money
1. Acceptable
2. Divisible
3. Durable
4. Portable
5. Scare
10. Functions of money
1. Money is a medium of exchange
2. Money is a measure of value
3. Money is a store of value
4. Money is a means of deferred payment
11. Functions of a central bank
1. It issues notes and coins for the nations currency
2. It manages payments to and from the government
3. It manages the national debt
4. It supervises the banking system, regulating the conduct of banks
5. Holds banks deposits and transfers funds between them
6. It is the lender of last resort to the banking system
7. It manages the nations gold and foreign currency reserves
8. It operates the governments monetary policy
12. Different ways to pay people
1. Time rate
2. Piece rate
3. Performance-related pay
4. Fixed (monthly) salary
13. Factors that affect the demand for labour
1. Change in wage rate
2. Change in consumer demand for G & S
3. Change in productivity of labour
4. Change in price and productivity of capital
5. Change in non-wage employment costs
14. Factors that affect the supply of labour
1. Change in wage rate

2. Change in the net advantages of an occupation

3. Change in the provision and quality of education and training
4. Change in demographics
15. Labour market interventions
1. Minimum wage legislation
2. To protect the rights of employees and employers
3. Outlaw and regulate practices that may be used by powerful trade union and major
employers
4. To reduce unemployment
5. Outlaw unfair discrimination
16. Functions of trade unions
1. Negotiating improvements in non-wage benefits
2. Defending employees rights and jobs
3. Improving working conditions, such as better hours of work and better health and safety
policies
4. Improving pay and other benefits, including holiday entitlement, sick pay and pensions
5. Encouraging firms to increase workers participation in business decisions
6. Supporting members who have been dismissed or taking industrial action
7. Developing members skills through training and education
8. Providing social and recreational amenities to members
9. Influencing government policy and employment legislation
17. Types of trade unions
1. General unions
2. Industrial unions
3. Craft unions
4. Non-manual and professional associations
18. Forms of industrial action
1. Overtime ban
2. Work to rule
3. Go-slow
4. Strike
19. What determines how much we spend?
1. Disposable income
2. Wealth
3. Interest rates
4. Consumer confidence
20. Drivers of change in consumer spending
1. Rising real incomes
2. People are living longer
3. People have more leisure time
4. People are increasingly health conscious
5. Increasing concern for the environment
6. More females have joined the labour force
7. New technologies lead to new want

21. Why do our spending patterns differ?

1. Income
2. Gender
3. Wealth
4. Lifestyle
5. Age
6. Culture
7. Tastes
8. Family circumstances
22. Why do we save?
1. For future spending
2. To earn income from interest
3. In case our economic circumstances change
4. Increased opportunities to save
23. What determines how much we borrow?
1. Interest rates
2. Wealth
3. Consumer confidence
4. Availability of credit
24. Types of business organisation
1. Sole trader
2. Partnership
3. Private limited company
4. Public limited company
5. Multinational corporation
6. Cooperatives (worker cooperative and consumer cooperative)
7. Public sector organisations
25. Industrial sectors of an economy
1. Primary sector
2. Secondary sector
3. Tertiary sector
26. Strategies to improve productivity
1. Training employees to improve their skills
2. Rewarding increased productivity with performance-related pay
3. Increasing job satisfaction
4. Replacing old equipment and machinery with new technologies
5. Introducing new production processes to reduce waste, improve quality and speed up
production
6. The division of labour
7. Factor substitution
27. Advantages of the division of labour
1. More goods and services can be produced
2. Full use is made of employees abilities
3. Time is saved
4. It allows the use of machinery

28. Disadvantages of the division of labour

1. Work may become boring
2. Workers may feel alienated
3. Products become too standardized
29. Costs and revenues - things you need to know
1. Fixed costs
2. Variable costs
3. Total cost
4. Average cost
5. Revenue / Sales / Turnover
6. Profit / loss
7. Break-even
30. Measuring the size of firms
1. Number of employees
2. Organisation (departments, layers of mgt, divisions)
3. Capital employed
4. Market share
31. Types of integration
1. Horizontal
2. Forward vertical
3. Backwards vertical
4. Lateral (conglomerate)
32. Economies of scale
1. Purchasing economies
2. Marketing economies
3. Financial economies
4. Technical economies
5. Risk-bearing economies
6. Managerial economies
33. External economies of scale
1. Access to a skilled workforce
2. Ancillary firms
3. Joint marketing benefits
4. Shared infrastructure
34. Why do some firms remain small?
1. The size of their market is small
2. Access to capital is limited
3. New technologies has reduced the scale of production needed
4. Some business owners may simply choose to stay small
35. Why do firms compete?
1. Increase their customer base
2. Increase their sales
3. Expand their market share

4. Achieve product superiority

5. Enhance company and product image
6. Increase profits
36. Pricing strategies
1. Price skimming
2. Penetration pricing
3. Destruction pricing (Predatory pricing)
4. Price leadership
5. Cost-based pricing
37. Factors that affect market structure
1. Number of competing firms
2. Degree of competition between them
3. Extent of their product differentiation
4. Ease with which new firms enter the market
38. Problems with monopolies
1. Restrict market supply to force up market price
2. Restrict competition and consumer choice
3. Cut product quality to save costs
4. X-inefficiency
5. Need for regulation
39. Competition - natural barriers to entry
1. Economies of scale
2. Capital size
3. Historical reasons
4. Legal reasons
40. Competition - artificial barriers to entry
1. Restrictions on supplies
2. Predatory pricing
3. Exclusive dealing
4. Full line forcing
41. Not all monopolies are bad
1. If it is a more efficient producer with lower costs than smaller firms
2. If it faces competition from firms overseas
3. If the market is contestable
4. If it invests its profits in new product developments
42. Why do governments spend money?
1. To provide goods and services that are in the public economic interest
2. Invest in national infrastructure
3. Support agriculture and key industries to provide jobs and output
4. Manage the economy
5. Reduce inequalities in income
43. What makes up aggregate demand
1. Consumer expenditure on goods and services

2. Investment expenditure by firms on capital

3. Public expenditure on capital and current items
4. Exports or expenditure by overseas residents on goods and services produced in the
macroeconomy
44. Four main macroeconomic objectives
1. Low and stable price inflation
2. High and stable employment
3. Economic growth in national output
4. A stable balance of international trade and payments
45. Demand-side policy instruments
1. Total public expenditure
2. The overall level of taxation
3. The rate of interest
46. Supply-side policy instruments
1. Selective tax incentives
2. Selective subsides
3. Improving education and training
4. Labour market reforms
5. Competition policy
6. Removing trade barriers
7. Privatization
8. Regulation and deregulation
47. Problems with fiscal policy
1. Fiscal policy is cumbersome to use
2. Increases in public expenditure crowds out private spending
3. Increasing taxes on incomes and profits can reduce incentives to work and enterprise
4. An expansionary fiscal policy creates expectations of inflation
48. Financing public expenditure
1. Borrowing from the private sector
2. Rents from publicly owned buildings and land
3. Admission charges from public museums and monuments etc
4. Revenues from the sale of some public services
5. Proceeds from the sale (privatisation) of government-owned industries and other
publicly owned assets
6. Interest charges on government loans to private sector and overseas governments
7. Taxes on incomes, wealth and expenditure
49. How taxes are used
1. To raise revenue
2. To manage the macroeconomy
3. To reduce income inequality after tax
4. To discourage spending on imports
5. To discourage the consumption and production of harmful products
6. To protect the environment
50. What is a good tax?

1. Equity
2. Non-distortionary
3. Certainty
4. Convenience
5. Simplicity
6. Administrative efficiency
51. Direct taxes
1. Personal income tax
2. Corporation (or profits) tax
3. Capital gains tax
4. Wealth (e.g. inheritance and property) tax
52. Indirect taxes
1. Value added tax (VAT) or goods and services tax (GST)
2. Excise duties
3. Import tariffs
4. User charges
53. Advantages of indirect taxes
1. They are cost effective
2. They expand the tax base
3. They can be used to target specific products and activities
4. They are flexible
54. Disadvantages of indirect taxes
1. They are inflationary
2. They are regressive
3. Revenues are less certain and predictable
4. They can encourage tax evasion
55. How to measure inflation (CPI)
1. Survey the average families in an economy for what they purchase
2. Assign a weighting to rank how important the spending is
3. Calculate the weighted average for each group of G & S
4. Total weighted average, this is the value of the basket of goods
5. Using 0 for the base year, calculate the CPI
56. Uses of price indices
1. As an economic indicator
2. As a price deflator
3. For indexation
57. What causes inflation?
1. A monetary rule
2. Demand-pull inflation
3. Cost-push inflation
4. Imported inflation
58. The costs of inflation
1. Inflation erodes the value or purchasing power of money

2. It increases the costs of production and reduces profit margins

3. It reduces the price competitiveness of exports
4. It creates economic uncertainty
59. Types of unemployment
1. Frictional unemployment
2. Seasonal unemployment
3. Cyclical unemployment
4. Structural unemployment
60. Imperfections in the labour market
1. Powerful trade unions may force up wages
2. Unemployment benefits may reduce the incentive to work
3. Other employment costs can reduce the demand for labour
4. A lack of information can prevent people from finding jobs
5. Minimum wage legislation may reduce labour demand
6. Labour immobility prevents workers from finding new jobs
61. How to measure economic activity
1. Output method
2. Income method
3. Expenditure method
62. How economies grow
1. The discovery of more natural resources
2. Investment in new capital and infrastructure
3. Technical progress
4. Increasing the amount and quality of human resources
5. Reallocating resources
63. Benefits of economic growth
1. More goods and services, more wants satisfied
2. Increased employment opportunities and income
3. Increased sales, profits and business opportunities
4. Low price inflation if output growth keeps pace with demand
5. Increasing tax revenue for a government to improve public services and infrastructure
6. Improved living standards
64. Problems with economic growth
1. Technical progress may replace labour with machines
2. Scarce resources are used up at a faster rate
3. Increasing pollution and damage to natural environment
4. People are not necessarily better off if growth is achieved, i.e. by producing more
weapons, cigarettes or coal-fired power stations
65. Reasons for low economic development
1. An over-dependence on agriculture to provide jobs and incomes
2. Domination of international trade by developed nations
3. Lack of capital
4. Insufficient investment in education, skills and health care
5. Low levels of investment in infrastructure

6. Lack of an efficient production and distribution system for goods and services
7. High population growth
8. Other factors: unstable and corrupt governments and wars
66. Development indicators
1. Gross domestic product (GDP) per capita
2. Population on less than $1 per day
3. Life expectancy at birth
4. Adult literacy rate
5. Access to safe water supplies and sanitation
6. Ownership of consumer goods
7. Proportion of workers in agriculture compared to industry and services
67. Poverty reduction measures
1. Reduce unemployment
2. Progressive taxation
3. Welfare services/ income support
4. Low-cost homes
5. Minimum wage laws
6. Quantity and quality of education
7. Inward investment
68. Types of overseas aid
1. Food aid
2. Financial aid
3. Technological aid
4. Loans
5. Debt relief
69. Reasons for different birth rates in different countries
1. Living standards
2. Contraception
3. Custom and religion
4. Changes in female employment
5. Marriage
70. Reasons for different death rates in different countries
1. Living standards
2. Medical advances and health care
3. Natural disasters and wars
71. The gains from free trade
1. International trade allows countries to benefit from specialization
2. International trade increases consumer choice
3. International trade increases competition and efficiency
4. International trade creates additional business opportunities
5. Free trade enables firms to benefit from the best workforces, resources and technologies
from anywhere in the world
6. International trade increases economic interdependency and therefore reduces the
potential for conflict

72. The disadvantages of uncontrolled trade

1. International trade with low-cost economies is threatening jobs in many developed
economies and reducing opportunities for growth in less-developed economies
2. International trade is contributing to rapid resource depletion and climate change
3. International trade may increase the exploitation of workers and the environment
4. International trade may be increasing the gap between rich and poor countries
73. Barriers to trade
1. Tariffs
2. Subsidies
3. Quotas
4. Embargo
5. Excessive quality standards and bureaucracy
74. Arguments for trade barriers
1. To protect infant industries
2. To protect sunset industries
3. To protect strategic industries
4. To protect domestic firms from dumping
5. To limit over-specialization
6. To correct a trade imbalance
7. Because other countries use trade barriers
75. Arguments against trade barriers
1. They restrict consumer choice
2. They restrict new revenue and employment opportunities
3. They protect inefficient domestic firms
4. Other countries may retaliate
76. Reasons for currency fluctuations on foreign exchange market
1. Changes in the current account balance
2. Inflation
3. Changes in interest rates
4. Speculation
77. Correcting a trade deficit
1. Do nothing, because a floating exchange rate should correct it
2. Use contractionary fiscal policy
3. Raise interest rates
4. Introduce trade barriers
78. Correcting a trade surplus
1. Do nothing, because a floating exchange rate should correct it
2. Use expansionary fiscal policy
3. Lower interest rates
4. Remove any trade barriers