👉 Amritsar Call Girls 👉📞 8725944379 👉📞 Just📲 Call Ruhi Call Girl Near Me Amri...
Limitations of gdp
1.
2. 1. Unsustainable
practises
An environmentally damaging practice that can diminish a
natural resource thus negating the continued use or
availability of that resource.
E.G 1.
1. China fishing industry- One of the largest fishing industries
in the world.
2. 2005 – Aquaculture harvest was 32.4million tonnes.
3. Exports valued at $7.7billion US.
4. UN FAO – estimated 70% of the fish population is fully used
or in crisis.
3. E.G 2.
1. Unsustainable
practises
Fossil fuel consumption
1. Limited supply
2. Mass consumption of cheap fossil fuels
3. Saudi Arabia – worlds largest oil producer approaching
end of production
4. Replenishment rate of fossil fuels takes millions of years
5. 2. Bad composition of
GDP
The sum of all goods and services which are produced by
a country in a given period of time.
Bad composition of GDP – how diversified the production
within an economy is.
E.G 1.
1. Saudi Arabia 2009: Agriculture – 3.2%
Services – 36.4%
Industry – 60.4%
2. Petroleum & petroleum products made up 90% of total
exports.
6. 2. Bad composition of
GDP
E.G 2.
1. Mozambique 2007: Industry – 8%
Services – 15%
Agriculture – 77%
2. Main exports include: Cotton, sugar, cashews
and citrus.
7. Non-production
transactions
Transactions which producers provide to people
for free or at economically insignificant prices.
E.G 1.
1. Second hand sales – old equipment, vehicles,
un-used stock.
E.g. Bus van = €25,000 – annual depreciation 20%
Value after 3 years = €10,000
Sold for €9,500
8.
E.G 2.
1. Transfer payment – social welfare,
unemployment benefits, pension.
2. 2012 – 1.469million people in receipt of a weekly
welfare payment.
3. 2012 expenditure - €20.774billion
4. Decrease of 0.9% over 2011
5. Not counted as it is money transferred rather
than paid for products or services.
9. Income inequality
The unequal distribution of household or individual
income across the various participants in an
economy.
1. E.g. 70% of the total income is controlled by 20%
of the population.
2. Overall wealth of a country is primarily
determined by the larger income of the
minority of the population.
10.
E.G 1.
1. Gini coefficent - measures degree of inequality
in distribution of income in a country.
2. 0=perfect equality, 1=perfect inequality
3. 2011 EU average = 30.7
4. 2011 – Ireland rank 20 – 31.1
5. Norway rank 1 – 22.9
11.
E.G 2.
Saudi Arabia
1. Oil industry 2012 - $300billion
2. Population – 28million
3. ¼ of population on or below poverty line
4. Estimated 2-4million natives live on less than
$530 a month - $17 a day
5. King Abdullah's personal fortune at $18bn
12. Population
China
2012
1. Population – 1.351 billion
2. GDP – 8.227trillion (USD)
3. Per capita – 6,091.01
Switzerland
2012
1. Population – 7.997million
2. GDP – 632.2billion (USD)
3. Per capita – 79,052.34
13. 6. Black economy
Underground economy – any economic activity
that takes place outside of government control.
Annual cost Ireland - €6.1billion
E.G 1.
1. Construction industry – cash only/cash in-hand,
no VAT
2. Legitimate contractors- €250m to €500m back
into the industry
14. 6. Black economy
E.G 2.
1. Tobacco industry - €3 million per week from
illegal tobacco.
2. 2011- 15% of smokers consuming illegal
cigarettes
3. 2012- 95.6 million cigarettes seized valued at
€43.3 million
15. B. ii)Economic effects
of black market in
Ireland
Unemployment
1. Ireland 2013 – 13.3%
2. 2012- 1.469million people in receipt
3. 2012 social welfare - €20.774billion
4. Budget 2014 – Job seekers allowance 14 Jan:
- No children, aged 18-24 = €100 per week
-No children, aged 25 = €144 per week
-Aged 26 increase = €188 per week
16. B. ii)Economic effects
of black market in
Ireland
5. High unemployment benefits – beneficial to
remain unemployed and continue to claim
benefits, rather than work for a lower wage.
6. Nixers- people working off the books, cash in
hand, continue to claim unemployment
benefits.
17. B. ii)Economic effects
of black market in
Ireland
Lost tax revenue
Cigarette smuggling
1. Annual government loss - €937million lost tax
revenue.
2. Retailers - €537million, job losses.
3. 32.8% discarded cigarette packs are nondomestic.
4. Ireland – largest smoker of smuggled cigarettes
in entire EU 2012
18. B. ii)Economic effects
of black market in
Ireland
5. Ireland 2013 – most expensive price per pack of
20 cigarettes in Europe.
6. Retail price - €9.50 per pack
7. Collected tax - €7.72
8. Illegal cigarettes purchased - €0.50c per pack
9. Selling price - €4.50
10. Difference - €5.00
