A2 Macroeconomics - Revision on the Balance of Paymentstutor2u
The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with other nations.
The current account measures the difference between money and credit going in and out of an economy (through exports, imports and income paid on assets both home and abroad)
A2 Macroeconomics - Revision on the Balance of Paymentstutor2u
The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with other nations.
The current account measures the difference between money and credit going in and out of an economy (through exports, imports and income paid on assets both home and abroad)
For many economists, the labour market is the most important market of all to study, analyse and evaluate. Like product markets for goods and services, labour markets can also fail. The main types of labour market failure are labour immobility including skills gaps, inequality, disincentives to be economically active, labour market discrimination and the effects of monopsony power of employers.
Normal laws of demand suggest that as prices increase demand decreases whilst firms attempt to supply more (with the opposite happening as prices decrease). The concept of elasticities asks the question ‘by how much does demand and supply change?’ Recent examination reports have made it clear that “price elasticity is an important topic and students should be prepared to apply it to the examination context as well as quote the formulas.” There is a lot to learn in this section – start with a good understanding of what elasticity it and how it is measured. Then consider why it matters for businesses to have a working knowledge / estimate of the coefficient of price elasticity of demand.
Which goods and services are best left to the market? And which are more efficiently and fairly provided as collective consumption goods by the state? This is at the heart of your revision of public goods. Central to your revision will be to understand why public goods may not be provided by the market. You can work this out by distinguishing between public and private goods and focusing on the ideas of rivalry and excludability in consumption. Students should understand the free rider and valuation problems – there are big debates in economics about the optimum size of the state. Rapid changes in technology are also changing the nature of what is and what is not a public good.
Browse the student workshop booklet for A Level Economics Strong Foundations - our intensive exam-skills and revision one-day workshop for all final year A Level Economics students. For more information about attending these superb workshops visit http://www.tutor2u.net/events/a-level-economics-revision-strong-foundations
A2 Macro: Balance of Payments and Exchange Ratestutor2u
All exam boards require candidates to have an understanding of the Balance of Payments and Exchange Rates. In this session we will focus on the causes of the UK’s Balance of Trade (aka Current Account) deficit, what we can do about it, and how an exchange rate depreciation
should affect an economy, and has affected the UK post financial crisis.
For many economists, the labour market is the most important market of all to study, analyse and evaluate. Like product markets for goods and services, labour markets can also fail. The main types of labour market failure are labour immobility including skills gaps, inequality, disincentives to be economically active, labour market discrimination and the effects of monopsony power of employers.
Normal laws of demand suggest that as prices increase demand decreases whilst firms attempt to supply more (with the opposite happening as prices decrease). The concept of elasticities asks the question ‘by how much does demand and supply change?’ Recent examination reports have made it clear that “price elasticity is an important topic and students should be prepared to apply it to the examination context as well as quote the formulas.” There is a lot to learn in this section – start with a good understanding of what elasticity it and how it is measured. Then consider why it matters for businesses to have a working knowledge / estimate of the coefficient of price elasticity of demand.
Which goods and services are best left to the market? And which are more efficiently and fairly provided as collective consumption goods by the state? This is at the heart of your revision of public goods. Central to your revision will be to understand why public goods may not be provided by the market. You can work this out by distinguishing between public and private goods and focusing on the ideas of rivalry and excludability in consumption. Students should understand the free rider and valuation problems – there are big debates in economics about the optimum size of the state. Rapid changes in technology are also changing the nature of what is and what is not a public good.
Browse the student workshop booklet for A Level Economics Strong Foundations - our intensive exam-skills and revision one-day workshop for all final year A Level Economics students. For more information about attending these superb workshops visit http://www.tutor2u.net/events/a-level-economics-revision-strong-foundations
A2 Macro: Balance of Payments and Exchange Ratestutor2u
All exam boards require candidates to have an understanding of the Balance of Payments and Exchange Rates. In this session we will focus on the causes of the UK’s Balance of Trade (aka Current Account) deficit, what we can do about it, and how an exchange rate depreciation
should affect an economy, and has affected the UK post financial crisis.
A revision presentation on the economics of producer and consumer subsidies as forms of government intervention in markets. There are a number of up to date examples highlighted together with an evaluation of the benefits and costs of subsidy payments. This is designed as a revision aid for unit 1 students taking their microeconomics papers.
Inward FDI flows to developing economies in 2014 reached their highest level at $681 billion with a 2 per cent rise. Developing economies thus extended their lead in global inflows. China became the world’s largest recipient of FDI. Among the top 10 FDI recipients in the world, 5 are developing economies. What are the advantages and disadvantages of foreign direct investment for developing countries?
These are slides from a revision presentation on aspects of Extract 4 in the OCR F585 June 2016 Global Economy paper. The main focus of the presentation is on sources of finance for developing countries and in particular the economics of the trend rise in remittances as external finance. To what extent is the net outward migration of younger skilled workers from many developing countries a barrier to their growth and development?
In these slides we discuss about Economic Growth & Business Cycle like GDP, Real GDP, Ways of measuring GDP, GNP, Aggregate Demand and Supply, Stages and Shape of Business Cycle, Growth / Expansion, Peak / Boom, Recession, Depression
Updated presentation on aspects of factors affecting economic growth including the middle income trap. Designed as a resource for A2 macro - unit 4 Development Economics
The following slides provide the background data and information that have informed the future trends identified under the economy and infrastructure theme. This presentation should be viewed alongside those for the other themes in order for the wider picture to be understood.
In this revision presentation we look at recent trends in UK trade union membership, consider how trade unions can affect both pay and employment and challenge the textbook view that union-negotiated pay increases inevitably have negative consequences for employment.
In this revision presentation we cover key examples of pure and quasi public goods and consider the arguments for and against an increase in government spending on public goods.
Poverty Reduction Policies in Low Income Countriestutor2u
This revision presentation covers some of the main causes of continued high levels of extreme poverty in low and middle income countries and considers a range of pro-poor government interventions designed to increase productivity and regular employment and waged income in formal labour markets.
You don’t need to produce a lot of evidence in your macroeconomics exams but knowing some basic and key facts and figures can make your answers stand out from the crowd! Here is a quickfire journey through twenty important economic numbers that won’t change before the exam – use them to support your answer and impress the examiner!
Microeconomics - Great Applied Examples for Examstutor2u
In this presentation, I have chosen loads of current examples that you might want to use as context in your microeconomics exams. We look at examples from different market structures, recent mergers and takeovers, the world's most valuable companies, the largest employer, unicorn business, de-mergers, the biggest initial public offerings (IPOs) and much else. Hopefully a useful video to go through to add some super examples into your revision notes.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This revision presentation looks at profit satisficing as an alternative objective for businesses. Why might firms satisfice? What are some of the possible consequences for economic welfare and efficiency?
In this short revision video, we look at the substantial productivity gap between the UK and many of the UK’s major competitor countries.
Paul Krugman, the Nobel Prize-winning economist said twenty fives years ago that “Productivity isn’t everything, but in the long run it is almost everything,”
In this presentation we consider the theory of wage-setting with a monopsony employer and the possible impact that a trade union might have on wages and employment. We also look at efficiency wage theory and mutual gains from pay bargaining between stakeholders.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
2. We add new resources / links / articles every day
to our Economics blogs
Follow this link for the AS Macro Blog on Tutor2u
www.tutor2u.net/blog/index.php/economics/categories/C59
3. What is Economic Growth?
• Growth is a long-term expansion of productive potential
• Short term growth is the annual % change in real national output
• Long term growth is shown by the increase in trend or potential
GDP and this is illustrated by an outward shift in a country’s long run
aggregate supply curve (LRAS)
4. Some of the Key Drivers of Economic Growth
Expanding the capital stock
Increasing the active
labour supply
Extracting and
selling natural
resources
Improving factor
productivity
Driving innovation
and enterprise
Economic
growth
“Structural reforms need to
be accelerated to improve
the UK economy’s skills
base, infrastructure, and
competitiveness.” (IMF,
June 2013)
5. Capital Investment and Economic Growth
Injection of demand for
capital goods industries
Bigger capital stock can lift
productivity / incomes
Economies of scale & better
competitiveness
Investment to sustain exportled growth
6. Get help on the AS
macroeconomics course
using twitter
#econ2
@tutor2u_econ
www.tutor2u.net
7. Economic Growth using AD-AS
General
Price Level
LAS1
LAS2
AS1
AS2
GPL1
AD1
Y1
Yp1
Y2 Yp2
AD2
Increase in
productive
potential is shown
by an outward shift
of long run
aggregate supply
(LAS1 to LAS2)
This means a higher
level of aggregate
demand can now
be met because of
an increase in
supply capacity
Real GDP
8. Economic Growth using PPF Diagram
Output of
capital
goods
PPF2
A rise in a nation’s
productive capacity
causes the PPF to
shift out and this
allows increased
supply both of
consumer and
capital goods.
PPF1
B
A
C
D
Consumer goods
9. Some of the Benefits of Economic Growth
Higher living standards – i.e. Real GNI per capita –
helps to lift people out of extreme poverty
Employment effects - growth stimulates jobs and
contributes to lower unemployment rates
Fiscal dividend – higher economic growth will raise
tax revenue and reduce government spending on
unemployment related welfare benefits
The accelerator effect - rising growth stimulates new
investment e.g. In low carbon technologies. Better
relative growth may attract foreign direct investment
10. Is there a Virtuous Circle of Economic Growth?
Higher
national
output
(GDP)
Rising
consumer
demand
(C)
Increased
wages /
real
incomes
Increased
capital
spending
(I)
Increased
output
per head
11. Benefits from Growth driven by Technological Change
A rise in
productivity
• Increase in GDP per
worker
• Lower unit costs
• Higher wages
• Higher profits
New
Goods
and
Services
• Lower real prices
• Consumer welfare
gains (lower prices)
• Improved living
standards
Improved
health
• Healthy life
expectancy
• Labour force expands
• Increased productivity
12. We add new resources / links / articles every day
to our Economics blogs
Follow this link for the AS Macro Blog on Tutor2u
www.tutor2u.net/blog/index.php/economics/categories/C59
13. Costs of Economic Growth
High rates of GDP growth can bring about undesirable economic
and social costs – much depends on the nature of growth
Risks of higher inflation
• Fast-growing demand can lead to demand-pull and
cost-push inflation – which threatens macro stability
Environmental effects
• More negative externalities such as pollution & waste
• Risk of unsustainable extraction of finite resources
Inequalities of income and wealth
• Rapid increases in real national income can lead to a
higher level of inequality and social division
14. Economic Growth in China
China has experienced rapid growth over the last twenty years
helping to lift hundreds of millions of people out of deep poverty
• Real GDP growth in China has been 9.6% per annum since 1979
• 60-70% has come from increasing capital and labour inputs –
there has been a vast increase in capital investment spending
• 30-40% has come from rising total factor productivity growth (i.e.
From increasing efficiency in the allocation of resources)
• Looking at the increases in per capita output:
1. 11-15% from improving human capital
2. 8-15% from improving allocative efficiency (e.g. moving from
state-owned businesses to private and from rural to urban)
3. 16-17% has come from the productivity-enhancing effects of
innovation – much of which has been imitation of ideas
15. Growth Challenges for China in the Years Ahead
Chinese economic growth is slowing down towards
seven per cent a year. A weaker pace of growth for
China will have important effects on the world
economy – for example on prices of commodities
Chinese Reform Challenges
1. More reliance on their
own domestic market and
less on exports
2. Raise consumption and
reduce inefficient savings
3. Grow the private sector
and reduce distortions
from state-owned sector
4. Increase the pace of
innovation as imitation
limits are reached
5. Continue opening the
Chinese economy into the
global economic /
financial system. This
includes Chinese firms
going global
16. Growth Limiters in Developing Nations
Infrastructure Gaps
Export Dependency
Macro Instability
Conflict and Corruption
Human Capital Problems
Insufficient Savings
Natural Capital Depleted
Rising Inequality
17. Deficiencies in Human Capital as Barrier to Growth
Investment in education and training to increase the quality of the
labour force and make people more flexible in the labour market
Investment increases the size
of the capital stock and helps
to achieve “capital deepening”
(capital per worker) but
businesses need skills and
experience to make best use of
new technology
In many countries there are
acute shortages of human
capital
Human capital weakness
limits impact of investment
Some countries lose some of
its skilled workforce to other
countries through a brain drain
18. Savings Gaps: Importance of Savings and Investment
How a savings gap can limit
economic growth
•
•
•
In many smaller lowincome countries, high
levels of extreme
poverty make it almost
impossible to generate
sufficient savings to
provide the funds
needed to fund capital
investment projects.
This increases reliance
on tied aid
Some countries borrow
heavily to fund capital
investment projects –
this can lead to a high
level of external debt
Increase
national
savings
Increased per
capita
incomes
Rise in real
GDP / GNI
Increase in
net
investment
Larger capital
stock
19. Dangers from Primary Product Export Dependency
Conflict - risk of political conflict and corruption and rising inequality
Volatility - vulnerability to changes in world prices which causes high
levels of macro volatility – i.e. Trade imbalances, GDP growth
Sustainability - danger of over-rapid extraction of finite resources
Currency appreciation - makes exports of a developing country’s
manufactured products more expensive in overseas markets
Higher inflation - which hurts the real incomes of poorer groups who do
not directly benefit from resource exploration and production
Weak linkages - Resource extraction tends to be capital-intensive in
nature and often does not create a significant rise in new jobs
20. High Inflation as a Growth Limiter for India
High inflation close to 10% is widely seen as a major factor holding
back the growth of the Indian economy. It creates major problems.
Competitiveness and Exports
• Harder for Indian businesses to sell their goods and services
abroad, risk of FDI moving to other countries
• Higher inflation expectations can cause currency weakness
Business Investment
• Uncertainty about future costs and prices
• Businesses are more reluctant to invest in new projects
• Pressure for wages to rise causing higher unit labour costs
Inequality and social unrest
• Regressive effects of rising food and energy prices
• Poor tend to hold a larger proportion of their savings in cash, they
are the worst hit by accelerating prices
21. Economic Growth and Inequality
In many countries, a period of fast economic growth can lead to a
widening of inequality of income and wealth
“Half of one’s income depends on the average income of
the country in which that person was born.”
“8% of humanity takes home 50% of global income; the top
1% alone takes home 15%.”
“The richest 300 people on earth have more wealth than
the poorest 3bn - almost half the world's population.”
“Shared prosperity is defined as “fostering income growth
of the bottom 40% of the population in every country”
(World Bank, 2013).
Branko Milanovic, World Bank
economist and expert on
trends in global inequality
“Global inequalities are a lot higher than those within any
country of the world, including Brazil or South Africa, the
Gini-coefficient of the world is estimated at 0.70, while the
one of a country like Brazil is below 0.60.”
22. Some of the Key Causes of Rising Inequality
Tax system is
now less
progressive
Cognitive
elites and
rising incomes
Root Causes Of
Monopoly
rent seeking –
power elites
Market
failures in
education &
housing
Regressive
effects of high
inflation
Patchy state
welfare
systems
Widening
urban-rural
income divide
23. Get help on the AS
macroeconomics course
using twitter
#econ2
@tutor2u_econ
www.tutor2u.net