1. What is the distinction as between macroeconomics and microeconomics?
Give examples of two (a) macroeconomic and (b) microeconomic issues.2. What are the major goals of economic policy?
3 What does the circular flow of income (and expenditure) demonstrate?
4. With respect to the Irish circular flow of income, are the following net injections, net withdrawals or neither? If there is
uncertainty explain.(a) firms are forced to take a cut in profits in order to give a pay rise.5. Distinguish as between the actual and the potential rate of growth in an economy.(b) Firms spend money on research
(c) The government increases personal tax allowances.
(d) The general public invests more money in building societies.
(e) Irish investors earn higher dividends on overseas investments.
(f) The government purchases US military aircraft.
(g) People draw on their savings to finance holidays abroad.
(h) People draw on their savings to finance holidays in Ireland
(i) The government runs a budget deficit (spends more than it receives in tax revenues) and finances it by borrowing from the general public
(j) The government runs a budget deficit and finances it by printing more money.
6 What are the main phases of the business cycle? At what point of the business cycle is the Irish economy at present? 7 For what reasons may one country experience a persistently faster rate of economic growth than another?
8. Distinguish clearly (i) current v constant measurements of national income (ii) GDP v GNP
9. National income has doubled (in real terms) in Ireland in the last 12 years. Does this mean that we are now all twice as well off?
10. Does it make sense to use national income statistics to compare living standards as between Ireland and - say - a poor Asian economy?
11. Would it be desirable to have a zero level of unemployment?
12. What would be the costs and benefits of increasing the rate of unemployment benefit?
13. Do any groups gain from inflation?