Energy costs (e.g. electricity) increased significantly in Ireland during 2006.
Outline TWO economic reasons for the increase and TWO economic consequences of this ... show full transcript
Worked Solution & Example Answer:Energy costs (e.g - Leaving Cert Economics - Question 9 - 2007
Step 1
Economic Reason (i)
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One economic reason for the increase in energy costs in 2006 is the Increase in international oil prices. These price hikes were primarily due to political instability in oil-producing regions and supply shortages, which led to higher costs for energy production across the board.
Step 2
Economic Reason (ii)
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Another reason is the Increase in wage costs within the industry. As labor costs rose, energy suppliers passed these increases onto consumers, contributing to the overall rise in energy costs.
Step 3
Economic Consequence (i)
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A consequence of the increase in energy costs is the Greater awareness among consumers regarding the efficient use of energy resources. This has led to an increased emphasis on producing energy-efficient appliances and practices, ultimately benefiting the environment.
Step 4
Economic Consequence (ii)
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Another consequence is Inflationary pressures which can lead to a decrease in the standard of living. As people face higher energy bills, their disposable income shrinks, impacting overall economic well-being.
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