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8. (a) Explain any three of the following terms: - Price inflation - Full employment - Emigration - Privatisation - Leaving Cert Economics - Question 8 - 2019
Question 8
8. (a) Explain any three of the following terms: - Price inflation - Full employment - Emigration - Privatisation. (b) The government is committed to improving the... show full transcript
Worked Solution & Example Answer:8. (a) Explain any three of the following terms: - Price inflation - Full employment - Emigration - Privatisation - Leaving Cert Economics - Question 8 - 2019
Step 1
Explain any three of the following terms: Price inflation
Answer
Price inflation refers to an increase in the general level of prices for goods and services over a specific period of time. This usually leads to a decrease in the purchasing power of money; as inflation rises, each unit of currency buys fewer goods and services. This can result in consumers needing to spend more to maintain their standard of living.
Step 2
Explain any three of the following terms: Full employment
Answer
Full employment occurs when all available labor resources are being used in the most efficient way possible. This means that all individuals who are willing and able to work at existing wage rates have employment. It is often considered to occur at an unemployment rate that is consistent with normal frictional unemployment.
Step 3
Explain any three of the following terms: Emigration
Answer
Emigration is the movement of Irish citizens to reside in another country, often in search of better economic opportunities or living conditions. This can lead to a decrease in the population and labor force in the home country, potentially affecting economic growth.
Step 4
Explain any three of the following terms: Privatisation
Answer
Privatisation is the process of transferring ownership of a business, enterprise, or public service from the government to private individuals or organizations. This can lead to increased efficiency and innovation as the private sector is usually driven by profit motives.
Step 5
Explain the term infrastructure.
Answer
Infrastructure refers to the large-scale physical capital projects that provide a foundation for economic activity. It includes essential services and facilities such as roads, bridges, ports, and broadband networks, which are necessary for the functioning of an economy.
Step 6
Discuss one economic advantage which the provision of broadband in rural areas may have on Households.
Answer
One economic advantage of providing broadband to households in rural areas is that it allows for more flexible working arrangements. Households can benefit from remote working opportunities, reducing the need for time-consuming commutes and potentially lowering transport costs. This flexibility can also enhance productivity and work-life balance.
Step 7
Discuss one economic advantage which the provision of broadband in rural areas may have on Firms.
Answer
For firms, access to broadband can facilitate improved communication and efficiency. They can conduct online transactions, connect with customers more effectively, and lower operational costs by utilizing online platforms for order processing and customer inquiries. This can enhance their competitive advantage in the market.
Step 8
State one example of infrastructure, other than broadband, which you think Ireland should invest in, and explain one reason for your choice.
Answer
One example of infrastructure that Ireland should invest in is public transport. With increasing population densities in urban areas, enhancing public transport systems can reduce congestion, decrease emissions, and improve accessibility for all citizens. Well-developed public transportation can encourage sustainable commuting habits while providing a reliable alternative to car travel.
Step 9
Outline two possible problems caused by the decline in economic activity in some small towns and rural areas of the country.
Answer
One problem is the decline in population, as economic opportunities diminish, leading to young people migrating to urban areas for better prospects. Another issue is the loss of local services, where businesses may close due to reduced customer bases, further contributing to a declining quality of life in these areas.
Step 10
State and explain two measures which could be introduced to help reverse this economic decline.
Answer
One measure is to improve infrastructure, such as roads and broadband access, which can attract new businesses and enhance connectivity. Another measure is to provide grants for community initiatives, promoting local enterprises that can stimulate economic activity and strengthen community ties.