5N1350: Name Three Barriers To Free Trade And Define The Balance Of Trade: Applied Economics Assignment, BCFE, Ireland

Question 1: 

a) Name three barriers to free trade.

b) Define the Balance of Trade?

c) Define the Balance of Payments

d) What is the Law of Comparative Advantage

e) “Now that the UK has left the EU it will be good for British international trade.” Discuss this statement, stating whether you agree or disagree with it, and offer economics-based arguments to support your position.

Question 2:

a) Name any three characteristics of a free enterprise economic system.

b) State the Law of Demand.

c) Illustrate each of the following events using a supply and demand diagram for the butter market. Each diagram should clearly show the demand curve, supply curve and equilibrium point, as well as the Price and Quantity axes.

i) Show what would happen when the price of margarine rises

ii) A reputable medical journal publishes a report that butter is unhealthy.

d) What causes a movement along a supply curve?

e) List two reasons why a supply curve might shift to the right?

a) List the assumptions of a perfectly competitive market.

b) Give two examples of monopolist markets in Ireland.

c) Microsoft is a monopolist in the PC operating system market. Do you agree or disagree with this statement? Give three reasons to support your argument.

Question 4:

a) Calculate the national income of Ireland using the Income Method and by selecting from the following data: Total Rent – €30bn; Total Children’s Allowance Payments – €12bn; Total Wages – €150bn; Total Interest
Income – €20bn; Total Profits – €50bn; Total motorbike sales – €45 million.

b) Irish GDP is higher than Irish GNP. Which is a more accurate way to measure the wealth of the inhabitants of the country? Why is this true?

Question 5: 

a) When a country is entering a recession, why should a government increase spending?

b) List three sources of revenue for the government’s annual budget.

c) The Japanese government wishes the economy to grow more quickly, to create employment. Suggest three measures the government could take to stimulate the economy, with regards to the annual government budget; international exchange rates; and interest rates.

Question 6:

The following table tracks the costs of production incurred by a shoemaker producing shoes.

a) Complete the Total Costs and Marginal Costs columns for between 6 and 9 units.

b) Suggest one reason which could explain why average costs declined for the first four pairs of shoes?

c) At what production levels did the shoemaker experience diseconomies of scale?