Unit 4: Developments in the Global Economy

Increase in trade as a proportion of GDP. globalisation.

Use a - increase in trade as a proportion of gdp. globalisation to connect the rule to the data and decision in the question.

This matters because a - increase in trade as a proportion of gdp. globalisation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - increase in trade as a proportion of gdp. globalisation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Increase in trade as a proportion of GDP. globalisation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Increase in importance of transnational companies (TNCs) and foreign direct investment (FDI).

Use b - increase in importance of transnational companies (tncs) and foreign direct investment to connect the rule to the data and decision in the question.

This matters because b - increase in importance of transnational companies (tncs) and foreign direct investment determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - increase in importance of transnational companies (tncs) and foreign direct investment to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Increase in importance of transnational companies (TNCs) and foreign direct investment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Increase in migration.

Use c - increase in migration to connect the rule to the data and decision in the question.

This matters because c - increase in migration determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - increase in migration to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Increase in migration is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors contributing to increased globalisation in the last globalisation 50 years:; trade liberalisation; increased number and size of trading blocs; political change (breakdown of the Soviet system and opening up of China); reduced cost of transport and communications; increased significance of TNCs.

Use a - factors contributing to increased globalisation in the last globalisation 50 years: • to connect the rule to the data and decision in the question.

This matters because a - factors contributing to increased globalisation in the last globalisation 50 years: • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors contributing to increased globalisation in the last globalisation 50 years: • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors contributing to increased globalisation in the last globalisation 50 years: • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

FDI by TNCs:; reasons for FDI; the impact of FDI on recipient countries.

Use b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries to connect the rule to the data and decision in the question.

This matters because b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - fdi by tncs: • reasons for fdi • the impact of fdi on recipient countries to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - FDI by TNCs: • reasons for FDI • the impact of FDI on recipient countries is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible benefits of globalisation: globalisation; increased economic growth; increased tax revenue; economies of scale; lower prices and higher consumer surplus; more choice; higher living standards.

Use a - possible benefits of globalisation: globalisation • increased economic growth • to connect the rule to the data and decision in the question.

This matters because a - possible benefits of globalisation: globalisation • increased economic growth • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible benefits of globalisation: globalisation • increased economic growth • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible benefits of globalisation: globalisation • increased economic growth • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible costs of globalisation:; displaced workers; exploitation of workers; environmental impact of increased trade; loss of tax revenue from transfer pricing; increased income inequality within countries; the influence of TNCs on domestic economic policy.

Use b - possible costs of globalisation: • displaced workers • exploitation of workers • to connect the rule to the data and decision in the question.

This matters because b - possible costs of globalisation: • displaced workers • exploitation of workers • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - possible costs of globalisation: • displaced workers • exploitation of workers • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Possible costs of globalisation: • displaced workers • exploitation of workers • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Benefits and costs of specialisation and trade in the international comparative context. advantage.

Use a - benefits and costs of specialisation and trade in the international comparative to connect the rule to the data and decision in the question.

This matters because a - benefits and costs of specialisation and trade in the international comparative determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - benefits and costs of specialisation and trade in the international comparative to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Benefits and costs of specialisation and trade in the international comparative is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The theory of comparative advantage:; the distinction between absolute and comparative advantage; assumptions underlying the theory of comparative advantage; limitations of the theory of comparative advantage.

Use b - theory of comparative advantage: • the distinction between absolute and comparative to connect the rule to the data and decision in the question.

This matters because b - theory of comparative advantage: • the distinction between absolute and comparative determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - theory of comparative advantage: • the distinction between absolute and comparative to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - theory of comparative advantage: • the distinction between absolute and comparative is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing patterns of trade between countries and causes volume of world of changes in these patterns: trade; impact of emerging economies; changes in comparative advantage; growth in trading blocs and bilateral trading agreements; changes in relative exchange rates; changes in protectionism between countries.

Use a - factors influencing patterns of trade between countries and causes volume of world of to connect the rule to the data and decision in the question.

This matters because a - factors influencing patterns of trade between countries and causes volume of world of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors influencing patterns of trade between countries and causes volume of world of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors influencing patterns of trade between countries and causes volume of world of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Changes in trade flows between countries, and the reasons for these changes.

Use b - changes in trade flows between countries, and the reasons for these changes to connect the rule to the data and decision in the question.

This matters because b - changes in trade flows between countries, and the reasons for these changes determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - changes in trade flows between countries, and the reasons for these changes to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Changes in trade flows between countries, and the reasons for these changes is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Understanding and calculation of the terms of trade.

Use a - understanding and calculation of the terms of trade to connect the rule to the data and decision in the question.

This matters because a - understanding and calculation of the terms of trade determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - understanding and calculation of the terms of trade to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Understanding and calculation of the terms of trade is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing a country's terms of trade, changes in:; relative inflation rates; relative productivity rates; relative labour costs; the exchange rate; the prices of imports and exports.

Use b - factors influencing a country's terms of trade, changes in: • relative inflation rates to connect the rule to the data and decision in the question.

This matters because b - factors influencing a country's terms of trade, changes in: • relative inflation rates determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors influencing a country's terms of trade, changes in: • relative inflation rates to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors influencing a country's terms of trade, changes in: • relative inflation rates is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of changes in a country's terms of trade on:; export revenues; living standards; balance of trade.

Use c - impact of changes in a country's terms of trade on: • export revenues • living to connect the rule to the data and decision in the question.

This matters because c - impact of changes in a country's terms of trade on: • export revenues • living determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - impact of changes in a country's terms of trade on: • export revenues • living to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - impact of changes in a country's terms of trade on: • export revenues • living is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of the World Trade Organization (WTO) in trade liberalisation and liberalisation. trading blocs.

Use a - role of the world trade organization (wto) in trade liberalisation and liberalisation. to connect the rule to the data and decision in the question.

This matters because a - role of the world trade organization (wto) in trade liberalisation and liberalisation. determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - role of the world trade organization (wto) in trade liberalisation and liberalisation. to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - role of the World Trade Organization (WTO) in trade liberalisation and liberalisation. is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of trading blocs:; free-trade areas; customs unions; common markets; economic and monetary unions.

Use b - types of trading blocs: • free-trade areas • customs unions • common markets • economic to connect the rule to the data and decision in the question.

This matters because b - types of trading blocs: • free-trade areas • customs unions • common markets • economic determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of trading blocs: • free-trade areas • customs unions • common markets • economic to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of trading blocs: • free-trade areas • customs unions • common markets • economic is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of membership of a trading bloc:; trade creation; trade diversion; costs and prices; economies of scale; transaction costs; movement of factors of production.

Use c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to connect the rule to the data and decision in the question.

This matters because c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Costs and benefits of membership of a trading bloc: • trade creation • trade diversion is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible conflicts between trading blocs and the WTO.

Use d - possible conflicts between trading blocs and the wto to connect the rule to the data and decision in the question.

This matters because d - possible conflicts between trading blocs and the wto determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - possible conflicts between trading blocs and the wto to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Possible conflicts between trading blocs and the WTO is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Reasons for restrictions on free trade: free trade; to protect infant and geriatric industries; to protect domestic industries and employment; to protect national security; to prevent dumping; to correct a deficit on the current account of the balance of payments; to raise revenue.

Use a - reasons for restrictions on free trade: free trade • to protect infant and geriatric to connect the rule to the data and decision in the question.

This matters because a - reasons for restrictions on free trade: free trade • to protect infant and geriatric determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - reasons for restrictions on free trade: free trade • to protect infant and geriatric to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Reasons for restrictions on free trade: free trade • to protect infant and geriatric is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of restrictions on free trade:; tariffs; quotas; non-tariff barriers; subsidies to domestic producers.

Use b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • to connect the rule to the data and decision in the question.

This matters because b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Impact of protectionist policies on:; consumers; producers; governments; living standards; equality.

Use c - impact of protectionist policies on: • consumers • producers • governments • living to connect the rule to the data and decision in the question.

This matters because c - impact of protectionist policies on: • consumers • producers • governments • living determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - impact of protectionist policies on: • consumers • producers • governments • living to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Impact of protectionist policies on: • consumers • producers • governments • living is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Components of the balance of payments: payments; the current account; the capital and financial accounts.

Use a - components of the balance of payments: payments • the current account • the capital and to connect the rule to the data and decision in the question.

This matters because a - components of the balance of payments: payments • the current account • the capital and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - components of the balance of payments: payments • the current account • the capital and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Components of the balance of payments: payments • the current account • the capital and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of deficits and surpluses on the current account.

Use b - causes of deficits and surpluses on the current account to connect the rule to the data and decision in the question.

This matters because b - causes of deficits and surpluses on the current account determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes of deficits and surpluses on the current account to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Causes of deficits and surpluses on the current account is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to reduce a country's imbalance on the current account.

Use c - measures to reduce a country's imbalance on the current account to connect the rule to the data and decision in the question.

This matters because c - measures to reduce a country's imbalance on the current account determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - measures to reduce a country's imbalance on the current account to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Measures to reduce a country's imbalance on the current account is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of global trade imbalances.

Use d - significance of global trade imbalances to connect the rule to the data and decision in the question.

This matters because d - significance of global trade imbalances determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of global trade imbalances to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of global trade imbalances is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between fixed, managed and floating exchange rates.

Use a - distinction between fixed, managed and floating exchange rates to connect the rule to the data and decision in the question.

This matters because a - distinction between fixed, managed and floating exchange rates determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between fixed, managed and floating exchange rates to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between fixed, managed and floating exchange rates is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Government intervention in currency markets through:; foreign currency transactions; the use of interest rates; quantitative easing.

Use b - government intervention in currency markets through: • foreign currency transactions • to connect the rule to the data and decision in the question.

This matters because b - government intervention in currency markets through: • foreign currency transactions • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - government intervention in currency markets through: • foreign currency transactions • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Government intervention in currency markets through: • foreign currency transactions • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing floating exchange rates:; relative interest rates; relative inflation rates (purchasing power parity theory); current account of the balance of payments; strength of the economy; capital flight; expectations and speculation; global factors, e.g. falls in commodity prices.

Use c - factors influencing floating exchange rates: • relative interest rates • relative to connect the rule to the data and decision in the question.

This matters because c - factors influencing floating exchange rates: • relative interest rates • relative determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - factors influencing floating exchange rates: • relative interest rates • relative to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Factors influencing floating exchange rates: • relative interest rates • relative is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between revaluation and appreciation of a currency.

Use d - distinction between revaluation and appreciation of a currency to connect the rule to the data and decision in the question.

This matters because d - distinction between revaluation and appreciation of a currency determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - distinction between revaluation and appreciation of a currency to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - distinction between revaluation and appreciation of a currency is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between devaluation and depreciation of a currency.

Use e - distinction between devaluation and depreciation of a currency to connect the rule to the data and decision in the question.

This matters because e - distinction between devaluation and depreciation of a currency determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - distinction between devaluation and depreciation of a currency to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - distinction between devaluation and depreciation of a currency is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of changes in exchange rates on:; the current account of the balance of payments (with reference to Marshall-Lerner condition and to the J-curve effect); the capital and financial accounts of the balance of payments; economic growth; employment and unemployment; rate of inflation; FDI flows.

Use f - impact of changes in exchange rates on: • the current account of the balance of to connect the rule to the data and decision in the question.

This matters because f - impact of changes in exchange rates on: • the current account of the balance of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - impact of changes in exchange rates on: • the current account of the balance of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - impact of changes in exchange rates on: • the current account of the balance of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Competitive depreciations/devaluations and their consequences.

Use g - competitive depreciations/devaluations and their consequences to connect the rule to the data and decision in the question.

This matters because g - competitive depreciations/devaluations and their consequences determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - competitive depreciations/devaluations and their consequences to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Competitive depreciations/devaluations and their consequences is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures of international competitiveness: competitiveness; relative productivity rates; relative unit labour costs; relative export prices.

Use a - measures of international competitiveness: competitiveness • relative productivity to connect the rule to the data and decision in the question.

This matters because a - measures of international competitiveness: competitiveness • relative productivity determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - measures of international competitiveness: competitiveness • relative productivity to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Measures of international competitiveness: competitiveness • relative productivity is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing international competitiveness:; productivity; quality of human capital; exchange rate; wage and non-wage costs; regulations; quality of infrastructure; non-price factors.

Use b - factors influencing international competitiveness: • productivity • quality of human to connect the rule to the data and decision in the question.

This matters because b - factors influencing international competitiveness: • productivity • quality of human determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors influencing international competitiveness: • productivity • quality of human to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors influencing international competitiveness: • productivity • quality of human is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to increase international competitiveness:; policies to improve education and training; investment incentives; privatisation and deregulation; measures to reduce the exchange rate of the currency; trade liberalisation.

Use c - measures to increase international competitiveness: • policies to improve education and to connect the rule to the data and decision in the question.

This matters because c - measures to increase international competitiveness: • policies to improve education and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - measures to increase international competitiveness: • policies to improve education and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Measures to increase international competitiveness: • policies to improve education and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of international competitiveness:; advantages for an economy of being internationally competitive; problems for an economy of being internationally uncompetitive.

Use d - significance of international competitiveness: • advantages for an economy of being to connect the rule to the data and decision in the question.

This matters because d - significance of international competitiveness: • advantages for an economy of being determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of international competitiveness: • advantages for an economy of being to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of international competitiveness: • advantages for an economy of being is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between absolute and relative poverty.

Use a - distinction between absolute and relative poverty to connect the rule to the data and decision in the question.

This matters because a - distinction between absolute and relative poverty determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between absolute and relative poverty to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between absolute and relative poverty is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures of absolute and relative poverty.

Use b - measures of absolute and relative poverty to connect the rule to the data and decision in the question.

This matters because b - measures of absolute and relative poverty determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - measures of absolute and relative poverty to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Measures of absolute and relative poverty is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of changes in absolute and relative poverty:; economic growth; education and training; welfare benefits; changes in tax structure; structural changes in the economy; aid; civil wars and conflict.

Use c - causes of changes in absolute and relative poverty: • economic growth • education and to connect the rule to the data and decision in the question.

This matters because c - causes of changes in absolute and relative poverty: • economic growth • education and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - causes of changes in absolute and relative poverty: • economic growth • education and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Causes of changes in absolute and relative poverty: • economic growth • education and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between wealth inequality and income inequality.

Use a - distinction between wealth inequality and income inequality to connect the rule to the data and decision in the question.

This matters because a - distinction between wealth inequality and income inequality determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between wealth inequality and income inequality to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between wealth inequality and income inequality is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measurements of inequality:; the Lorenz curve; the Gini coefficient.

Use b - measurements of inequality: • the lorenz curve • the gini coefficient to connect the rule to the data and decision in the question.

This matters because b - measurements of inequality: • the lorenz curve • the gini coefficient determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - measurements of inequality: • the lorenz curve • the gini coefficient to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Measurements of inequality: • the Lorenz curve • the Gini coefficient is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of inequality in income and wealth within countries and between countries.

Use c - causes of inequality in income and wealth within countries and between countries to connect the rule to the data and decision in the question.

This matters because c - causes of inequality in income and wealth within countries and between countries determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - causes of inequality in income and wealth within countries and between countries to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Causes of inequality in income and wealth within countries and between countries is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of inequality on:; enterprise; incentives; savings; education; migration; life expectancy.

Use d - impact of inequality on: • enterprise • incentives • savings • education • migration • to connect the rule to the data and decision in the question.

This matters because d - impact of inequality on: • enterprise • incentives • savings • education • migration • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - impact of inequality on: • enterprise • incentives • savings • education • migration • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - impact of inequality on: • enterprise • incentives • savings • education • migration • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of economic change and development on inequality.

Use e - impact of economic change and development on inequality to connect the rule to the data and decision in the question.

This matters because e - impact of economic change and development on inequality determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - impact of economic change and development on inequality to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - impact of economic change and development on inequality is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of the free market economy (capitalism) for inequality.

Use f - significance of the free market economy (capitalism) for inequality to connect the rule to the data and decision in the question.

This matters because f - significance of the free market economy (capitalism) for inequality determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - significance of the free market economy (capitalism) for inequality to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - significance of the free market economy (capitalism) for inequality is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between capital expenditure, current expenditure and transfer payments.

Use a - distinction between capital expenditure, current expenditure and transfer payments to connect the rule to the data and decision in the question.

This matters because a - distinction between capital expenditure, current expenditure and transfer payments determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between capital expenditure, current expenditure and transfer payments to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between capital expenditure, current expenditure and transfer payments is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Reasons for the changing size and pattern of public expenditure in an international context:; changing incomes; changing age distributions; changing expectations.

Use b - reasons for the changing size and pattern of public expenditure in an international to connect the rule to the data and decision in the question.

This matters because b - reasons for the changing size and pattern of public expenditure in an international determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - reasons for the changing size and pattern of public expenditure in an international to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Reasons for the changing size and pattern of public expenditure in an international is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of differing levels of public expenditure as a proportion of GDP on:; productivity and growth; crowding out; levels of taxation.

Use c - significance of differing levels of public expenditure as a proportion of gdp on: • to connect the rule to the data and decision in the question.

This matters because c - significance of differing levels of public expenditure as a proportion of gdp on: • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - significance of differing levels of public expenditure as a proportion of gdp on: • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - significance of differing levels of public expenditure as a proportion of GDP on: • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between, and examples of, direct and indirect taxes.

Use a - distinction between, and examples of, direct and indirect taxes to connect the rule to the data and decision in the question.

This matters because a - distinction between, and examples of, direct and indirect taxes determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between, and examples of, direct and indirect taxes to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between, and examples of, direct and indirect taxes is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between progressive, proportional and regressive taxes.

Use b - distinction between progressive, proportional and regressive taxes to connect the rule to the data and decision in the question.

This matters because b - distinction between progressive, proportional and regressive taxes determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between progressive, proportional and regressive taxes to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between progressive, proportional and regressive taxes is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The economic effects of changes in direct and indirect tax rates on:; incentives to work; tax revenues: Laffer curve analysis; income distribution; real output and employment; the price level; the trade balance; FDI flows.

Use c - economic effects of changes in direct and indirect tax rates on: • incentives to work • to connect the rule to the data and decision in the question.

This matters because c - economic effects of changes in direct and indirect tax rates on: • incentives to work • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - economic effects of changes in direct and indirect tax rates on: • incentives to work • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - economic effects of changes in direct and indirect tax rates on: • incentives to work • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between: borrowing and; fiscal deficits and fiscal surpluses public sector debt; automatic stabilisers and discretionary fiscal policy; a fiscal deficit and the national debt; structural and cyclical fiscal deficits.

Use a - distinction between: borrowing and • fiscal deficits and fiscal surpluses public sector to connect the rule to the data and decision in the question.

This matters because a - distinction between: borrowing and • fiscal deficits and fiscal surpluses public sector determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between: borrowing and • fiscal deficits and fiscal surpluses public sector to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between: borrowing and • fiscal deficits and fiscal surpluses public sector is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing the size of fiscal deficits and national debts.

Use b - factors influencing the size of fiscal deficits and national debts to connect the rule to the data and decision in the question.

This matters because b - factors influencing the size of fiscal deficits and national debts determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors influencing the size of fiscal deficits and national debts to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors influencing the size of fiscal deficits and national debts is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of the size of fiscal deficits and national debts:; impact on interest rates; debt servicing; intergenerational equity.

Use c - significance of the size of fiscal deficits and national debts: • impact on interest to connect the rule to the data and decision in the question.

This matters because c - significance of the size of fiscal deficits and national debts: • impact on interest determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - significance of the size of fiscal deficits and national debts: • impact on interest to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - significance of the size of fiscal deficits and national debts: • impact on interest is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

How governments use fiscal policy, monetary policy, exchange- policies rate policy, supply-side policies and direct controls to:; reduce fiscal deficits and national debts; control the rate of inflation; respond to external shocks in the global economy; reduce poverty and inequality.

Use a - governments use fiscal policy, monetary policy, exchange- policies rate policy, to connect the rule to the data and decision in the question.

This matters because a - governments use fiscal policy, monetary policy, exchange- policies rate policy, determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - governments use fiscal policy, monetary policy, exchange- policies rate policy, to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - governments use fiscal policy, monetary policy, exchange- policies rate policy, is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Use of demand-side policies in response to the global financial crisis of 2008.

Use b - use of demand-side policies in response to the global financial crisis of 2008 to connect the rule to the data and decision in the question.

This matters because b - use of demand-side policies in response to the global financial crisis of 2008 determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - use of demand-side policies in response to the global financial crisis of 2008 to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Use of demand-side policies in response to the global financial crisis of 2008 is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to control TNCs:; to reduce tax avoidance; the regulation of transfer pricing; limits to government ability to control TNCs.

Use c - measures to control tncs: • to reduce tax avoidance • the regulation of transfer to connect the rule to the data and decision in the question.

This matters because c - measures to control tncs: • to reduce tax avoidance • the regulation of transfer determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - measures to control tncs: • to reduce tax avoidance • the regulation of transfer to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Measures to control TNCs: • to reduce tax avoidance • the regulation of transfer is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of policy changes on:; local economies; national economies; the global economy.

Use d - impact of policy changes on: • local economies • national economies • the global economy to connect the rule to the data and decision in the question.

This matters because d - impact of policy changes on: • local economies • national economies • the global economy determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - impact of policy changes on: • local economies • national economies • the global economy to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - impact of policy changes on: • local economies • national economies • the global economy is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Problems facing policymakers when applying policies:; inaccurate information; risks and uncertainties; inability to control external shocks.

Use e - problems facing policymakers when applying policies: • inaccurate information • risks to connect the rule to the data and decision in the question.

This matters because e - problems facing policymakers when applying policies: • inaccurate information • risks determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - problems facing policymakers when applying policies: • inaccurate information • risks to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Problems facing policymakers when applying policies: • inaccurate information • risks is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The three components of the Human Development Index (HDI): economic education, health, income; how they are measured. development.

Use a - three components of the human development index (hdi): economic education, health, to connect the rule to the data and decision in the question.

This matters because a - three components of the human development index (hdi): economic education, health, determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - three components of the human development index (hdi): economic education, health, to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - three components of the Human Development Index (HDI): economic education, health, is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Advantages and limitations of the HDI in comparing living standards between countries and over time.

Use b - advantages and limitations of the hdi in comparing living standards between countries to connect the rule to the data and decision in the question.

This matters because b - advantages and limitations of the hdi in comparing living standards between countries determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - advantages and limitations of the hdi in comparing living standards between countries to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Advantages and limitations of the HDI in comparing living standards between countries is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Other measures of development:; the percentage of adult male labour in agriculture; access to clean water; energy consumption per capita; access to internet per thousand of population; access to mobile phones per thousand of population; access to doctors per thousand of population.

Use c - other measures of development: • the percentage of adult male labour in agriculture • to connect the rule to the data and decision in the question.

This matters because c - other measures of development: • the percentage of adult male labour in agriculture • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - other measures of development: • the percentage of adult male labour in agriculture • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Other measures of development: • the percentage of adult male labour in agriculture • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of economic factors in different countries: growth and; volatility of commodity prices development; primary product dependency (the Prebisch-Singer hypothesis); savings gap (the Harrod-Domar model); foreign currency gap; capital flight; demographic factors (size and age distribution of population; migration); debt (household and overseas); access to credit and banking; infrastructure; education and skills.

Use a - impact of economic factors in different countries: growth and • volatility of commodity to connect the rule to the data and decision in the question.

This matters because a - impact of economic factors in different countries: growth and • volatility of commodity determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - impact of economic factors in different countries: growth and • volatility of commodity to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - impact of economic factors in different countries: growth and • volatility of commodity is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of non-economic factors in different countries:; corruption; poor governance; civil wars; migration; terrorism.

Use b - impact of non-economic factors in different countries: • corruption • poor governance • to connect the rule to the data and decision in the question.

This matters because b - impact of non-economic factors in different countries: • corruption • poor governance • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - impact of non-economic factors in different countries: • corruption • poor governance • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - impact of non-economic factors in different countries: • corruption • poor governance • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of market-orientated strategies: promote growth; trade liberalisation and development; promotion of FDI; removal of government subsidies; privatisation; floating exchange rate systems; microfinance schemes.

Use a - impact of market-orientated strategies: promote growth • trade liberalisation and to connect the rule to the data and decision in the question.

This matters because a - impact of market-orientated strategies: promote growth • trade liberalisation and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - impact of market-orientated strategies: promote growth • trade liberalisation and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - impact of market-orientated strategies: promote growth • trade liberalisation and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of interventionist strategies:; development of human capital; protectionism; managed exchange rates; infrastructure development; promoting joint ventures with TNCs; buffer stock schemes.

Use b - impact of interventionist strategies: • development of human capital • protectionism • to connect the rule to the data and decision in the question.

This matters because b - impact of interventionist strategies: • development of human capital • protectionism • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - impact of interventionist strategies: • development of human capital • protectionism • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - impact of interventionist strategies: • development of human capital • protectionism • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of other strategies:; industrialisation (the Lewis structural dual-sector model); development of tourism; development of primary industries; debt relief; aid.

Use c - impact of other strategies: • industrialisation (the lewis structural dual-sector to connect the rule to the data and decision in the question.

This matters because c - impact of other strategies: • industrialisation (the lewis structural dual-sector determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - impact of other strategies: • industrialisation (the lewis structural dual-sector to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - impact of other strategies: • industrialisation (the Lewis structural dual-sector is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of international institutions:; the World Bank; the International Monetary Fund (IMF); non-government organisations (NGOs).

Use d - role of international institutions: • the world bank • the international monetary fund to connect the rule to the data and decision in the question.

This matters because d - role of international institutions: • the world bank • the international monetary fund determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - role of international institutions: • the world bank • the international monetary fund to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - role of international institutions: • the World Bank • the International Monetary Fund is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.