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Economics 4EC1/02 January 2023

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1. Trade and Globalization: Role of the World Trade Organization (WTO), benefits of free trade for consumers, impact of tariffs on equilibrium price and quantity, and exchange rate effects on international trade. 2. Government Policies and Economic Growth: Supply-side policies, fiscal policies to reduce unemployment, taxation effects on disposable income, and government spending on poverty reduction. 3. Employment and Unemployment: Seasonal unemployment in tourism, labor market incentives, impact of rising unemployment on tax revenue, and benefits of reducing taxes to combat unemployment. 4. Inflation and Macroeconomic Indicators: Calculation of inflation rate using CPI, impact of inflation on the economy, effects of depreciation on exports, and phases of the economic cycle. 5. Environmental and Resource Economics: Business activity and environmental damage, effectiveness of pollution control measures, government interventions in carbon emissions, and incentives for clean energy adoption. 6. International Trade and Balance of Payments: Advantages of a current account surplus, classification of trade components in the balance of payments, and impact of global economic policies on trade.
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