Junior Cert ‘06
BUSINESS STUDIES Revision Notes
National Budget, Economic Framework and Foreign Trade
Name:______Class:______THIS BOOKLET SHOULD BE PLACED IN YOUR PORTFOLIO AFTER ITS USE IN CLASS IS FINISHED Mr Foster
Section One: NATIONAL BUDGET
Expenditure
Government Expenditure
2 types
Examples: Examples: Income
Government Income
2 types
Examples: Examples: The Budget Income v’s Expenditure
The Capital Budget ______
______
Why will it always balance ? ______
The Current Budget ______
______
Surplus = ______greater than______
What do we do?
Deficit= ______greater than______
What do we do?
National Debt ______
______
Debt Servicing ______
______
Section Two: ECONOMIC FRAMEWORK
Scarcity ______
______
Example:
Need ______
______
Example:
Want ______
______
Example:
Economics ______
______
Opportunity Cost
______
Economy
______
______
FACTORS OF PRODUCTION
=______
Land
______
______
Example:
Labour
______
______
Example:
Capital
______
______
Example:
Enterprise
______
______Example:
Rewards for supplying the Factors of Production Land
Labour
Capital
Enterprise
National Economy
______
______
What Decisions do we have to make involving the Factors of Production in the National Economy ?
1______
2______
3______
4______
5______
How Can National Economies be organised? How do we measure the success of a National Economy? ______
Ways of Measuring Economic Growth
Gross National Product [GNP] ______
______
Gross Domestic Product [GDP] ______
______
We measure growth using ______
Why? ______
______
Inflation Inflation ______
______
Change _ in _ Pr ice Formula: 100 Old _ Pr ice
Measured using the CPI = ______Why do we want low inflation?
Section Three: FOREIGN TRADE
Imports (______) ______
______
Visible Imports ______
______
Example:
Invisible Imports ______
______
Example:
Exports (______) ______
______
Visible Exports ______
______
Example:
Invisible Exports ______
______
Example:
Reasons for Foreign Trade 1______2______3______4______
Balance of Trade
Balance of Trade ______
______
Balance of Trade Surplus=______
Balance of Trade Deficit = ______
What do we do? ______, ______
Import Substitution ______
______
Example:
Capital Goods ______
Example:
Balance of Payments
Balance of Payments ______
______
Net Earnings from Invisible Trade ______
Total Imports ______
Total Exports ______
Currency Conversion
To Convert to Euro______
To Convert from Euro______
The European Union
Founding Document ______
Aims of the EU 1______2______3______4______
Advantages to Ireland of EU Membership 1______2______3______4______
Drawbacks to Ireland of EU Membership 1______2______3______4______
The Euro
The Euro ______
Advantages 1______2______3______4______