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______