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