Unit 2
State the equation for YED.
YED = percentage change in (quantity) demand / percentage change in income
Inflationary gap
Deflationary gap or recessionary gap
State three dimensions of the Human Development Index (HDI).
Long and healthy life.
Knowledgable.
Good standard of living.
Author of massive bestsellers like It Ends With Us and Verity, her books are hugely popular on TikTok. What is her name?
Colleen Hoover
Which international organisation's logo is this?
World Health Organisation
State the three different conditions for allocative efficiency.
MB = MC
MSC = MSB
P = MB
List three interventionist policies that can be used to promote equity.
1. Progressive tax policies.
2. Transfer payments.
3. Investment in human capital.
4. Minimum wage legislation.
State the four components of a current account balance.
Net income
Net current transfers
Trade balance in goods (X-M)
Trade balance in services (X-M)
The 2024 F1 campaign came to a close with this weekend’s Abu Dhabi Grand Prix.
Since 2009, which F1 driver has won the most number of times at the Abu Dhabi Grand Prix?
Lewis Hamilton
2011, 2014, 2016, 2018-2019
What is the name of this painting?
Guernica by Pablo Picasso
State two market-based policies that can be used to reduce consumption of alcohol (a demerit good).
Indirect tax
Price floor
State the three sources of structural unemployment.
1. Labour market rigidities e.g., minimum wage legislation, labour unions, employment security legislation
2. Mismatch between labour market skills demanded and supplied (ie., permanent decrease in demand for workers' skills)
3. Geographical immobility (ie., permanent decrease in demand for workers' skills)
State the three types of policies that can be used to reduce a persistent deficit in a country's current account balance.
Expenditure-reducing policies
Expenditure-switching policies
Supply-side policies
What was the world's highest-grossing film in 2024?
Inside Out 2
This is one of the most iconic photographs of the 20th century. Where was it taken?
Tiananmen Square, 1989.
Define the term satisficing.
State all three equations for the Keynesian multiplier.
k = 1 / (1-MPC)
k = 1 / (MPS + MPM + MPT)
k = change in real GDP / change in any one of the components of AD
What is the difference between humanitarian aid and development aid?
Humanitarian aid: short-term relief during times of emergencies, and includes food and medical aid
Development aid: long-term aid for the purpose of promoting economic growth and development, and includes project aid, programme aid, technical assistance, and debt relief.
After an appeal, this American gymnast was dropped from third (bronze) to fifth place in the women's floor exercise final at Paris 2024. What is her name?
Jordon Chiles
She was an internet sensation in 2024. What is her name?
Moo Deng.
What two conditions are required for collective self-governance?
1. A boundary for the resource that users are managing.
2. Good methods of communication between users in order to create rules for the use of the resource.
State at least 6 indicators included in the multidimensional poverty index. (There are 10 indicators in total.)
Any 6 of the following:
Child mortality (health dimension)
Nutrition (health dimension)
Years of schooling (education dimension)
School attendance (education dimension)
Cooking fuel (living standards dimensions)
Sanitation (living standards dimensions)
Drinking water (living standards dimensions)
Housing (living standards dimensions)
Water (living standards dimensions)
Assets (living standards dimensions)
Define the term import substitution.
A type of trade strategy used to promote economic growth and development.
Involves intervening with tariffs and other types of trade barriers, which increase the price of imported simple manufactured goods.
This creates an incentive for domestic consumers to substitute away from the more expensive imports to cheaper domestically-produced substitutes.