Cambridge International as and a level Economics Ebook

285
Index
 

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transfer earnings 
and economic rent in labour markets 
209–10
transition
characteristics of economic 
25–6
transmission, monetary 
255
transmission of preferences 
63
traps
development 
233
,
 238
liquidity 
257–8
poverty 
201
trends, unemployment 
243
unemployment
consequences of 
242–3
defi nition, causes and rates of
241–2
diffi
culties of measuring 
243–4
link with infl ation 
267–8
patterns and trends 
243
policies to correct 
244
refl ationary fi scal measures to 
correct 
244
unions
customs 
105–6
economic 
106–7
trade 
210–12
unit elasticity 
46
universal benefi ts 
201
urbanisation
classifi cation of economies according 
to 
238–9
utility
and marginal utility 
145–6
values
distinction between real and money 
86–9
relationship between internal and 
external monetary 
266
variable costs 
152
vertical integration 
176
volumes, sales
maximization of as objective of 
fi rms 
180–81
voluntary export restraints 
109
wages
determination in imperfect markets 
210–12
determination in perfect markets 
208–10
‘wants,’ unlimited 
14–15
wealth
policies for redistribution of income 
and 
201–3
vs. income as driver for government 
intervention 
199–200
welfare, measurable economic (MEW) 
231
withdrawals and leakages 
249–50
World Bank 
defi nition and purpose 
234
role in aiding economic development 
261
x-ineffi
ciency 
173
supply, aggregate
components 
82–3
interaction with aggregate 
demand 
84–5
see also
 curves, aggregate supply
supply side policies
aims and types of macroeconomic 
116–18
to correct balance of payments 
disequilibrium 
121–2
see also factors infl uencing e.g.
 
defl ation;
infl ation
surpluses
conditions of existence of consumer 
63–4
conditions of existence of producer 
64–5
sustainability
defi nition and characteristics 
219
see also factors impacting e.g.
 
development, 
economic
switching
of balance of payments 
disequilibrium 
119–20
systems, legal
role in aiding economic development 
261
systems, price
and microeconomy 
38–67
targets, infl ation 
265
tariff s 
108
taxation
canons of 
70
reducing inequality and redistributing 
wealth 
201
signifi cance as government 
intervention 
68
,
 70–73
see also type e.g.
 ad valorem tax
;
 income 
tax; indirect taxes
; 
progressive taxation;
regressive taxation
; 
specifi c tax
thrift , paradox of 
250
time
infl uence on production 
18
Tinbergen’s rule 
269
total currency fl ow 
255
total utility 
145
trade
classifi cation of developing economies 
according to external 
238
cycles of and gaps in output 
221–2
purpose and role of international 
258–9
trade, terms of
absolute and comparative advantage 
in 
102–4
benefi ts of free trade 
104–5
causes and impact of changes in 
101
features 
100–101
protection processes 
108–11
see also
specifi c features e.g
.
 blocs, trade
; 
creation, trade
;
 diversion, trade
trade unions
role in wage determination 
210–12
trade weighted exchange rates 
95
transactions motive 
256
transfer (payments transfer) 
74
services
classifi cations of 
33–4
provision reducing inequality and 
redistributing wealth 
201–3
see also
 goods
shadow economy 
227
shadow prices 
139
shift s
demand curve 
56–9
supply curve 
59–60
shoe leather costs 
88
, 
89
short-run aggregate supply 
82–3
small and medium enterprises (SMEs) 
159
social costs and benefi ts 
135–6
specialisation
in production of goods 
19
specifi c tax 
60
speculative motive 
254
spending 
see
 
expenditure
stabilization, automatic 
115
standards, living
indicators of 
230–32
performance over time and between 
countries 
226–8
role of national statistics in judging 
224–5
see also factors impacting e.g.
 gross domestic 
product; gross national income; gross 
national product 
statements, positive and normative 
18–19
statistics, income
role in judging economic 
performance 
224–5
strategies, pricing 
see
 prices and pricing
structural budget defi cits 
116
structural unemployment 
242
structures, economic
classifi cation of economies according 
to 
234–5
structures, market
defi nition, models and stages of 
159–60
see also factors aff ecting e.g.
 
competition
structures, production
globalisation and 
149–50
subsidies
signifi cance as government 
intervention 
68
,
 73–4
of exports as method of protection 
109
defi nition and use by government 
44
substitute goods 
41
substitution 
eff ect 
147
marginal rate of 
148
use of inference curves in deciding eff ect 
of 
148
supply
defi nitions and types 
42
, 
61
factors infl uencing 
43–4
interaction with demand 
55–6
of labour 
205
sources of money 
253–5
see also
 curves, supply; elasticity
; 
price 
elasticity of supply; schedules
286
Cambridge International AS and A Level Economics

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Acknowledgements
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e author and publishers acknowledge the following 
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Text sources
Book
Reproduced by permission of Cambridge International 
Examinations: p66 Q1 Cambridge International AS and 
A Level Economics 9708 Paper 2 Q2 October/November 
2007; p113 Q 1 Cambridge International AS and A Level 
Economics 9708 Paper 23 Q4 October/November 2012, 
Q2 Cambridge International AS and A Level Economics 
9708 Paper 23 Q4 October/November 2012, Q3 Cambridge 
International AS and A Level Economics 9708 Paper 22 
Q1 October/November 2011; p128 Q3 Cambridge 
International AS and A Level Economics 9708 Paper 21 
Q1 May/June 2012; p215 Q3 Cambridge International 
AS and A Level Economics 9708 Paper 41 Q4 October/
November 2012; p263 Q3 Cambridge International AS 
and A Level Economics 9708 Paper 41 Q1 May/June 2011, 
Q4 Cambridge International AS and A Level Economics 
9708 Paper 41 Q7 May/June 2011; p272 Q1 Cambridge 
International AS and A Level Economics 9708 Paper 41 Q6 
May/June 2011; p277 Table 11.1 Cambridge International 
AS and A Level Economics 9708 Syllabus.
p26 Daily Telegraph 16 Nov 2013; p39 Express Tribune 
5 Sept 2013; p66 Q3 reproduced by permission of OCR; 
p70 Th
e Standard Kenya 17 Sept 2011; p77 Asia News 
Network 3 January 2014; p198 Th
e Express Tribune 30 July 
2012 (Farooq Tirmiz); p210 Th
e Guardian 8 August 2013 
(J. Clay).
CD ROM
Th
e two lakh car-just what India needs / Th
e Independent 
22 June 2007 and South China Morning Post 2010; Smog-
weary Chinese vent / Daily Telegraph 26 February 2014.