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Economics Yr 12
Homework Pack
Name: _________________________
Class: _________________________
Teacher: _________________________
2
Spring Term Overview: Year 12
How can you get prepared for this?
✓ Turn up to class. Every lesson you miss is the equivalent of throwing away
learning time. You are responsible for catching up if you miss a lesson.
✓ Use your exercise book as a revision guide. You will have model answers, step-
by-step guides for certain questions, feedback from your teacher, success
criteria, marks schemes etc. in your books. They are far better revision guides
than any that you pay for).
✓ Ask for help. If you would like extra revision sessions, revision resources, to go
over a lesson again etc. then we will do our absolute best to help you. Do not
turn up the morning of an assessment/mock exam and expect that last minute
effort to translate into real results.
✓ Pay attention to your targets. The definition of madness is doing the same thing
over and over again and expecting a different result. Try to fix the things that
are holding you back from the next grade before your next test.
✓ DO YOUR HOMEWORK. The best way to improve is to practise. The homework
packs let you do this.
3
Our Spring Term Homework Programme.
Due on Wednesday
Approximate
Time
Needed
Is there help?
Where can I find it?
Week
#1
Homework 1: 8th January 2020
The Objectives of Government
Economic Policy 1hr
Revision Guide
Tutor2U
Week
#2
Homework 2: 15th January 2020
Economic Growth 1hr
Revision Guide
Tutor2U
Week
#3
Homework 3: 22nd January 2020
Unemployment 1hr
Revision Guide
Tutor2U
Week
#4
Homework 4: 29th January 2020
Inflation 1hr Revision Guide
Tutor2U
Week
#5
Homework 5: 5th February 2020
Aggregate Demand 1hr Revision Guide
Tutor2U
Week
#6
Homework 6: 12th February2020
Aggregate Supply 1hr
Revision Guide
Tutor2U
Week
#7-
Half
Term
Homework 7: 26th February 2020
Macroeconomic Equilibrium 1hr Revision Guide
Tutor2U
Week
#8
Homework 8: 4th March 2020
Fiscal Policies 1hr
Revision Guide
Tutor2U
Week
#9
Homework 9: 11th March 2020
Monetary Policies – Interest
Rates 1hr
Revision Guide
Tutor2U
Week
#10
Homework 10: 18th March 2020
Monetary Policies – Money
Supply 1hr
Revision Guide
Tutor2U
Week
# 11
Homework 11: 25th March 2020
Supply Side Policies 1hr
Revision Guide
Tutor2U
Week
#12
Homework 12: 1st April 2020
Exam Practice 1hr
Revision Guide
Tutor2U
4
PLEASE NOTE: The writing estimates are guidelines. If you do the minimum amount
for every question, do not expect a top mark. The timings are not fluid. If you revise
by pretending that you have more time than you actually do, then you are
throwing away opportunities to improve.
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Homework #1. DUE: 8th January 2020
The Objectives of Government Economic Policy
TASK #1: Define
Economic
Growth
Inflation
Unemployment
Balance of
payments
TASK #2: What is the difference between equitable and equal distribution of
income and wealth?
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TASK #3: What is a policy conflict?
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TASK #4: Identity the policy conflict of the following
o Minimised Unemployment
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o Increased growth rates
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o Stable inflation rates
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TASK #5:
One of the key economic macroeconomic objectives is to ensure stable growth
rates. In recent years growth rates have stagnated as a result of uncertainty in the
market. Explain how increasing employment rates can help boost economic
growth.
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Homework #2. DUE: 15th January 2020
Economic Growth
TASK #1: Define
Gross
Domestic
Product
Gross National
Product
TASK #2: Explain the difference between real GDP and nominal GDP. Why is it
important to measure real GDP?
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TASK #3: How does the circular flow if income define macroeconomic equilibrium?
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National income increases where injections _____ withdrawals
National income decreases where injection _____ withdrawals
TASK #4: What factors cause long run economic growth?
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TASK #5: What are the costs and benefits of economic growth and why does the UK
government strive to achieve sustainable growth?
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Homework #3. DUE: 22nd January 2020
Unemployment
TASK #1: Define
Cyclical
unemployment
Frictional
unemployment
Structural
unemployment
Voluntary
unemployment
TASK #2: What is geographical immobility and how can governments intervene to
reduce geographical immobility?
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TASK #3: What demand side policies can be used to reduce unemployment?
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TASK #4: What conflicts in policies may rise as a result of increased employment
within the UK? Build chains of reasoning.
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TASK #5: It is unlikely that country will ever remove all unemployment as a result of
frictional unemployment that will always exist. How can the government intervene
to minimise unemployment within the UK
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Homework #4. DUE: 29th January 2020
Inflation
TASK #1:
Consumer
price index
Retail price
index
TASK #2: Draw the graphs for demand pull and cost push inflation
Demand Pull Inflation Cost Push inflation
TASK #3: What are the consequences of inflation?
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TASK #4: Draw the graphs for benign and malevolent deflation
Benign deflation Malevolent deflation
TASK #5: Commodity prices are volatile. Oil prices are no different, in fact they have
a significant effect on inflation rate due to oil’s importance as an input to industrial
production. Observe the inflation rates below and explain how changes in the oil
market impacted inflation.
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Homework #5. DUE:5th February 2020
Aggregate Demand
TASK #1: Define
Aggregate
demand
TASK #2: What factors influence consumption in an economy?
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TASK #3: What factors influence investment in an economy?
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TASK #4: When do governments increase spending and why?
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TASK #5: How does the multiplier process result in increases in aggregate demand.
Give to examples, building chains of reasoning.
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Homework #6. DUE: 12th February 2020
Aggregate Supply
TASK #1: Define
Aggregate
supply
Short run
aggregate
supply
Long-run
aggregate
supply
TASK #2: What are the determinants of short run aggregate supply?
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TASK #3: What are the determinants of long run aggregate supply?
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TASK #4: Draw the Keynesian aggregate supply curve.
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TASK #5: Explain the shape of the Keynesian aggregate supply curve.
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Homework #7. DUE:19th February 2020
Macroeconomic Equilibrium
TASK #1: Define
Demand side
shocks
Supply side
shocks
TASK #2: How will an increase in consumption effect the UK economy in the short
run?
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TASK #3: How will improvement in technology impact the UK economy?
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TASK #4: Use the Keynesian supply curve to explain how inflationary pressures may
vary when aggregate demand shifts to the right.
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Homework #8. DUE: 26th February 2020
Fiscal Policies
TASK #1: Define
Fiscal Policy
Direct
Taxation
Indirect
Taxation
TASK #2: What is the difference between progressive and regressive taxation?
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TASK #3: Why do government levy taxes?
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TASK #4: What are the 3 types of government spending?
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TASK #5: How can the government use fiscal policy to pull the economy out of recession?
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Homework #9. DUE: 11th March 2020
Monetary Policies – Interest Rates
TASK #1: Define
Monetary
Policy
Monetary
Policy
Committee
TASK #2: What are the effects of an increase in interest rate on the other
macroeconomic objectives?
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TASK #3: How does an increase in interest rates effect the exchange rates?
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TASK #4: What are the limitations of using the interest rates to control the economy?
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TASK #5: How can sustained low interest rates be damaging to an economy?
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Homework #10. DUE:18th March 2020
Monetary Policies – Money Supply
TASK #1: Define
Investment bank
Commercial
bank
Central bank
TASK #2: How does the central bank increase money supply in an economy?
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TASK #3: What is quantitative easing?
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TASK #4: How do expansionary monetary policies influence aggregate demand in
an economy?
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Homework #11. DUE: 25th March 2020
Supply Side Policies
TASK #1:
Supply side
policies.
Supply side
improvements
TASK #2: How can supply side policies be used to increase employment?
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TASK #3: What are free market supply-side policies?
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TASK #4: How can the reductions in trade unions increase AD in an economy?
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TASK #5: How can interventionist supply side policies increase AS in an economy?
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Homework #12. DUE: 1st April 2020
Exam Practice
TASK #1: “A tighter fiscal policy was adopted to reduce the budget deficit. Meanwhile,
loose monetary policy was used to bring about a recovery of the UK economy.’
Use the extracts and your knowledge of economics to assess the contribution that fiscal policy
and monetary policy can make in sustaining the recovery of an economy, such as the UK.
[25 marks]
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TASK #2: ‘Lower commodity prices have also been good for most businesses… However, not
everyone benefits.’
Use the data in the extracts and your knowledge of economics to assess the likely impact of
the fall in world commodity prices on the performance of the UK economy.
[25 marks]
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