COMMON AGRICULTURAL POLICY
The 300,000 British agricultural holdings employ 1.4% of the workforce and contribute 0.4% to UK
GDP. In EU27 it employs 5.6% (some 12.2mn) of the workforce and contributes 1.2% to EU GDP.
(look up figures for EU28)
Economic theory holds that free trade is beneficial because of;
1. comparative advantage: specialisation will lead to greater efficiency with goods and
services being produced at the lowest cost per unit of output. Countries
REVISION GUIDELINES FOR EXAM
The paper will consist of 2 sections. Section A is compulsory (60 marks) and one question
from Section B (40 marks).
This is divided into 2 parts: short answer questions (4 X 10 marks)
POSSIBLE INDEPENDENLY RESEARCHED QUESTIONS FOR
SECTION B ECON 159 PAPER 2014/15
These two questions have been submitted to the external moderator for his
consideration.He may or may not accept them and request changes BUT THE
TOPICS WILL REMAIN THE SAME i
*COMPARATIVE ADVANTAGE DIFFERING
OPPORTUNITY COST RATIOS. Deals with the
most effecient allocation of scarce resources.
CAUTION: COMPARATIVE ADVANTAGE IS
NOT THE SAME AS COMPETITIVE
COMPARATIVE ADV. = NATIONS + RESOURCE
35.4 The economics of EMU
In 1999, Professor Robert Mundell won the Nobel Prize for economics, in
part for his pioneering work on optimal currency areas.
An optimal currency a . "
(:1 group of countries L
Mundell, and the economists who came after him,
Types of Economic Integration
Remorlal Common Harmony of Harmony Single
laws of Currency
/ Free Economic
Free Trade .-
Common/ Yes Yes Yes -
- ' e