A low carbon economy is very energy efficient and uses renewable energy sources such as wind, solar and wave power instead of fossil fuels.
q q q Key Concepts
1. (a) Explain three causes of unemployment. (b) List three implications of a high unemployment rate.
2. (a) Explain the two key causes of inflation. (b) List three implications of high inflation.
3. (a) Explain what is meant by interest rates. (b) Name the organisation that sets the minimum interest rates in Ireland.
4. (a) What is economic growth? (b) Distinguish between an economic boom, an economic recession and an economic depression.
5. (a) Explain what is meant by the term ‘business cycle’. (b) Explain two benefits of economic growth.
6. (a) Identify two possible negative effects of economic growth. (b) What is meant by sustainable development? (c) What is meant by a low carbon economy?
Critical Thinking Skills
1. If the rate of unemployment rises, give one effect that this could have on: (a) A local supermarket business. (b) The likelihood of shop workers looking for a pay rise.
2. If inflation increases rapidly, give one effect that this could have on: (a) Households trying to prepare a budget for the year. (b) The likelihood of shop workers looking for a pay rise. (c) Businesses trying to plan their cash flow.
3. If interest rates double, give one effect that this change could have on: (a) The likelihood of households saving their money in a bank. (b) The likelihood of households borrowing money for a new car. (c) The likelihood of businesses borrowing money to expand.
4. If economic growth starts to decline and the economy slips into a recession, give one effect that this could have on: (a) Sales of goods in shops and economic activity generally. (b) Levels of unemployment.
