A 1. What are the three main economic issues?
• What should be produced?
• Who should produce?
• How should the surplus be distributed?
A 2. What is meant by net income and disposable income?
• Net Income = Salary - tax. The money you get there after overestimated. Disposable income is the sum of net income and contributions.
A 3. What are the three factors of production, and what does it mean?
• Raw materials (knowledge?)
• Real capital (knowledge?)
A 4. Of the two main reasons it is necessary for companies with profits?
• Proceeds from the sale.
If the company's earnings are greater than the costs, it leads to profit, to profit from.
A certain part needed for investments. A company may need t. Ex. new equipment or more employees, then one can produce and sell more, plus increase profits.
A 5. What are the main costs have a business?
• Employers force, the tax that employers pay to the state.
• Raw materials
• Operating costs, as necessary, such as electricity to all machines
• Capital costs
A 6. What are three different forms of ownership has a business?
• Privately owned company
• Cooperative enterprises
• Publicly owned companies
1, Municipalities often run different companies, for example. bus companies
2, County Council manages frequent bus services in the county
3, the State owns ¼ of Sweden's forests and owns large mining company LKAB
A 7.Vilka three different types of companies, a privately owned company have?
Sole proprietorship, can only have one owner. Profits are taxed at the owner's other income. In case of loss affected only the owner himself.
Partnership, acts as a sole proprietorship except that they are at least two shareholders.
Corporation, larger companies. A share is proof that the owner has a stake in the company, and each share a portion of its profits and a voice in important decisions for the company.
B 1. What is "the market" and the various "markets" are there?
The place where buyers and sellers meet, "market economy".
- Services (labor = employer / purchasers
workers / sellers
(Ex. Banks, insurance, school, rental market, housing)
What determines the market price?
What is meant by supply and demand?
Supply: the quantity of goods available.
Demand: The amount of goods that there is interest to buy.
The supply curve: the price control goods that invite out.
The demand curve: If the price is considered too high, demand is low, if the price is considered low, demand is high.
B 3. What determines the market price?
It is about accessibility. ( more information)
B 4. Oligopoly = a few companies sell identical goods
(Ex. Petroleum products, electricity.
Free competition = means that anyone can start a business that produces and sells at a price to be determined. Which attracts many to start up and produce (sell).
Monopoly = Means that there is only one manufacturer or seller in the market. You can then put a price on a product without considering competitors.
B 5. What are the main tasks of the banks?
* Take care of the money deposited in the bank
* Borrow money
* Perform various kinds of services against payment
* Provide advice and help if you want to buy shares
* Managing the declarations and helps Bokuppteckning.
B 6. What are the different types of banks are there?
Commercial banks: households and enterprises as customers
Swedbank: was created to encourage people to save
Föreningssparbanken: Association's bank and farmers, but becomes more and more a commercial
B 7. What is the planned economy, market and mixed economy?
Plan Economy = The state determines what and how much should be produced.
Market economy = Company determines dept and how much to produce what they think consumers want to buy. Market demand determine the production.
Among Economy = A market economy with many elements of the planned economy. Privately owned companies that produce and sell most goods in Sweden. The productions are offered on the market, where the price is determined.
C 1. What fundamental factors behind Sweden's becoming a developed country rather than a developing country?
1, Sweden had the most important raw materials are wood and iron ore
2, Since the 1600s, Sweden had a distinguished technical tradition. Between Sweden had iron mills which produced quality steels England gladly bought.
3, schools of higher education grew rapidly.
4, laws changed so that a democracy with universal suffrage and freedom of expression emerged.
5, Sweden had - with few exceptions - honest and knowledgeable officials and politicians. Sweden was a country with a good reputation in the outside world, a country that foreigners could trust and where people could trust each other.
C 2. What does GDP, and what it means, and why it may be problematic to measure a country's wealth with GDP?
GDP = Gross domestic product = the total value of everything produced in a country during one year.
Eg It will produce magazines.
You start by chopping down a tree. It sold for 15,000 kr. Then it will be refined to paper. It sells the product for 32,000 kr. Finally, do you sell the finished papers for 54000 kr.
15 + 17 + 22 = 54, "value added"
It is anticipated, therefore the commodity price from start + from the differences. The more refined commodity becomes, the greater the value.
The more a product is processed within the country, the more revenues will allow its inhabitants.
The finished product is counted but not the semi-finished product.
C 3. What is the GDP per capita, and what is it used for?
GDP / capita gross domestic product
in the country
Problematic, says nothing more than how much money is "available" in a country.
Measuring a country's wealth
= HDI (Human Developtement index)
Infant mortality, literacy, access to healthcare, housing standards, GDP / capita + other factors.
(The income distribution) what the money is spent on.
C 4. How can the municipality money and what are they used for?
The most important source of revenue for municipalities is the taxes. Municipalities are also government grants. The tax is used for fire brigade, sports grounds, schools, elderly care, day care and many other areas that we are collectively responsible for each municipality.
C 5. What income is government and what are they used for?
C 6. What we have chosen to organize our welfare, and what problems / opportunities?
How we have chosen to organize our welfare?
What is welfare?
= Welfare security of society.
Our prosperity: All pay (taxes), everyone may have access to it. It is (publicly funded)
- "Why should I pay for things that I can not use"
The Swedish welfare is overpriced!
It's fine as long as everyone is working and paying taxes. Plus and minus must go together.
A system like this can easily be abused!
Ex. man in sick without being sick.
The welfare of the EMU
The growth will increase,
Higher tax revenue,
More money for welfare.
Worse: To comply
The convergence requirements, we can
Do not invest as much in
e.g. The unemployed, the sick, etc.
Nor on education.
C 7. What are transfers?
Transfer payments - "To take from the rich and
Give to the poor "
Transfer system =
Money is transferred from all (the rich?) Via taxes to the welfare system so that everyone (poor?) Take part of it.
"From each according to ability, to each according to his needs"
C 8. What are booming and what it may mean for the labor market and prices?
Bull Market = "Things are going well for Sweden"
- The companies sell much-> makes a profit
- More hiring, wages rise
(On labor demand, rising wages, to bring people)
- Tax revenue ökar-> Welfare system can be improved.
- Prices are rising
- Risk of Inflation
C 9. What is meant by the recession and what it may mean for the labor market and prices?
Recession = "der goes bad for Sweden"
- The companies sell Lite> profit decreases (loss-)
- Fewer hiring, layoffs (redundancies) increases, wage increases less
- Tax revenue decreases + the cost of the welfare system rises.
- Price increases are smaller.
- Less risk of inflation -> inflation increases superficial
C 10. What is inflation and why is it harmful to society?
What is inflation?
Inflation means that the value of money decreases = you get less and less for example,
- If inflation is higher in Sweden than abroad reduces foreign sales
- The company performs worse, staff need to be fired - unemployment increases
- Saving Money decreases in value.
How do you counter this, anyway?
C 11. What are the different types of inflations are there and what is behind them?
What "types" of inflation, how they arise?
1, demand - inflation (demand is greater than supply =
drive up prices)
2, Cost inflation (production costs rise due to eg higher wages)
Explanation: wage 3%
Production Increase 1%
Possible inflation = 2%
The company must increase the price by 2% to cover the increase in wage costs.
Price rise: 2%
Price - wage spiral
Higher wages lead to higher prices, higher prices, demand higher wages.
3, Imported inflation (petroleum products, for example)
4, inflation by printing money (increasing the money supply without a corresponding increase in production) increase in the production of banknotes.
5, Commercial decisions (Increased taxes and fees)
C 12. What can an individual country do to avoid inflation?
How shall one country to act to avoid being hit by inflation?
1, raising interest rates, raising taxes, if the interest rate rises, it becomes more expensive to borrow money. If it becomes more expensive to borrow money, people buy less, putting less demand, and then lower inflation.
2, Price o pay freeze, "consensus"
Consensus = unions and employers are aware that high inflation means and therefore usually agree to hold down wage increases.
3, Oil Rises for example, 10%, the state can then, for example reduce taxes on goods with the same amount, to avoid inflation.
4 Stop the presses! Currency exchange. (Avoid raising taxes, interest)
5, Let be!
How can one affecting the EMU to change this?
No! We lose control of our main "countermeasures" against inflation-> interest rate!
Yes! Why should the European Central Bank to be less interested in fighting inflation than the Swedish.
C 13. What can the state do to even out the differences between high and recession?
Sometimes the boom and sometimes recession.
The increase in production is relatively constant. It goes up and down.
How can you even out cyclical fluctuations?
How to get stops on the boom so that the market does not overheat?
High -> dampen demand, but perhaps not too much.
- Raise some taxes. Raise VAT on certain goods.
- Lowering contributions (child support)
- Raise rates. More expensive borrowing and more favorable saving.
To get a steady economy is like to fight inflation.
What will Parliament making the recession?
Low-> increase demand.
- Lowering the tax.
- Lowering the interest rate
- Raising contributions
- Government jobs, public sector, education and healthcare.
- Invest in training.
How has the state can afford all this?
- Save the boom
- During balance the budget. (More expenditure than income)
The state borrows money from its citizens through bonds.
C 14. How does the world economy in Sweden?
Foreign högkonjunktur- Swedish boom
Foreign lågkonjunktur- Swedish recession
(Germany and the United States, two of Sweden's most important trading countries, if it is good or bad for them, it also affects Sweden, since import and export goods to them)
C 15. Is the ever-increasing growth consistent with an ecologically sustainable society?
Ecologically sustainable society =
Minimize pollution, use of renewable resources.
Increased growth = increased production = more pollution
How do you avoid this?
- Alternative energy sources (solar, wind, etc.)
- Alternative fuels (ethanol, fuel cells)
- Controlling the demand for environmentally friendly alternatives. If demand for example. ethanol (car) is not so great is the range higher and you can not ask. It is about managing demand.
The answer: of course it is!
Increased production focuses on environmental goods leads to an increase in material prosperity and a more sustainable society.
D 1. What is the import and export?
A country products that are missing there and export what they can produce.
D 2. Which countries mainly engages Sweden trafficking?
Mainly neighbors in Europe, the industrialized countries in the EU.
Sweden, like other countries, a considerable trade with the United States.
D 3. For what reason, Sweden can not compete with other countries in certain industries?
Labour costs are too high in Sweden.
D 4. What barriers to trade are the countries?
Duties hinder free trade between countries of the world and hinder the way of economic development in the world.
D 5. Why is it important to have a fairly even balance of trade?
The trade balance = imports and exports should be fairly equal.
Otherwise -> ...
Exports greater than imports = injection of purchasing power, leading to increased risk of inflation.
Imports exceed exports = The money ends up in other countries, the risk of unemployment increases.