Jaisul Naik

* national debt is the acccumulation of budget deficits over multiple years * a budget deficit is when gov spending > tax revenue * this is bad because it means the government will have high interest

* the Harrod-Domar model suggests that low national savings and poor capital output are the biggest barriers preventing the development of an economy * it explains that * higher level of savings * makes investment in capital

* many developing countries rely on exporting primary products to generate income * this is a barrier to economic development because * the prices of primary products are volatile - due to sudden changes in the

* subsidy * definition * diagram * link it to the market failure * evaluation * over-dependence on subsidy * opportunity cost - taxpayer A subsidy is a payment given by the government to firms, causing supply to shift to

* Edexcel A-Level Economics Paper 1 June 2024 * Edexcel A-Level Economics Paper 2 June 2024 * Edexcel A-Level Economics Paper 3 June 2024