There you go, right? So premium bonds, so premium bonds are edged into a monthly price draw with prices ranging from 25 pounds to 1 million pounds. You can buy them for a gift for a child under 16, okay? And that's for the, that's for people, okay? Like you and me, I have premium bonds, okay? So every month I can go and check and see whether I've won a million pounds or 25 pounds or whatever. Never won a million pounds, sadly. But I have one of my children has ₩500 pounds one month. So you know, you can win money. So that's for me as a personal perspective, as the government, from our economic perspective, looking at it from the bigger thing, what are they? They're a government saving scheme. Okay. So the money that I've paid for my bonds, for my premium bonds is now with the government. And the money which people save in this scheme can be used by the government for public services. It's a way for the government to borrow money if there is a actually if there's a deficit, if there's. If there is a deficit in their income from tax. So if they are spending too much, it's a way for them to borrow money because I save money with them. Lots of other people save money with the government. And because people have saved money with them, they can spend that money. They can borrow my money. And the price they pay me for borrowing my money is the chance that I would win money. They don't give interest on premium bonds like normal banks. They instead of interest, you get the chance to win money. So is any brief answer? Sorry, is there any brief definition? Sorry, because I can't understand it very well for it. It's this it's this one. Yeah. Have you read that definition? This definition, there are government saving thing, the money which the people save in this thing can be used by the government to use for public service. It is a way for the government to borrow money if there is a deficit in the income from tax, also the money which the people save in this same can be used by the government use for the public services have no variunderstand this sentence. Okay this is the government Yeah the governspend money. On things like public services. And the government get money. From things like tax. Yeah so money comes in and money goes out for the government, but sometimes the government doesn't have enough money. Okay? Not enough money comes in and they are spending too much. Okay? So there's a budget deficit. There's a budget deficit. So in this point, they're spending too much auto. Too much is going out and not enough is coming in. So the budget deficit. So the government need to get some money from somewhere because they're spending more than they're getting in, okay? Their books don't balance. So the government decide we're going to borrow money. So they're going to, the government needs to borrow money, okay? So how do they borrow money? Well, what they do is they say to all these people, these people, look, look, people, can I borrow your money? These, this is you and me and whoever else. Strange looking people. Yeah, there we are. Look, doesn't matter, but these are just the normal people. So they say, government says, can we borrow these people's money so that we can spend more because we haven't got enough money. Now these people aren't just going to give the government money for nothing. So the government came up with a scheme called premium bonds. It's like a government bank. Okay, so all these people now save money into premium bonds, okay? They give their money now they give their money not because they love the government and they want to help the government out. They give their money because every month they don't get interest on the money. Every month they have the chance to win a prize and they can get their money back at any time. Okay? It's very safe because it's a government back scheme. It's very safe. So they can get their money back at any time. They don't get interest, but they can win a prize. Every month they have a chance to win a prize, okay? And because lots of people put their money in, lots of individuals put their money into premium bonds, the government can use that money that's in there and spend it on public services. They've borrowed this money. The government. Does that help at all or not? Someone use this money as a way of borrowing to pay for a public services, public what's miss? Public services? You know what public services are? Schools, hospitals. Public goods, Yeah, public goods, anything at all that the government spend basically what it is. The government have run in a budget deficit. They haven't got enough money in this situation. There's not enough tax coming in and they're spending too much money on public goods, public services. Okay? So they need to get some money from somewhere. The government doesn't have many choices. So the government kind of can borrow through guilt or bonds or whatever. Or one way the uk government does it is through premium bonds. It's like a government bank. They set up their own type of bank. People put money in every month. Those people get a chance to win some money. And the government has use of those funds. They can then borrow the premium bond funds and spend them on public goods. So Yeah, I know the government do not does not have enough money. So and it has to borrow money from the public. Yeah so so it will encourage people to save money in this bank and they can take it back for every time. Every month they can every month they can take a prize. So they can win. They can win a prize. Yeah. What's mean of so what's this? Yeah, look, anything between 25 pounds and 1 million pounds. I mean, what's this price? Prize money. Money. Okay, okay, we money. Yeah. So you get a little note. Hang on, let me try and find it. I'll show you. Wait, let me see if I can log onto my premium bonds. Wait. I'll show you. Oh. Just trying to remember my number. There you go. I can't log in, but look, so each you can you can put your number in and it tells you you've ₩50 pounds in November. So each month you can log in and some months you win lots. Some months you don't win very much and some months you win nothing. And the reason they do it like that is they don't pay you interest. So you know, normally in a bank account you would have interest, you would get interest paid to you for savings. They don't do that in premium bonds. You get no interest. So if you put 10000 pounds in, you bought 10000 bonds for ten years. When you got it out at the end, you would still have 10000 pounds. You don't get interest. But every month you might have won these prizes. And most, if you have quite a few premium bonds, most months, you win just different amounts. It's just a different way of rewarding people for saving. Warning people for saving and when they in this period of saving, I mean this month, people can the government can use this money to the public services, correct? They can borrow the money of the people. Yeah and the cost to the government authority wing, that money is the price funds, the money they give in prizes, the cost. Yeah because obviously if you borrow money, there's a cost, isn't there? If you went now and took out a loan, therebe an interest cost. So borrowing money costs you money. You pay interest, don't you? So the government can't just have the use of my money or your money for no cost. So their cost, their price of borrowing money is the prithat they give people, look, let me borrow your money and you've got the chance of winning this prize. So the cost to the government will be the prizes they give out each month. No, yes, maybe. I mean, all you need to know really is this. Something like. That's probably about as much as you would need to know about it. Yeah, so maybe just screenshot that. So you've got that. Financial prices exchange for financial prices Yeah money. So there's no interest rates, no. To save in. There's no interest rate to save in. And every month you can get some rice. Oh, okay. Yeah, it's just a do you know what it is? It's a just slightly more fun way to save. So I think it's quite fun. For me as a person and for the government, it means they've got access to this money and they could use it you know to whatever that's the way of the government borrowing money. But if you can get that link to work, itshow you okay. Any other any other bits you want to go through? No, no, just read me about right. Okay, okay, let's have a think then. I want to open her. Oh, nice and all of it. This one mp. And that's gci C. I was going to say, okay, I'm just saying because I haven't got an exam, I'm just trying to find an nl exam for to have a little look at. I know that's business. So right, let me find one then let me go on there. I was just seeing if there was one already on that system. So economics. So you have a look at. So you've done term one. Let me see if I'm find one. Term one exquestions there. 嗯。Oh, look at this. Look at this lovely thing. This is nice. Is there any topics youlike to go down through? I like this one as well. Right. I found all the topics or a level questions split by topic, what you are, production possibility, frontier and opportunity costs, positive and normative statements, types of economies, consumer producer, service demand and supply, specialization elasticities, externmarket failure. So I mean, I should choose one chapter. Yeah, which one? You Hanon, let me just show you. I don't know. Let me share my screen, ignore your growth and g on. See if I've got that. These are the ones I've got. Hold on, wait that I've found. Wait a minute. Was economic growth term five put term one? Theme one might be because, look, wait, sec, I'll have a look at theme two in a minute. Look at this for every paper. Economic growth. Ws, let me search. Okay. Unit what unit is economic growth? Unit two, maybe? No, it hasn't done that now. That's just given me the papers. Edit out. Hang on. No, that's just giving me papers. A minute. Same one. 23. I've got all these like let me show you. That way. Look. These and then you can can you see this by the lie, Jackson? Can you see what I'm looking at? Yeah. Yeah. Okay. So you can then choose it. Look, and then we get all the questions on that one topic, all the exam questions. This is very good. So what I looked at a minute ago, that's theme two. But when you go into theme three. No, we don't want that. We want this when we go into thethree. Sorry, three, two theme one was nice. Look, it was all these topics. Can you see normative positive consumer producer surplus, specialization, market failure, externality subsidies, indirect tax, rational and rational behavior? But what we went into. Beam two. I know it's. Done it now, right? What did you want? A economic growth you wanted? So what you said, Yeah, Yeah, let's go. Okay, let's go. Let's go. Every question. That's ever come up on economic growth. Let me download it, are. There. Oh, hello. I don't know. I've done something to my camera now. If I've done to my camera, Oh, my know, it's back on that. Right. Let me get this on here then, you comic. Right uploin there. It's like 100 pages what it is. 25% stinabout it. Page hundred five my gosh, 212 pages. Okay, brain and gear, then let's go. From the data in the graph above, which one of the following may be ed duced means which one of the following is or can you work out is okay? So which one of these is France? You've got control. So you can go up and down as well because you might want to go up and down as you read them. So have a look. That's its rate of inflation is lower than Germany y's in 2017. To have a look at the graph. So the graph is about GDP and about purchasing power. Power. Got you able to control it, Jackson, to move it up and down? All right, you want to move it up and scroll it up and down so that you so you can have a look at there. Sorry. So you can have a look at there. One of the following may be deed frrate of inflation over the months in 2017. Read what it's about, though. Read what the graph is about. Read the title of the graph. Very important. So which of the following may be deduced so so that France is lower than Germans in in 2017? That is a. Right off the inlation. Now look look, this is the title of the graph. P purchasing power parties, GDP at purchasing power parties. So it's about GDP. Yeah. So does it say anything about that's not relevance with inflation? Inflation, that is purchasing power, not GDP. GDP is economic growth. So dermas GDP is smaller than franever year. GDP lower than Yeah. Maybe that is it's small. It's always higher than friends, always the hhigher than Yeah. Good in every year that France GDP fell compared to the previous year, full German GDP in every year that France GDP fell. Comes down what it's asking. So every time Germany went down compared to the previous year. So in this one, then France did as well. Germany fell here, France did as well. So Yeah, that's. See, in every year that fraoh frad's anger. Oh, and where at did old frads? Did it fall? Any others? Frads, no, I think the graph didn't print very well because, look, I think this meant to be like a White bar like this. You know next to it to represent franance. I think the graphs meant to look like that. Basically sorry, very badly drawn graph. Yeah, 2.64, 2.68, 66, 68, 81, 85 up and down frpeople feel full compared to the previous year gerams did to. And d the gdboth Germany and France fell between 2015 and 2016. No see. Yep, good. Good, very nice. Excellent. Next. Percentage change in Germany's nominal GDP from 2016 to 2017. Percentage change Germans, nominal Germany from the graph using the graph 2016, 2017Germany okay 3.69, the percentage change 3.69-3.5 divided by 3.5 times of 100. 5.43%. Lovely. Explain one reason why purchasing power parties are used. Can you remember what purchasing power parity was? It's a measure of exchange rates, not quite exchange rates, sort of. So what is that? And let me. Oh, no, that wasn't why I went this. I'd copy something else. Remember, it was an alteration on the exchange rate, wasn't it, to tell you how much. First of buying a basket of comparable goods in different countries. Yeah. Can you remember it was the slight alteration of the exchange rate. So why would they use purchasing power parties? Why would why would anybody use it? Why is it good? Because it is equal because it is because equal and common because it it subject sorry o object is a basket of goods and that can compare different countries purchasing power. Yeah, Yeah. And I tell you what it does, it makes. It makes it more accurate because it would be like if I said, Oh, you know, the average cost of living in America, sorry, the average wage in America is this, and the average wage in somewhere really poor is this. But didn't look at the purchasing power parity. You might think somebody that only earns $500a month in, I don't know, somewhere in Africa is really poor. And they're not poor because their purchasing power is so high in that country due to the relative sort of purchasing power. So it's used to make more accurate comparisons between especially rich and poor countries. Good. Uk wheel gross vproduct annual percentage rate real you GDP with reference to the chart of calculate real. Oh, what did it say? Oh, okay, okay, okay. Sorry, I'm not being very sensisible in reading the questions maquestion. Have a look, see what you think. So this shows. The percentage change. And then this is the total real. GDP in 2016 was 200 million. With reference to the chart above, calculate the total GDP for 2017. So you've been given this one. You've been told that there's this growth just drawn over it. The growth is this. So from this to this, the growth is that you now know this is 200 million. So you need to calculate 2:17. So to the real GDP in that in 2020 16 is one is 200000 million 1.7. Just 1s. I'm just going to get the door. You work that out, and I will 1s. Sorry, fine. Did you work it out? 18. I read it down. I read it down. One one, eight, eight, eight, eight, 8.9. Million million no it needs lot up to increase you've decreased it have you okay that is increase Yeah. 1.70101017 plus one. Times 200000. Two, Oh, three, 4 million. Sounds good. That's sounds good. Very good. Okay. Explain the term real gross domestic product. G. D P. Okay, so so first ten groups. So firstly, gross domestic product GDP is the total productivity in this country. And the real gross domestic output is real GDP, which means the total, the total productivity in this country, which will influence by inflation, perfect with inflation taken into account. Very good. Very good. Yes, very nice. With reference to the chart on page two, which one of the following is correct over the period shown? Which chart this chart do we assume? Yeah, assume. So hang on, let's just see what the question is. Yeah. So you're going to have to keep scrolling back and forth to that other chart. So you need to go back to this chart and have a look. So you going to have to go up and down. So you do it. You do the up and down a reference on the Charon page two. Which one of the following is descriover the period show? Okay, have part two. Which one is part? That is part two. Yeah which one is the highest? Which one is highest? Which 2000 and 2014? No, no, no, no, no, of course not. I'm sorry, sorry. I was like that. You know, my big line just enroin 2015. There's no relevance. There's no relevance with inflation. The uk economy grew at the fastest rate in 2014. The uk economy was recession in 2015. Oh. I choose. This one see Yeah 43Yeah very good because the rest basically we don't have enough information about really. The Hong Kong Oh, I can't say this, that whole macu bridge was the world's larlongest sea bridge. It reduces the journey time from Hong Kong to zve, I don't know, from four hours to just 30 minutes. It costs the equivalent of, well, some idiot me has drawden through it 108, you 18.8 billion and was government funded. Which of the following would most likely to solve a negative output gap problem in a domestic economy? So following like solve a negative output, get a problem in a domestic economic because Yeah I see when an economic extra output, real GDP is less than its potential output, extra output is the less simple ayour output. So basically it's like on the ppf, it's like here, you know it's not using its full production capacity. Oh. So you want to use resources such as labor, our capital, etcetera. You can rule out anything where money goes out of the country. You don't want to be putting money out of the country if you've got what you don't want to anyway. Really, it's never good to put money out of your country. So you can rule out a couple of them. These question Hong Kong, hai Mao, maco. Which is the worllongest sea bridge. It reduces the journey time from Hong Kong to zhigh I for four hours to just 30 minutes across the equivalent of $13.8 billion and was government funded. So is there any relevance with this question? Not a lot relief to be honest, apart from go back to the options relevapart from Yeah, Yeah, Yeah, Yeah, Yeah it is that one transport. Yeah, it is that one. These these two are no, because they're about money going out of the country. This one, income tax is kind of not really relevant because why would you like you wouldn't need any more tax revenue wouldn't solve you know using more labor and using more capital and everything. If anything, increase in income tax may discourage people to work. So Yeah, it's this one, government spending on public transport. The table below shows the uk's gross national income between 2014 and 2017 to find the term gross national income. Gross national income, gross national income G N I, gross national income. So what's that to me? It's GDP plus something. GDP plus GDP plus the income which this country earns over. Yes. Very good. Very good. Which one of the following represents the ratio of gross national income in 20015 to gross national income into that? Well, Oh, okay. I didn't see the table there. I thought, goodness me, how are you meant to know that? Okay. Which one of five represent the ratio of gross national income in 20015 to gross national income in 2017? So look at the two. So 15 to 17 and get it in a ratio form ratio ratio of this two. Yeah, let me do it. It didn't come out exact. When I did, it had to be rounded. So if yours hasn't come out exact, just round it to the nrest answer. Yeah, I know. See. Yeah, very good. I always see. Well, there you go. If in the exam, you really don't know, if ever you think I just don't know, the answer is c. I don't like the next numbers using 2014 as the base year. Calculate the index number for 2016. You're advise to show you're working. So it's the opposite of the ratio, isn't it? So you basically need the relationship between 2014 and 2016. 2014 three 60. So now we're using. To let me see the question again. Calculate index number for. So what means of index number? It's like the, it's basically ratio. It's like the, the, the if you were, what's it increased by? What are you, you know, what are you, what's the definition of an index number? If you were comparing them like for like how much has it gone up by going on. Let me find you. If that is ratio one, eight, zero, six, four, six, eight, divided by Yeah, Yeah, Yeah, you're doing the right thing. One, one, six, not point eight, sorry, not point nine, four. What ones did you just use? Did you use the right years? I got one point. Did I use the right ears? I got 1.6. I got one point, 1.06. What is it? 14 and 16. So I did, so I did the 19. So if you were, if you were, had to make them the same effectively. So, 19, two zero, 106 divided by 18. I might have done it wrong though. Hang on, I use one, eight, zero, six, four, six, eight divided by 19, two o, one, one, six. Other way round because theybluyou a negative number, right? You got I got 1.06 because the uplift, this one is 1.06 more than this one. So I did the big number divided by the literal number. Obviously times 100. Because this the base of this is 100, so 1.06. So the answer is then 106.4. We'll look at index. Let me add index numbers. Let me write down index numbers. You have a little look at index numbers because they're likely to they're not. They're very simple. You like maths. Have a look at index numbers. Okay, okay. It's just it's just the exact sort of opposite ratio. You just find a number that one would be the baseline and one like what's the it's it's like taking into account inflation. It's the numerical way to do that. You would say, well, if inflation is this, then the index number is this. Anyway, I will see you. I think I see you Monday next. I think I'm not sure. I always look every day now. I don't know. I think I see you on Monday next. Yeah, yes, I do. We haven't got one tomorrow. So you might be doing something exciting tomorrow. So hopefully you are and I will see you on Monday. Okay. Bye.