Consumer prices fell at an annual rate of 6.6% in October 2009, according to figures issued by the CSO - Leaving Cert Economics - Question 7 - 2010

The economic term related to the situation described in the question is ‘Deflation’. This refers to a decrease in the general price level of goods and services in an economy.

For individuals receiving social welfare, deflation may mean that the real value of their benefits increases, as the cost of living decreases. This could potentially improve their purchasing power, allowing them to afford more goods and services.

Savers may benefit from deflation as their savings will hold more value over time. However, if interest rates are lower than inflation rates, the real returns on their savings may not increase significantly.

Employees may face challenges during deflation, such as wage cuts as companies attempt to lower costs. This could also lead to increased unemployment rates as businesses may reduce their workforce in response to falling profits.

Savings refers to the portion of income that is not spent on immediate consumption. It represents money that is set aside for future use, which could be invested or saved in a bank.

One reason for the increase in savings could be consumer uncertainty about future economic conditions. Individuals may choose to save more in response to concerns about job security and financial stability.

One reason is that increased consumer spending can help stimulate economic growth as businesses see higher demand, leading to potential job creation. Another reason is that higher spending can lead to an increase in tax revenues for the government, which can be used to fund public services and social programs.

The 'black economy' refers to activities that are not reported to the government for taxation and regulatory purposes. An example of this could be a plumber fixing a washing machine for cash without reporting the income.

One reason for smuggling cigarettes into Ireland could be due to the high price of cigarettes, leading consumers to seek cheaper alternatives. Another reason is the inadequate security measures at borders, which may create opportunities for smugglers to operate.

One effect is the potential loss of tax revenues as smuggled goods evade taxation, impacting government funding for services. Another effect could be the increase in health-related costs associated with higher smoking rates, placing additional strain on healthcare services.