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Maynooth University issues a campus smartcard called 'MyCard', to all its students - Leaving Cert Economics - Question 5 - 2019
Question 5
Maynooth University issues a campus smartcard called 'MyCard', to all its students. This allows users to purchase on campus without using cash. Outline one advantag... show full transcript
Worked Solution & Example Answer:Maynooth University issues a campus smartcard called 'MyCard', to all its students - Leaving Cert Economics - Question 5 - 2019
Step 1
Outline one advantage of a non cash-based method of payment for Students
Answer
One significant advantage of a non cash-based method of payment for students is its convenience. With a smartcard like 'MyCard', students do not need to carry cash, making transactions quicker and simpler, especially in a busy campus environment. This convenience can lead to more efficient purchasing during classes and events.
Step 2
Outline one advantage of a non cash-based method of payment for University
Answer
For the university, a non cash-based payment method reduces the risk of theft associated with cash transactions. This means fewer incidents of lost funds and lowers overall security concerns, thereby enhancing the safety of financial operations on campus.
Step 3
Outline one advantage of a non cash-based method of payment for Banks
Answer
Banks benefit from a non cash-based payment method as it opens up opportunities for developing new or improved banking technologies. This modernization can lead to greater efficiencies, such as faster service and reduced operational costs in managing cash flow.
Step 4
Explain how an increase in interest rates is likely to affect Households
Answer
An increase in interest rates often discourages borrowing, leading to increased mortgage repayments for households. As costs rise, disposable income can decrease, making families more cautious with spending. This decrease in disposable income can further reduce overall consumer spending in the economy.
Step 5
Explain how an increase in interest rates is likely to affect Firms
Answer
For firms, increased interest rates raise the cost of production since borrowing costs to finance operations become higher. If these costs rise, businesses may pass these expenses onto consumers, resulting in higher prices, which can decrease competitiveness in the market.
Step 6
Explain how an increase in interest rates is likely to affect The Irish Government
Answer
The Irish Government will face higher costs for servicing the national debt due to increased interest rates. As borrowing becomes more expensive, it could result in a reduced capacity for public investment and might hinder overall economic growth, especially if tax revenues decline.
Step 7
State and explain two possible reasons for the closure of some post offices.
Answer
One reason for the closure of some post offices is to decrease operational costs. By closing underperforming locations, An Post can reduce expenses associated with maintenance and staffing. Another reason is a decrease in the usage of services, as more consumers shift towards online alternatives, reducing demand for traditional postal services.
Step 8
Outline one economic effect which the closure of the post offices may have on Customers of the Post Offices
Answer
The closure of post offices may lead to customers experiencing a loss of service or inconvenience. They may have to travel further for postal services, which can result in added time and transportation costs, severely impacting those in rural areas with limited access.
Step 9
Outline one economic effect which the closure of the post offices may have on Employees of the Post Offices
Answer
Employees of post offices are likely to face job losses as a direct consequence of closures. Those who are laid off may struggle to find similar employment opportunities, leading to increased unemployment in the local area and potential social challenges.
Step 10
Outline one economic effect which the closure of the post offices may have on The Local Community
Answer
The local community might experience reduced economic activity due to the closure of post offices. As these offices serve as local hubs, their closure can lead to fewer job opportunities and diminished services, ultimately impacting local businesses and community engagement.