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The increasing worldwide consumption of oil is causing problems for economies - Leaving Cert Economics - Question 8 - 2007
Question 8
The increasing worldwide consumption of oil is causing problems for economies. (i) State and explain TWO economic reasons why the worldwide consumption of oil is in... show full transcript
Worked Solution & Example Answer:The increasing worldwide consumption of oil is causing problems for economies - Leaving Cert Economics - Question 8 - 2007
Step 1
State and explain TWO economic reasons why the worldwide consumption of oil is increasing.
Answer
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Economic Expansion: Countries like China have been experiencing significant economic growth. As economies expand, demand for oil-related products increases due to higher levels of industrial activity and consumer consumption.
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Increase in Vehicle Ownership: With rising incomes, more consumers are purchasing vehicles. This trend leads to greater oil consumption as more vehicles on the road translates to higher demand for petrol.
Step 2
State and explain how EACH of the following could help to reduce this problem: Consumers;
Answer
Consumers can reduce their oil consumption by:
- Adopting Energy-Efficient Practices: By using public transport, cycling, or carpooling, consumers can minimize their reliance on oil.
- Choosing Alternative Energy Sources: By investing in renewable energy for home use, such as solar panels, consumers can lessen their dependence on fossil fuels.
Step 3
State and explain how EACH of the following could help to reduce this problem: Business Firms;
Answer
Business Firms can help reduce oil consumption by:
- Investing in Technology: Firms can improve production efficiency through research and development to create energy-efficient technologies that use less oil.
- Implementing Waste Reduction Strategies: By reducing waste during the production process, firms can lower overall oil usage and improve resource efficiency.
Step 4
State and explain how EACH of the following could help to reduce this problem: The Irish Government.
Answer
The Irish Government can take actions such as:
- Creating Educational Campaigns: Implementing campaigns to promote energy conservation and alternative transportation methods can help inform citizens about reducing oil use.
- Implementing Tax Incentives: By providing tax benefits for companies that adopt renewable energy practices, the government encourages reduced consumption of oil.
Step 5
Explain the underlined term: infrastructure.
Answer
Infrastructure refers to the fundamental facilities and systems serving a country, city, or area. This includes roads, bridges, water supply systems, and communication networks, which are essential for the functioning of the economy and society.
Step 6
State and explain TWO reasons why improvements in infrastructure are important for the Irish economy.
Answer
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Improved Efficiency: Enhanced infrastructure leads to more efficient transport systems, reducing delays in logistics and thereby lowering operational costs for businesses.
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Attracting Investment: A robust infrastructure attracts foreign investment, as companies look for locations that can efficiently service their operations.
Step 7
Outline TWO areas of infrastructure which you consider need further investment and explain the reasons for your choices.
Answer
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Public Transport: Improving public transport systems can reduce traffic congestion and lower pollution levels, benefiting both the environment and public health.
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Waste Disposal: Investing in waste disposal systems is crucial for managing urban waste properly, promoting sustainability and protecting public health.
Step 8
State and explain TWO possible advantages of this development for the Irish economy.
Answer
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Reduced Traffic Congestion: A Metro system can significantly decrease the number of cars on the road, easing traffic congestion.
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Economic Growth: The construction of the Metro will create jobs during the construction phase, as well as attract businesses to areas serviced by the Metro.
Step 9
State and explain TWO possible disadvantages of this development for the Irish economy.
Answer
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High Initial Investment Costs: The upfront costs for constructing a Metro system can be substantial and might lead to financial strain on public funds.
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Disruption During Construction: The construction process may cause significant disruption to local businesses and the daily activities of residents, affecting their quality of life temporarily.