The UK Economy

1
The UK Economy
Unit 16

• Facilitator Support Materials for The UK Economy

2
Unit Aim

• The aim of this unit is to develop the learners
  knowledge and understanding of the functioning of
  the national economy.

This unit is 20 Guided Learning Hours
3
Unit Description

• This unit gives the learner an introduction to
  how the national economy functions. Unit 15 is a
  pre-requisite to this unit - National Economies
  and their interaction with the Banks.
• The unit commences by looking at the National
  Income, what it is, the influences on national
  income, the equilibrium level of national income
  and how this may be achieved.
• Learners progress to review financial assets,
  liabilities and intermediaries that contribute to
  the operation of the national income and how
  funds are sourced and used in an economy.

4
Unit Description Continued

• The principles of public finance are considered
  in outcome 3,enabling learners to investigate
  taxation, government expenditure and budgets.
• The final outcome in the unit investigates the
  role and purpose of the national bank in the
  country of study, its purpose, development and
  function.
• By completing this unit, learners will be able
  to understand the economic commentaries that
  are seen in the quality non-specialist press and
  be able to comment upon them in an informed way.

5
Learning Outcome 1 Understand the National
Income

• Amplification of the Learning Outcome
• National Income income flow circular flows
  leakages injections multiplier influences on
  the national income equilibrium level

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Assessment Criteria for Learning Outcome 1

• Assessment Criteria
• 1.1 Explain the national income flow, circular
  flows, leakages and injections
• Open discussion with Learners
• 1.2 Discuss the equilibrium level of National
  Income
• Open discussion with Learners
• 1.3 Discuss the Multiplier
• Open discussion with Learners

7
Learning Outcome 2 Understand Financial Assets,
Liabilities and Intermediaries

• Amplification of the Learning Outcome
• Assets, Liabilities and Intermediaries national
  balance sheet flow of funds financial
  intermediaries development of financial systems
• Sources and uses of funds savings and loans

8
Assessment Criteria for Learning Outcome 2

• Assessment Criteria
• 2.1 Explain the content and meaning of the
  national balance sheet and the flow of funds
• Open discussion with Learners
• 2.2 Explain the role of financial intermediaries
  in the economy
• Open discussion with Learners

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Assessment Criteria for Learning Outcome 2
2.3 Explain how a typical national financial
system develops Open discussion with
Learners 2.4 Explain the main sources and uses
of funds in a national economy Open discussion
with Learners
10
Learning Outcome 3 Understand the principles of
Public Finance

• Amplification of the Learning Outcome
• Taxation equality, certainty, convenience,
  economy
• Government Expenditure principles role in
  economy
• Budget purpose methodology

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Assessment Criteria for Learning Outcome 3

• Assessment Criteria
• 3.1 Discuss the General Principles of Taxation
• Open discussion with Learners
• 3.2 Discuss Government Expenditure and its role
  in the economy
• Open discussion with Learners
• 3.3 Explain the purpose of the Budget
• Open discussion with Learners

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Learning Outcome 4 Know the role of the
National Bank in the Economy

• Amplification of the Learning Outcome
• Bank of England purpose role functions

13
Assessment Criteria for Learning Outcome 4

• Assessment Criteria
• 4.1 Describe the history of the National Bank
• Open discussion with Learners
• 4.2 Describe the National Banks role in seeking
  monetary and fiscal stability
• Open discussion with Learners

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Assessment Criteria for Learning Outcome 4

• 4.3 Describe the National Banks role as the
  lender of last resort
• Open discussion with Learners
• 4.4 Explain the National Banks role in note
  issuing
• Open discussion with Learners

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Appropriate Books

• Financial Economics, Book One The Banking Code
  (FSA), Chapter 1,3,5, pages, All

16
Appropriate websites

• www.bankofengland.co.uk/
• www.bba.org.uk/bba/jsp/polopoly.jspjsessionidaz3
  XEMccpMo_?d103
• www.fsa.gov.uk/
• www.hm-treasury.gov.uk/
• www.projects.exeter.ac.uk/RDavies/arian/origins.ht
  ml