Sunday, 7 February 2010

European Economics: Statistics Standard Grade

Section 1. - Graphical Interpretation
Q1 (mandatory): Please read the following definitions, using this information and the graph below use one word to sum up the likely financial outlook for the UK, Spain, Greece, Ireland and Italy.
Note: Compound words are permitted
What Does Fiscal Deficit Mean?
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.

What Does Gross Domestic Product - GDP Mean?
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, usually calculated on an annual basis.

What Does Debt Mean?
Bonds, loans and commercial paper are all examples of debt. For example, a government may look to borrow £1 million so they can invest in infrastructure or go to war. In this case, the debt of £1 million will need to be paid back (with interest owing) to the creditor at a later date.

Supplementary question Q1a (optional): What does incompetent mean?

Original definitions courtesy of Investopedia
Chart hattip Olivetree Securities via Financial Times alphaville


  1. Does "Oh shit" count as an answer, cos that's the phrase that occurred to me when I saw the graph.

  2. Just apply for another credit card and max that one makes the world go round

  3. I think that you will find that the Olympic games in Athens 2004 have added somewhat to the bleak financial outlook of what is in all respects a third world economy....€9 billion (including the enhanced security measures demanded by the US) is quite a lot of keftedes as the say on the slopes of Mount Lykavitos.

    We have it all to come in 2010 but I'm sure Boris will sell off a few bendy buses to pay for the official hot dog stands.

  4. Having read Nikos' comment I wonder if that will happen to London?