Economics class: Nissan unveils first UK battery factory in £1bn Sunderland plan
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Circular flow of income, multiplier, AD & AS, opportunity cost
Click to read the article below and then answer the questions:
Nissan unveils first UK battery factory in £1bn Sunderland plan
Identify the injections (J) and withdrawals (W) from the circular flow of income.
Explain the multiplier process.
The article states that jobs will be created at the factory and in the wider supply chain. Using an AD/AS diagram, analyse the local multiplier effects of Nissan’s £1bn investment in the north east economy.
‘The government has given about £100mn of support to the Nissan project at Sunderland, according to people briefed on the discussions.’ Evaluate whether this is an appropriate use of taxpayers’ money.
Gavin Clarke, Emmanuel College
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