Economics Class

2. By Emma Jones, Kate Jones, Emma Roberts, Sammi Watson, Sophie Elstrott

5. ★Yemen won independence from
Britain after eight years of civil war and
two years of Marxist-guerilla warfare.

6. ★Yemen won independence from
Britain after eight years of civil war and
two years of Marxist-guerilla warfare.
★Yemen became the People’s
Democratic Republic of Yemen in 1970.

7. ★Yemen won independence from
Britain after eight years of civil war and
two years of Marxist-guerilla warfare.
★Yemen became the People’s
Democratic Republic of Yemen in 1970.
★Yemen has a population of about 20
million people.

8. ★Yemen won independence from
Britain after eight years of civil war and
two years of Marxist-guerilla warfare.
★Yemen became the People’s
Democratic Republic of Yemen in 1970.
★Yemen has a population of about 20
million people.
★The current President of Yemen is Ali
Abdullah Saleh.

9. ★Yemen won independence from
Britain after eight years of civil war and
two years of Marxist-guerilla warfare.
★Yemen became the People’s
Democratic Republic of Yemen in 1970.
★Yemen has a population of about 20
million people.
★The current President of Yemen is Ali
Abdullah Saleh.
★Major exports include oil, honey and
coffee

12. ★Illegal imports (smuggling)

13. ★Illegal imports (smuggling)
★General health of population is
extremely poor

14. ★Illegal imports (smuggling)
★General health of population is
extremely poor
★Dearth of government
financing

17. ★ International Monetary Fund
★Suspended financial aid due to Yemen’s failure
to meet the fiscal policy they proposed to reduce
deficits and increase revenue
★ World Trade Organization
★Yemen is currently trying to become a member
of the WTO
★World Bank
★Has given support to Yemen since 1991
★Supervises price reforms
★Is aiding Yemen in: health, education, water
resource management, infrastructure and public
sector management
★Proposed to cut 1/3 of the $2.4 billion support
package if economic reforms are not seen in
Yemen

20. Step 1: Export-led Growth
Goal: Export more oil and honey
More exports would:
• Increase Yemen’s revenue
• Decrease Yemen’s large current account deficit
• Cause economic growth/increase GDP
(Growth domestic product)

21. Step 1: Export-led Growth
Goal: Export more oil and honey
More exports would:
• Increase Yemen’s revenue
• Decrease Yemen’s large current account deficit
• Cause economic growth/increase GDP
(Growth domestic product)
LRAS SRAS
Price Level
P2
P1
AD
AD
Y1 Y2
Growth Domestic Product

22. Step 1: Export-led Growth Step 2: Government Subsidies
Goal: Export more oil and honey Goal: Give money to poor for start of small
businesses
More exports would:
• Increase Yemen’s revenue Subsidy: a sum of money granted by the
• Decrease Yemen’s large current account deficit government or a public body to assist an industry
• Cause economic growth/increase GDP or business so that the price of commodity or
(Growth domestic product) service may remain low or competitive
LRAS SRAS Subsidies would:
• Provide job opportunities, decreasing
Price Level unemployment rate
• Increase supply of domestic products, making
P2
them cheaper than contraband
• Assist development
P1
AD
AD
Y1 Y2
Growth Domestic Product

25. Our solution addresses the U.N. Millennium development goals number 4 and 5

26. Our solution addresses the U.N. Millennium development goals number 4 and 5
Goal #5: Improve maternal health
Goal #4: Reduce child mortality

27. Our solution addresses the U.N. Millennium development goals number 4 and 5
Goal #5: Improve maternal health
Goal #4: Reduce child mortality
Subsidies would increase the standard of living of the Yemenites.

30. Honey treats most diseases in Yemen.
One study “found that the sticky
substance eliminated the need to re-
stitch wounds and expose the patients to
additional surgery” (Yemen Observer
Newspaper).
Yemen produces about 1,706 tons of
honey a year.
Increasing the honey exports bring in
millions in revenue for Yemen.

31. Honey treats most diseases in Yemen.
One study “found that the sticky
substance eliminated the need to re-
stitch wounds and expose the patients to
additional surgery” (Yemen Observer
Newspaper).
Yemen produces about 1,706 tons of
honey a year.
Increasing the honey exports bring in
millions in revenue for Yemen.
Enjoy a honey stick on us, and experience Yemen’s cultural healing power!