1997 ACTUAL 110EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS
ALREADY GRADED A+ GUARANTEED
PASS!
"Run on the Pound - CORRECT ANSWER=>A term describing a rapid fall in the value of the pound
in international currency markets, especially in relation to the US dollar"
"Devaluation - CORRECT ANSWER=>Reducing the exchange value of the pound making British
products cheaper increasing exports. However Britain relied on imports and the cost of living
would dramatically increase placing crippling financial strain on lower and working class people,
meaning Wilson had initially ruled out devaluation as these people were the backbone to the
Labour support and devaluation worsened previous Labour Governments"
"Deflation - CORRECT ANSWER=>Taxes rise and Government expenditure decreases, taking
money out of consumer and businesses pockets and thus decreasing the imports bill and the
gap between imports and exports."
"Examples of Economic policy - CORRECT ANSWER=>- National Plan: Department of Economic
Affairs and NBPI made, planning annual growth of 3.8 and exports of 5.25 but failed because
the treasury didn't cooperate with the DEA as it saw itself as the governments economic
ministry, government spending and investment undermined by deflation, and the NBPI had no
actual power over wage controls
- High Defence and Research Expenditure: more money spent on technology and military
coinciding with NATO membership, this drew money out of other sectors of the economy
- Investment and Lack Thereof: improved transport i.e. railways and motorways in the north,
however sustained improvement in industry were undermined by deflation methods that cut
back government spending"
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,"How successfully did the Labour government deal with industrial relations? - CORRECT
ANSWER=>Wilson hoped to better industrial relations but believed strikes disrupted
performance and that relations between government and unions had to be regulated to achieve
control on prices and wages. Unions had large power within Labour due to their block vote at
Labour Conferences, and considerable power among Industry due to closed shop (workers
would only be employed if they joined unions) and strikes could cripple industry. In Place of
Strife had alienated and frustrated the left of the Party and the Trade Union Congress as it
placed limits on the ability to strike etc and 50 Labour MPs rebelled when it was debated in
House of Commons. Failure of In Place of Strife led to fall of Labour signalling failure to deal
with Trade Unions who were gaining too much power"
"'In Place of Strife' - CORRECT ANSWER=>in order to deal with press criticism of Wilsons inability
to deal with trade unions, he asked leftist Barbara Castle to establish a Ministry of Employment
and Productivity and to reform industrial relations. She published 'In Place of Strife' in 1969 and
the principal proposals were; people have the legal right to join a union, government could hold
a ballot before a strike if there was serious threat to national interest, government could order a
return to work, disputes between unions could be settled by a commission, financial penalties
for not obeying commission, and the right to claim compensation or get job back if unfairly
dismissed. the restrictions on strikes, the ability for the government to force strikes to end and
restrictions on union communication frustrated the TUC and the left within the Labour Party"
"Was the 1970 election result due to Labour weaknesses or Conservative strengths? - CORRECT
ANSWER=>- Wilsons Complacency- opinion poll of 51% made his victory seem assured and he
became complacent despite poo trade figures being published before the election
- Disillusionment of Labour Supporters- Barbara Castle 'an undercurrent of detachment among
our own activists and party members'. Party Membership had fallen and especially among the
left it was believed that Wilsons premiership was too right wing
- Failure of 'In Place of Strife'- the failure of IPOS suggested that trade unions had more power
than the government and signalled failure to transform economic failure
- Conservative Policy Proposals- industrial relations law could reduce strikes and inflationary pay
demands, less state intervention, attempts to control prices and incomes by law would end and
Britain would apply again to the EEC
- Edward Heath's Leadership- Heath attacked Labours economic record of Labour arguing
inflation along with unemployment rose. He sacked Enoch Powell from his cabinet who was
against the commonwealth and race relations legislation, looking progressive and liberal doing
so."
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, "How successful was Edward Heath as Prime Minister? - CORRECT ANSWER=>Heath wanted less
state intervention in prices, wages, and the economy arguing about economic policies had been
a failure. He also wanted to channel money into the unemployment issue and regenerating run-
down parts of the country. However, inflation had doubled per annum, unemployment had
stagnated and days lost to strikes increased, and left the surplus balance of payments inherited
from Wilson into a deficit. Heath had gained a majority in Parliament on EEC membership saying
European competition could stimulate growth and modernisation. Pompidou argued Britain had
to join on French terms annoying eurosceptics in Parliament. Industrial Relations Act 1971
resembled IPOS and thus angered unions further and led to break down in relations between
unions and Conservatives. Heath was forced to nationalise Rolls Royce, aid industries and
growth deprived areas, and regulate prices and wages, this is called Heaths U-Turn (setting out
to have less state intervention but actually causing more state intervention). Middle Eastern
ager at Western support for Israel led prices for oil to quadruple and miners action against the
government led to the Three day week, where electricity to companies only given on 3 days,
50mph on all roads and television off after 10:30pm. He called general election hoping to form a
anti labour coalition but failed and Wilson became PM again"
"Edward Heath and Industrial Relations - CORRECT ANSWER=>- Industrial Relations Act 1971:
people had legal right to choice to join/not join union, National Industrial Relations Court and
Industrial Relations Commission established, Unions required to register with NIRC and IRC to
improve recognition, members of registered unions enjoy protection against unfair dismissal,
and government had power to hold ballot on strikes and return to work. similar to IPOS and TUC
encouraged unions to not register and unions worked against conservative government
undermining the Act
- Inflation rose making unions demand wage increases to prevent living standards falling
- Miners Strike Jan-Feb 1972 was initiated by coal miners demanding 47% pay increase that was
well above the governments wage policy, being offered an 8% increase. The UK declared a state
of emergency as there were regular power cuts and a settlement was agreed with a large pay
increase. This encouraged more strike behaviour as they saw the miners were successful and
undermined the government and and the Industrial Relations Act
- Oil Price Shock 1973 and 3 Day Week: Middle East quadrupled price of oil as the West had
shown support of Israel and miners began an overtime ban and soon started striking, State of
emergency announced and three day week started"
"How effectively did Wilson and Callaghan deal with the problems Britain faced from 1964 to
1979? - CORRECT ANSWER=>faced with issues of minority in Commons, relations with the Trade
Unions, changes and divisions, and economic issues
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