2.2.2 Consumption (C) Flashcards
Consumer confidence
expectations about the future, including interest rates, incomes and jobs
Consumer durables
Products such as washing machines or computer screens that are not used up immediately when consumed and which provide a flow of services over time
Consumer spending
spending on goods and services
(Real) Disposable income
income adjusted for inflation after direct taxes and benefits
Household income
the combined gross cash income of all members of a household
Household wealth
The monetary value of assets – including property, shares, savings, and pension fund assets minus the total value of outstanding liabilities of households.
Income
A flow of money into factors of production
E.G.salaries paid to people in work,
Interest from savings and rental income from owning land/assets
Interest rate
The cost of price of borrowing, or again from landing.
Normally expressed as an annual percentage amount
Negative equity
When the value of an asset falls below the debt left to pay on that asset
Pension fund
Fund that pools employees pension benefits and holds them so that they can be paid at retirement
Personal allowance
The amount of income you can earn before you start paying income tax
£12,500
Precautionary savings
Saving because of fears of a loss of real income or rising unemployment
Saving ratio
The percentage of household disposable income that is saved rather than spent
Unsecured credit
Credit not secured by another asset – i.e. money borrowed on credit cards
Wealth
the total value of all assets owned by a party minus what they owe (liabilities)
