2.5 External influences Flashcards
appreciation of a currency
a rise in the value of a currency
base rate
the rate of interest around which a bank structures other interest rates
boom
the peak of the economic cycle where GDP is growing at its fastest
consumer price index
a common measure of price changes used in the EU
deflation
a fall in the general price level, also used to describe a situation where economic growth is falling or negative when inflation is falling
depreciation
a fall in the value of a currency
downturn
a period in the economic cycle where GDP grows, but more slowly
economic, trade/business cycle
regular fluctuations in the level of output in the economy
exchange rate
the price of one currency in terms of another
fiscal policy
using changes in taxation and government expenditure to manage the economy
government expenditure
the amount spent by the government in its provision of public services
gross domestic product (GDP)
a common measure of national income, output or employment
index linked
the linking of certain payments, such as benefits, to the rate of inflation
inflation
a general rise in prices
monetary policy
using changes in the interest rate and money supply to manage the economy
recession
a less severe form of depression
recover/upswing
a period where economic growth begins to increase again after a rececssion
slump/depression
the bottom of the economic cycle where GDP starts to fall with significant increases in umemployment
taxation
the charges made by government on the activities, earnings and income of businesses and individuals
anti-competitive/restrictive practices
attempts by firms to prevent or restrict compitition
barriers to entry
obstacles that make it difficult for new firms to enter a market
collusion
two or more businesses agreeing to a restrictive practice, such as price fixing
contract of employment
a written agreement between an employer and an employee in which each has certain obligations
discrimination
favouring one person over another
employment tribunal
a court that deals with cases involving disputes between employers and employees
national minimum wage
a wage rate set by the government below which it is illegal to pay people at work
unfair dismissal
the illegal dismissal of a worker by a business
cartel
a group of businesses or countries which join together to agree on pricing and output in a market in an attempt to gain higher profits at the expense of customers
colluding
in business, where several businesses or countries make agreement among themselves which benefit them at the expense of either rival businesses or customers
market structures
the characteristics of a market, such as the size of the barriers to entry to the market, the number of businesses in the market or whether they produce identical products, which determine the behaviour of businesses within the market
