2.5 Externalities

Question 1

What is gross domestic product

Answer 1

The value of goods and services produced by an economy over a specific period

Question 2

What is the business cycle

Answer 2

The sequence of slump,recovery,boom and recession
The regular pattern of ups and downs in the economy
Measured in the changes in GDP from one quarter to another

Question 3

What is Inflation

Answer 3

Is a sustained increase in the average price level of a country

Question 4

What is deflation

Answer 4

Deflation is a period when the general price level falls

Normally associated with a significant reduction in economic activity

Question 5

What is credit

Answer 5

Is about borrowing- owing money to others for a period time

Question 6

What is an interest rate

Answer 6

Is the cost of borrowing money or the return for investing money

Question 7

What is unemployment

Answer 7

The number of people able,available and willing to find work and actively seeking work - but not employed

Question 8

What is an exchange rate

Answer 8

An exchange rate is the price of one currency expressed in terms of currency. It determines how much of one currency has to be given up in order to buy a specific amount of another currency

Question 9

What is emerging market

Answer 9

Is used to describe a country in the process of rapid growth and industrialisation

Question 10

What is economic growth

Answer 10

Economic growth is an increase in the value of goods and services produced by an economy over time