basic terms Flashcards
PSNCR
government debt/borrowing for the year (1)
when annual government expenditure exceeds revenue/ annual
deficit (1)
government borrowing to finance a budget deficit
National debt
accumulated/total/sum of government borrowing over time
‘wage stagnation’
Wages are not rising
Describe what is meant by “GDP growth”.
“Gross Domestic Product growth” is an increase in the value of goods and services produced in an economy within a period of time.
Describe what is meant by “real terms”.
Real values are adjusted for inflation. (1)
This allows comparisons of values to be made over time without the effects of inflation
Describe what is meant by Scotland’s budget deficit.
A budget deficit refers to a situation in which the government’s outgoings are more than their incomings/ government planned spending is more than planned tax receipts. (1)
A budget is a plan for spending and revenue.
Describe factors which may have caused Scotland’s budget deficit to be
higher than the rest of the UK.
Government spending per capita in Scotland is higher than the rest of the UK/tax revenue is Scotland per capita is lower than the rest of the UK. (1)
Scottish government have devolved powers to adjust some benefits and have increased these
Increased capital spending eg:infrastructure projects/new Forth Crossing/Edinburgh trams.
Increased current spending eg: Public sector wages
Describe what is meant by the term “austerity”.
The measures taken by a government to shrink a budget deficit
Describe what is meant by “national debt”.
The total amount owed by an economy/country/
government
A deficit is when spending exceeds income
Describe what is meant by a ‘tariff’.
a tariff is a tax on imports/exports/goods traded internationally (1). It makes imports less attractive/more expensive or makes domestic goods more attractive (DEV) (1)
a tariff is a trade barrier
