Deck 3 (G-L)

Question 1

GDP per capita

Answer 1

The average level of GDP per head of population

Question 2

Globalisation

Answer 2

A process by which the world’s economies are becoming more closely integrated

Question 3

Government budget deficit or surplus

Answer 3

The balance between government expenditure and revenue

Deficit - expenditure > revenue
Surplus - revenue > expenditure

Question 4

Hot money

Answer 4

Stocks of funds that are moved around the world from country to country in search of the best return

Question 5

Human capital

Answer 5

The stock of skills and expertise that contribute to a worker’s productivity

Question 6

ILO unemployment rate

Answer 6

Measure of the percentage of the workforce who are without jobs, but are available to work, willing to work and looking for work

Question 7

Index number

Answer 7

A device for comparing the value of a variable in one period or location with a base observation

Question 8

Inflation

Answer 8

The rate of change of the average price level, the percentage annual rate of change of the CPI

Question 9

Inflation targeting

Answer 9

An approach to macroeconomic policy whereby the central bank is charged with meeting a target for inflation - in the UK it is 2%

Question 10

Investment

Answer 10

Expenditure undertaken by firms to add to the capital stock

Question 11

Invisible trade

Answer 11

Trade in services

Question 12

Involuntary unemployment

Answer 12

Situation arising when an individual who would like to accept a job at the going wage rate is unable to find employment

Question 13

Labour productivity

Answer 13

Measure of output per worker, or output per hour worked

Question 14

Law of comparative advantage

Answer 14

A theory arguing that there may be gains from trade arising when countries specialise in the production of goods and services in which they have a comparative advantage

Question 15

Long-run economic growth

Answer 15

The expansion of the productive capacity of an economy

Question 16

Gross Domestic Product (GDP)

Answer 16

The total output of goods and services produced in a country

Question 17

Government bond

Answer 17

A financial asset issued by the central or local government

Question 18

Hyperinflation

Answer 18

An inflation rate above 50%

Question 19

Hysterisis

Answer 19

When unemployment causes unemployment

Question 20

Imports

Answer 20

Products and services bought from overseas

Question 21

Indirect tax

Answer 21

A tax levied on goods and services

Question 22

Inflationary noise

Answer 22

A distortion of price signals caused by inflation

Question 23

Informal economy

Answer 23

Economic activity that is not recorded or registered with the authorities in order to avoid paying tax or complying with regulations, or because the activity is illegal

Question 24

Injections

Answer 24

Additions of extra spending into the circular flow of income

Question 25

International Labour Organisation (ILO)

Answer 25

A member organisation of the United Nations that collects statistics on labour market conditions and seeks to improve working conditions

Question 26

Labour force

Answer 26

The people who are employed and unemployed, that is, those who are economically active

Question 27

Labour Force Survey

Answer 27

A measure of unemployment based on a survey using the ILO definition of unemployment

Question 28

Leakages

Answer 28

Withdrawals from the circular flow of income

Question 29

Long-term unemployment

Answer 29

Unemployment lasting longer than one year