Deck 3 (G-L) Flashcards
GDP per capita
The average level of GDP per head of population
Globalisation
A process by which the world’s economies are becoming more closely integrated
Government budget deficit or surplus
The balance between government expenditure and revenue
Deficit - expenditure > revenue
Surplus - revenue > expenditure
Hot money
Stocks of funds that are moved around the world from country to country in search of the best return
Human capital
The stock of skills and expertise that contribute to a worker’s productivity
ILO unemployment rate
Measure of the percentage of the workforce who are without jobs, but are available to work, willing to work and looking for work
Index number
A device for comparing the value of a variable in one period or location with a base observation
Inflation
The rate of change of the average price level, the percentage annual rate of change of the CPI
Inflation targeting
An approach to macroeconomic policy whereby the central bank is charged with meeting a target for inflation - in the UK it is 2%
Investment
Expenditure undertaken by firms to add to the capital stock
Invisible trade
Trade in services
Involuntary unemployment
Situation arising when an individual who would like to accept a job at the going wage rate is unable to find employment
Labour productivity
Measure of output per worker, or output per hour worked
Law of comparative advantage
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
Long-run economic growth
The expansion of the productive capacity of an economy
Gross Domestic Product (GDP)
The total output of goods and services produced in a country
Government bond
A financial asset issued by the central or local government
Hyperinflation
An inflation rate above 50%
Hysterisis
When unemployment causes unemployment
Imports
Products and services bought from overseas
Indirect tax
A tax levied on goods and services
Inflationary noise
A distortion of price signals caused by inflation
Informal economy
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
Injections
Additions of extra spending into the circular flow of income
International Labour Organisation (ILO)
A member organisation of the United Nations that collects statistics on labour market conditions and seeks to improve working conditions
Labour force
The people who are employed and unemployed, that is, those who are economically active
Labour Force Survey
A measure of unemployment based on a survey using the ILO definition of unemployment
Leakages
Withdrawals from the circular flow of income
Long-term unemployment
Unemployment lasting longer than one year
