Definitions Flashcards
Economic activity
Any activity that takes place to achieve goals, complete daily chores or to make life more enjoyable
Transaction
The exchange of money for something in return
Production
The process of making a good or service
Expenditure
The spending of income on goods or services
Income
The money given to those involved in the production of goods
Economy
A system used to determine how decisions about production, income and expenditure take place
Specialisation
Different people concentrating on different stages of production
Purchasing power
The amount of items we can buy with our money
Exchange rate
The value of one currency for the purpose of conversion to another
Business cycle
A cycle of economic expansion and contraction
Wage rates
The amount of base wage paid to a worker per unit of time
Debt
A sum of money that is owed or due
Export
A product or service sold abroad
Import
A commodity, article or service brought in from abroad for sale
Savings
The portion of income not spent on current expenditure
