Economic Glossary Flashcards
Balance of payments
The relationship between imports and exports.
Best to have a favourable balance- to EXPORT MORE than you import
Cartels
The coming together of firms to gain the advantages of a monopoly
Deflation
Opposite of inflation (prices and wages decrease)
Direct taxes
Those imposed directly on what a person earns
Indirect taxes
Those imposed on what a person spends like VAT and duties imposed on luxuries.
Extensive farming
A situation in which previously unused land is brought into cultivation.
It’s land on the edge of profitability
Gold standard
When a nation’s currency can be measured against a fixed amount of gold
Intensive farming
Where the land is repeatedly cultivated to increase the yield per hectare
Lock out
When employers refuse to allow employees into their place of work. To=
- enforce a cut in pay/changes in working conditions
- retaliate for strike action
Monopoly
Seldom exist because of the availability of substitutes
Protectionism
Imposing duties (TARIFFS) on imported goods so that they’re more expensive-> gives home producers an ADVANTAGE over their foreign competitors
Real wages
Wages expressed in terms of the QUANTITY of goods and services they buy.
In times of inflation, it’s possible for money wages to RISE and real wages to FALL
Recession
A period of a decline in business activity
Demands for goods and services FALL
Production is CUT
UNEMPLOYMENT rises
Subsidies
Payment made by the STATE to cover PART of the cost of production
REDUCES the price of the product to the public
