Economics Flashcards
What is unemployment rate?
The percentage of the labour force who are willing and able to work but are without jobs
What is local government?
A government organisation with the authority to administer a range of policies witin an area of the country
What is natural monopoly?
An industry where a single firm can produce at a lower average cost than two or more firms because of the existence of signifcant economies of scale
What is strategic industries?
Industries that are important for the economic development and safety of the country
What is a budget deficit?
Government expenses exceeds revenue
Meaning of money supply
Total of all of the currency and other liquid assets in a country’s economy
Costs of economic growth (Effect)
-Climate change
-Pollution
-And other environmental issues
Factors of economic growth
Land, labor, capital and entrepreneurship
Benefits of economic growth
-Greater availability of goods and services
-Increased employment
-Increased sales and profits
-Encourages investment in capital goods
-Low and stable inflation
-Increased tax revenue
Disadvantages of economic growth
-Rise in unemployment
-Natural resources may get repleted
-Increase negative consequences
-May cause inflation
-Widening income inequalities
What is a recession?
A negative economic growth
What are the causes of a recession
-Financial crises
-Rise in interest rates
-Fall in real wages
-Fall in consumer/business confidence
-Cut in government spending
-Trade wars
Meaning of real wages
Wages that have been adjusted for inflation
Meaning of inflation
Rate of increase in prices over a given period of time
What are the consequences of a recession?
-Firms go out of business
-Unemployment
-Fall in income
-Rise in poverty and inequality
-Higher budget deficit
