Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

IGCSE > Economics 2.1 definitions > Flashcards

Economics 2.1 definitions Flashcards

1
Q

Define budget deficit

A

Amount by which government spending is greater than government revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define macroeconomics

A

Study of large economic systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define microeconomics

A

Study of small economics systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define economic growth

A

Increase in the level of output by a nation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define national income

A

value of income, output or expenditure over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define GDP

A

Market value of all final goods and services produced in a period, an internationally recognised measure of national income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define boom

A

peak of the economic cycle where GDP is rising at its fastest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define depression or slump

A

bottom of the economic cycle where GDP starts to fall with significant increases in unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define downturn

A

period in the economic cycle where GDP grows but slowly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define recession

A

period of temporary economic decline during which trade and industrial activity are reduced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define overheat

A

if an economy overheats, demand rises too fast causing prices and imports to rise, the government may try to control by raising interest rates and taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define unsustainable growth

A

economic growth that is not able to be sustained without causing environmental problems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define aggregate demand

A

total demand in the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define deflation

A

period where the level of aggregate demand is falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define inflation

A

rate at which prices rise , a general and continuing rise in prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define CPI

A

measure of the general price level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define RPI

A

measure of general price level including house prices and council taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define demand pull inflation

A

inflation caused by too much demand in the economy in relation to supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Define cost push inflation

A

inflation caused by rising business costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Define interest rates

A

price paid to lenders for borrowed money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define monetarists

A

economists who believe there a stong link between growth in money supply and inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define purchasing power of money

A

amount of goods and services that can be bought with a fixed sum of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define menu costs

A

costs to firms of having to make repeated price changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define shoe leather costs

A

costs to firms and consumers of searching for new suppliers when inflation is too high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Define hyperinflation
very high levels of inflation
26
Define transactions
payment, or the process of making one
27
Define unemployment
Those actively searching for a job but unable to obtain one
28
Define cyclical or demand-deficient unemployment
unemployment caused by falling demand as a result of a downturn in the economic cycle
29
Define laying off
stop employing someone as theres no work for them to do
30
Define structural unemployment
unemployment caused by changes in the structure of an economy
31
Define frictional unemployment
when workers are unemployed for a short period of time when transitioning between jobs
32
Define seasonal unemployment
Unemployment caused when seasonal workers are laid off as their season has ended
33
Define voluntary unemployment
Unemployment resulted from people not choosing to work
34
Define balance of payments
record of all transactions relating to international trade
35
Define capital and financial accounts
where flow of savings, investment and currencies are recorded inside the balance of payments
36
Define current account
where all exports and imports are recorded inside the balance of payments
37
Define exports
goods and services sold overseas
38
Define imports
goods and services bought from overseas
39
Define current account deficit
when the value of imports exceeds exports
40
Define current account surplus
when the value of exports exceeds imports
41
Define current balance
difference between total exports and total imports(visible and invisible trade)
42
Define balance of trade
difference between visible exports and visible imports
43
Define invisible trade
trade in services
44
Define visible trade
trade in goods
45
Define primary income
money received from the loan of production factors abroad
46
Define secondary income
goverment transfers to and from overseas agencies such as the EU
47
Define exchange rate
price of one currency in terms of another
48
Define income inequality
differences in income that exist between the different groups of earners in society
49
Define lorenz curve
graphical representation of the degree of income or wealth inequality ina country
50
Define absolute poverty
Where people do not have enough resources to meet the basic needs for survival
51
Define relative poverty
poverty that is defined relative to existing living standards for the average individual
52
Define progressive taxation
where the proportion of income paid in tax rises as the income of the taxpayer rises.
53
Define regressive taxation
tax system that places the burden of the tax more heavily on the poor
54
Define policy instruments
tools the government uses to implement in their policies
55
Define budget
government's spending and revenue plans for the next year
56
Define fiscal policy
decisions about goverment spending, taxation and levels of borrowing that affect aggregate demand in an economy
57
Define direct taxes
taxes levied on the income earned by firms and individuals
58
Define indirect taxes
taxes levied on spending, such as VAT
59
Define VAT
taxes on specific goods and services
60
Define fiscal deficit
amount by which goverment spending exceeds goverment revenue
61
Define fiscal surplus
amount by which government revenue exceeds government spending
62
Define national debt
total amount of money owed by a country
63
Define expansionary fiscal policy
fiscal measures designed to stimulate demand in an economy
64
Define contractionary fiscal policy
fiscal measures designed to reduce demand in an economy
65
Define monetary policy
use of interest rates and money supplied to control aggregate demand in an economy
66
Define money supply
Amount of money circulating in an economy
67
Define base rate
rate of interest set by central banks for lending to other banks
68
Define mortgage
where you borrow money from a financial institution in order to buy land or a house, and you pay the money back of a couple of years
69
Define rate of interest
price of borrowing money
70
Define quantitative easing
buying of financial assets which results in a flow of money from central banks to commercial banks
71
Define real economy
part of the economy that is concerned with actually producing goods and services
72
Define aggregate supply
total amount of goods and services produced in a country at a given price level in a given time period
73
Define supply side policies
Government measures designed to increase aggregate supply in an economy

IGCSE (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions