Economics basics Flashcards
natural increase in salaries connected with inflation
COLAs (cost-of-living adjustments)
annual sum of values to all goods
and services produced in one country
GDP (gross domestic product)
% the bank gets from a loan or % a person gets for keeping money in a bank
interest rate
measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services
CPI (consumer price index)
act of giving money to a company, a foreign country, etc. that has very serious financial problems
bailout
sum of money you lose due to inflation when keeping money in cash
shoe leather cost
probability of getting a loan with high/low interest rate based on personal records of taking loans and paying back
credit score
value minus depreciation
net (investment, value)
opposite of deficit
surplus
a decrease in value over a period of time
depreciation
a tax that is added to the price of goods and services
VAT (value added tax)
sum of money you can borrow from a bank on different purposes (education, buying property, etc)
loan
difficult time for the economy of a country, when there is less trade
and industrial activity than usual and more people are unemployed
recession
a loan for buying property
mortgage
income minus taxes
disposable income
value with no consideration of depreciation
gross (investment, value)
% of the bigger loan by which the sum will be increasing each year you don’t pay it back
APR (annual percent rate)
difference between costs and nominal price
margin
a reduction in the amount or success of something, such as a country’s economic activity
downturn
an agreement between two people or groups in which each promises to do something in exchange for something else
bargain
the process of failing or losing value or strength quickly and continuously
freefall
not willing to do something and therefore slow to do it
reluctant
