Economics basics

Question 1

natural increase in salaries connected with inflation

Answer 1

COLAs (cost-of-living adjustments)

Question 2

annual sum of values to all goods
and services produced in one country

Answer 2

GDP (gross domestic product)

Question 3

% the bank gets from a loan or % a person gets for keeping money in a bank

Answer 3

interest rate

Question 4

measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services

Answer 4

CPI (consumer price index)

Question 5

act of giving money to a company, a foreign country, etc. that has very serious financial problems

Answer 5

bailout

Question 6

sum of money you lose due to inflation when keeping money in cash

Answer 6

shoe leather cost

Question 7

probability of getting a loan with high/low interest rate based on personal records of taking loans and paying back

Answer 7

credit score

Question 8

value minus depreciation

Answer 8

net (investment, value)

Question 9

opposite of deficit

Answer 9

surplus

Question 10

a decrease in value over a period of time

Answer 10

depreciation

Question 11

a tax that is added to the price of goods and services

Answer 11

VAT (value added tax)

Question 12

sum of money you can borrow from a bank on different purposes (education, buying property, etc)

Answer 12

loan

Question 13

difficult time for the economy of a country, when there is less trade
and industrial activity than usual and more people are unemployed

Answer 13

recession

Question 14

a loan for buying property

Answer 14

mortgage

Question 15

income minus taxes

Answer 15

disposable income

Question 16

value with no consideration of depreciation

Answer 16

gross (investment, value)

Question 17

% of the bigger loan by which the sum will be increasing each year you don’t pay it back

Answer 17

APR (annual percent rate)

Question 18

difference between costs and nominal price

Answer 18

margin

Question 19

a reduction in the amount or success of something, such as a country’s economic activity

Answer 19

downturn

Question 20

an agreement between two people or groups in which each promises to do something in exchange for something else

Answer 20

bargain

Question 21

the process of failing or losing value or strength quickly and continuously

Answer 21

freefall

Question 22

not willing to do something and therefore slow to do it

Answer 22

reluctant