economics definitions Flashcards
1
Q
definition of public sector
A
part of the economy that is controlled and managed by the government.
2
Q
definition of investment
A
spending on capital goods
3
Q
definition of saving
A
postponing consumption
4
Q
definition of positive multiplier effect
A
an increase in aggregate demand in an economy leads to a greater increase in production and income
5
Q
definition of external costs
A
costs that affect outside the initial transaction
6
Q
definition of animal spirits
A
the unpredictable and irrational aspects of human behaviour that can influence economic decisions
7
Q
definition of sustainability
A
meeting the needs of the present without causing problems for the future
8
Q
definition of specific tax
A
a tax on a certain good or service
9
Q
definition of equilibrium
A
when supply and demand are equal
