Give a one word term for the description Flashcards
This occurs when the public sector policies do not accomplish their
intended purpose.
Ineffectiveness
Characteristics of the population such as size, race, age, sex, income,
language, occupation and so forth.
Demographics
When people can trade with people in other countries, free of any
restraints that governments or other regulators impose.
Free-trade
The difference between merchandise imports and exports.
Trade balance
The economic policy implemented by the democratic government of
South Africa to reform the social and economic environment inherited from the previous government.
Reconstruction and Development Programme (RDP)
Government initiatives that aim to improve how the government functions in targeted spatial locations that have the greatest potential for economic growth.
Spatial Development Initiative (SDI)
The channel trough which household savings are channelled.
Financial market
A situation where individuals still benefit from a good or service even if they do not pay for it.
Free riding
Policy focusing on diversification and expansion of manufacturing to make economies less dependent on foreign countries.
Import substitution
Increased economic integration leading to cultural and economic
harmony.
Globalisation
A track of land that forms a passageway allowing access from one area to another.
Corridor
The distance in output between the peak and trough of a business
cycle.
Amplitude
Restrictions of government on the purchase or sale of foreign currencies by private residents.
Exchange controls
A ban on exports and imports
Embargo
This approach refers to increasing the production capacity to contribute to economic growth.
Supply side approach
The Keynesians hold the view that markets are inherently unstable and use this explanation for business cycle fluctuations.
Endogenous
The proportion of disposable income which a household wishes to spend.
Autonomous consumption
Infrastructure and investments that improve the overall welfare of society.
Social capital
The sum of the incomes of all resident institutional units or sectors.
National income
A curve which shows the relationship between tax rates and tax revenue.
Laffer curve
The institution responsible for adjusting interest rates in South Africa.
SARB
The removal of unnecessary regulations and laws that advances operation of free markets.
Deregulation
Limits put on the supply of goods and services.
Qoutas
A composite statistic of life expectancy, education and income indexes that is used to rank countries’ human development.
Human Development Index.
Method of production by adding the final value of all goods and services.
Production method
Point on the business cycle where the economic performance is at its
lowest.
Trough
The transfer of functions and ownership from the private to the public sector
Nationalisation
The process by which the standard of living improves.
Economic development
Discretionary changes in monetary and fiscal policy to try to change the
level of aggregate demand.
Demand side policies
The index that measures prices of locally produced goods when they
leave the factory.
Producer Price Index
A small initial change in spending leads to a greater than proportional increase
in the national income.
Multiplier
Everyone can use these goods whether they are prepared to pay for them or not.
Community goods
A cash incentive granted for skills development
Skills Support Programme
An indication of the general direction of the economy
Trendline
The action by the South African Reserve Bank to occasionally change the balance that banks are required to maintain.
Cash reserve requirement
A deliberate downward adjustment to the value of a country’s currency, relative to another currency
Devaluation
A government policy that uses government expenditure and taxes to influence economic activity
Fiscal policy
The total market value of all final goods and services produced by permanent citizens of a country within a specific period
Gross National Product
When resources are allocated in such a way that no one can be made better off without making someone else worse off
Pareto efficiency
Compares a country’s export prices with its import prices by means of indexes
Terms of trade
Selling goods in a foreign market at prices that are below the cost of production in the country of origin
Dumping
The number of employed persons expressed as a percentage of the economically active population
Employment rate
A representation of the economy showing how the economic participants interact with one another
Circular flow
Goods provided by the state which would be undersupplied if entirely left to market forces
Merit goods
An increase in a country’s real gross domestic product
Economic growth
Labour force between the ages of 15 and 65 who are willing and able to supply labour for the production of goods and services
Economically active population
The actual price paid by consumers for goods and services including taxes less subsidies
Market price
Government’s aim is to increase economic growth without increasing inflation
The new economic paradigm
The government department that oversees the collection, management and expenditure of public revenue
Department of finance
Countries that are transitioning from the “developing” phase to the “developed” phase
Emerging markets/economies
Support regional and national economic development and address service delivery in the poorest and least competent provinces
Strategic integrated projects
The labour force divided by the total working-age population
Labour force participation rate
Economic indicators that move at the same time as aggregate economic activities
Coincident Indicators
An indication of the general direction of the economy
Trend
The loss of an alternative in order to pursue a certain action
Opportunity cost
A nationwide government intervention to create employment using labour-intensive methods, and to give people the skills they can use to find jobs.
Expanded Public Works Programme
An institution established to facilitate international trade and ensure a strong system of trade and payments that is open to all countries
International Monetary Fund
Percentage of the working-age population who rely on those that are working.
Dependency rate
Value of all final goods and services produced by permanent citizens of the country over a specified period.
Gross national products
The action by the South African Reserve Bank to occasionally change the balance that banks are required to maintain.
Cash reserve requirements
When a country can produce specific goods and services at lower average cost than other countries.
Comparative advantage
The tax charged on an individual’s personal assets such as properties and shares.
wealth tax
The policy implemented by the South Africa Reserve Bank to influence the economy.
Monetary policy
The decrease in the value of a currency due to market forces.
Depreciation
The use of different policies that are aimed at encouraging industrial investment and efficiency.
Industrial development
An economy that includes the foreign sector
Open economy
Measures the vertical difference between a trough and the trend line and between the peak and the trend line
Amplitude
Seeks to provide the disadvantaged and the poor with access to land for residential and productive purposes
Land redistribution
The state promotes domestic production of surpluses to increase exports and by mentoring changes in exchange rates.
Balance of payments equilibrium
The flow of goods, services and factors of production between households and businesses
Real flow
Business cycles that are caused by changes in construction activities, lasting for 15 to 20 years
Kuznets
Infrastructure and investment that improve the overall welfare of society
Social infrastructure
Measures the number of children that die before the age of one year
Infant mortality
A summary of the value of different leading indicators into a single value
Composite indicator
An economy that excludes the foreign sector
Closed
A transfer of functions and ownership from the public sector to the private sector
Privatisation
An increase in the price of a currency in terms of another currency due to market forces
Appreciation
When a country involved in international trade, produces more output than other countries given the same input
Absolute advantage
A document that details expected revenue and projected expenditure for the next fiscal year
National budget
Tax systems where low-income earners pay higher tax rates while high-income earners pay lower tax rates
Regressive
The provision of incentives to encourage local businesses to produce goods to sell to other countries
Export promotion
The industrial development strategy that focuses on improving the competitiveness in manufacturing by considering input prices and technology.
Integrated Manufacturing Strategy
