Glossary of economic terms Flashcards
Allocation
The way scarce resources are distributed among producers, and how scarce goods and services are divided among consumers.
Consumer
An individual who purchases goods or services fro a personal use
Capital resources
Inputs from manmade goods, such as machines or computers, that are used to produces further goods and services
Debt
Sum or money that is still owed
Depression
When economic activity is in decline over a long period of time
Economics
The study of how people produce, consume and share wealth
Globalisation
The process that involves all countries in the world being linked together, resulting in an exchange of views, ideas, products and culture
Good and services tax (GST)
A tax added to the value of some goods and services. In Australia, the tax is 10%
Gross domestic products (GDP)
The total market value of all goods and services produced within one country
Inflation
When the general level of prices paid for goods and services over a certain period of time increases
Interest rates
The amount a borrower must pay to a lender for the use of assets such as money
Investing/Investments
Putting money into shares, property or other financial schemes in the hope of making a profit
Labour resources
Inputs from human effort (physical and/or mental) used in the production of goods and services
Living standards
The level of wealth, material goods, comfort and life necessities available to people living in a geographical area
Market capitalist economy
An economic and political system where private individuals are the producers who exchange goods and services with consumers and in return keep the profit
Market socialist economy
An economic and political system where the exchange of goods and services takes place via a market where consumers and producers exchange goods and services.
Planned capitalist economy
An economic and political system where individuals own the resources to produce goods and services but the government or state dictates what, how and who it will be distributed to
Planned socialist economy
An economic and political system where the government or state predominantly owns the resources and also decides what, how and who it will be distributed to
Specialisation
Having limited resources to achieve unlimited needs or wants
Scarcity
Having limited resources to achieve unlimited needs and wants
Subsistence economy
An economic system where people produce enough for their own needs through methods such as hunting, gathering and farming. Money is not used
Surplus budget
When government spends less than their allocated revenue
Unemployment rate
The percentage of people who are in the labour force who are unemployed. The labour force includes both employed and unemployed
