Key term definitions 2.5 Flashcards
what is the definition of appreciation of a currency?
a rise in the value of a currency
what is the definition of base rate?
the rate of interest around which a bank structures other interest rates
what is the definition of boom?
t of the economic cycle where GDP is growing at its fastest
what is the definition of consumer price index (CPI)?
a common measure of price changes used in he EU
what is the definition of deflation?
a fall in the general price level. also used to describe a situation where economic growth is falling or negative when inflation is falling
what is the definition of depreciation (of a currency)?
a fall in the value of a currency
what is the definition of downturn?
a period in the economic cycle where GDP grows but more slowly
what is the definition of economic, trade or business cycle?
regular fluctuations in the level of output in the economy
what is the definition of the exchange rate?
the price of 1 currency in terms of another
what is the definition of fiscal policy?
using changes in taxation and government expenditure to manage the economy
what is the definition of government expenditure?
the amount spent by the government in its provision of public services
what is the definition of Groos Domestic Product (GDP)?
a common measure of national income, output or employment
what is the definition of index linked?
the linking of certain payments such as benefits to the rate of inflation
what is the definition of inflation?
a general rise in prices
what is the definition of monetary policy?
using changes in the interest rate and money supply to manage the economy
what is the definition of a recession?
a less severe form of depression
what is the definition of recover or upswing?
a period where economic growth begins to increase again after a recession
what is the definition of slump or depression?
the bottom of the economic cycle where GDP starts to fall with significant increases in unemployment
what is the definition of taxation?
the charges made by the government on the activities, earnings, and income of businesses and individuals
what are anti-competitive/restrictive practices?
attempts by firms to prevent or restrict competition
what are barriers to entry?
obstacles that make it difficult for new firms to enter a new market
what is collusion?
in business where several businesses make agreements among themselves which benefit them at the expense of either rival businesses or customers
what is the contract of employment?
a written agreement between an employer and an employee in which each has certain obligations
what is discrimination?
favouring one person over another. In the EU it’s unlawful to discriminate on grounds regarding the protective strands
what is an employment tribunal?
a court that deals with cases involving disputes between employers and employees
what is the national minimum wage?
a wage rate set by the government below which it’s illegal to pay people at work
what is unfair dismissal?
the illegal dismissal of a worker by a business
which is a cartel?
a group of businesses which join together to agree on pricing and output in a market in an attempt to gain higher profits at the expense of customers
what bare market structures?
characteristics of a market e.g. size of a barrier to entry, number of businesses. they determine the behaviour of businesses within the market
