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Economics > Key Terms Unit 2 > Flashcards

Key Terms Unit 2 Flashcards

0
Q

Deflation

A

A decrease in the price of an item due to the currency strengthening

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1
Q

Inflation

A

The rise of a price of an item die to the currency depreciating in value

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2
Q

CPI

A

Consumer price index ( everything but housing costs)

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3
Q

RPI

A

retail price index (everything including housing)

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4
Q

Family expenditure survey

A

10’000 stratified households surveyed on spending habits

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5
Q

Commodities

A

Natural resources traded on international level

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6
Q

Inflation target

A

A target set by the central bank

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7
Q

GDP

A

Gross domestic product (all goods produced in the uk not uk owned products abroad)

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8
Q

GNP

A

Gross national product (uk made goods home and abroad)

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9
Q

Nominal

A

Not taking inflation into account

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10
Q

Real

A

Taking inflation into account

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11
Q

Per capita

A

Per person in a population

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12
Q

Recession

A

Negative growth for two consecutive quarters

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13
Q

Unemployment

A

People able and willing to work but not in work

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14
Q

ILO/IFS

A

A survey of population to see who is in work and who isn’t

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15
Q

Claimant count

A

A survey to see who claims unemployment benefit

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16
Q

Balance of payments

A

A record of payments between one country and the rest of the world ( tangible products, services, investment income and transfers)

17
Q

Purchasing power parity

A

A way of measuring exchange rates using the idea of how much a basket of goods costs in various countries

18
Q

Economic growth

A

A measure of the value of output of goods and services over a period of time (GDP/GNP)

19
Q

Economic development

A

A measure of welfare in society

20
Q

HDI

A

A measure of economic development (education, health and living standards)

21
Q

Economic model

A

Simplified theoretical model of an economy

22
Q

Circular flow of income

A

Shows the flow of goods, services and factors of production around the economy

23
Q

Simplified model of circular flow of income

A

Takes only households and firms into account

24
Q

Complex model of circular flow of income

A

Takes households, firms, banks, government and foreign trade into account

25
Q

National income

A

Total value of goods and services produced in the economy over a period of time

26
Q

Aggregate demand

A

Total level of planned real expenditure on UK produced goods and services (AD=C+I+G+(X-M))

27
Q

Aggregate demand curve

A

Shows the level of planned demand for real output consistent with a particular price

28
Q

The multiplier effect

A

Used to measure hange in autonomous expenditure

29
Q

The wealth effect

A

The wealth effect of a households is physical wealth and monetary wealth

30
Q

Gross investment

A

Total capital spending

31
Q

Capital investment

A

Investment on capital goods which will increase output of consumer goods

32
Q

Infrastructure

A

Capital spending on new roads etc

33
Q

Woking capital

A

Spending by firms on finished stock, raw materials and components

34
Q

Fixed capital

A

Investment on machinery, buildings and new tech

35
Q

Net investment

A

Gross investment minus an estimate for capital consumption

36
Q

Human capital

A

Building of stock of humans labour, quality and skill

37
Q

Financial investment

A

Investment in stocks and shares

38
Q

Capital stock

A

The total value for productive capacity in the UK

39
Q

Fiscal policy

A

Government spending

40
Q

Monterey policy

A

Regulations on interest rates and money supply’s

41
Q

Income distribution

A

How a nations GDP is spread

Economics (4 decks)

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