LS1 Flashcards
What is the government?
They set rules and regulations for economic agents to follow
What is the industry
Where businesses produce goods and services
Who are consumers?
Those that buy goods and services from firms/suppliers. Businesses can also be consumers
What are enterprises?
those that create goods or services
What is the central bank?
They are responsible for setting interest rates and acting as a banker for other banks.
Retained profit?
Used to reward shareholders via dividends or to fund business investments such as buying capital goods
What are shares
A financial asset that gives one part ownership in a company
The more shares one owns, the greater amount of control one has over a company
What are bonds
Bonds are issued by governments and corporations when they want to raise money
People that own bonds are called
Creditors/debtholders
What is economic growth
Occurs when there is a rise in the production of goods and services for a certain period as compared with a previous one
How is economic growth measured?
GNI/GDP
What is inflation?
Rise in the general price level for goods and services.
High inflation…
Erodes living standards
What is trade
When two or more countries interact by exchanging goods and services
What is a dividend?
Part of the profit of a company that is paid to the people who own shares in it
