Macro economics Flashcards
Business cycle
The four stages an economy goes through over a period of time as the economy does not grow at a steady rate
Inflation
Increase in the average price of goods and services over time
Unemployment
When people are willing to work but do not have a job
Gross domestic product
Total value output of goods and services within a countries boarders
Economic growth
An increase in GDP
Balence of payments
The difference between imports and experts
Recession
A period of falling GDP
Exports
Goods and services sold from one country to another
Imports
Goods and services brought in by a country from another
Exchange rates
The price of one currency in terms of another
Exchange rates appreciation
The rise in value of a countries compared to another
Exchange rates depreciation
The fall in value of a countries currency compared to another
Monetary policy
A change in interest rates by governments or banks
Fiscal policy
A change in tax or public sector spending by the government
Supply side policies
Policies to increases competitiveness of companies in the same industries
Import tariff
Tax payed on imported goods
Import quotas
A physical limit to the amount of t=products that can be imported
Social responisbilty
When a business decision benfefits others than shareholders
Private benefits
Gains to a business from an activity
Private costs
Costs paid for by the business from an activity
External benefits
Gains to the rest of society other than the business resulting from a business activity
External costs
Paid for by the rest of society other than the business
Social costs
External + privates costs
Social benefits
External + private benefits
Sustainable development
Development that does not put at risk the living standard of future generations
Sustainable production methods
Methods that cause minimum damage to the environment
Pressure groups
A group made to change the methods of business by organizing actions such as boycotts
Ethical decisions
Decisions based on a moral code
Globalization
Increases in worldwide trade and movement of people and capital between countries
Free trade agreement
When countries decide to trade with not tarrifs or qoutas
Protectionism
When a goveremtn rpotects domestic businesses from foreign ones
Multinational business
Business with factories, production or service operations in more than one country
Common currency
When a group of people agree to use the same currency
Economic union
Agreements between countries to trade freely and have common economic institutions
