Macro economics

Question 1

Business cycle

Answer 1

The four stages an economy goes through over a period of time as the economy does not grow at a steady rate

Question 2

Inflation

Answer 2

Increase in the average price of goods and services over time

Question 3

Unemployment

Answer 3

When people are willing to work but do not have a job

Question 4

Gross domestic product

Answer 4

Total value output of goods and services within a countries boarders

Question 5

Economic growth

Answer 5

An increase in GDP

Question 6

Balence of payments

Answer 6

The difference between imports and experts

Question 7

Recession

Answer 7

A period of falling GDP

Question 8

Exports

Answer 8

Goods and services sold from one country to another

Question 9

Imports

Answer 9

Goods and services brought in by a country from another

Question 10

Exchange rates

Answer 10

The price of one currency in terms of another

Question 11

Exchange rates appreciation

Answer 11

The rise in value of a countries compared to another

Question 12

Exchange rates depreciation

Answer 12

The fall in value of a countries currency compared to another

Question 13

Monetary policy

Answer 13

A change in interest rates by governments or banks

Question 14

Fiscal policy

Answer 14

A change in tax or public sector spending by the government

Question 15

Supply side policies

Answer 15

Policies to increases competitiveness of companies in the same industries

Question 16

Import tariff

Answer 16

Tax payed on imported goods

Question 17

Import quotas

Answer 17

A physical limit to the amount of t=products that can be imported

Question 18

Social responisbilty

Answer 18

When a business decision benfefits others than shareholders

Question 19

Private benefits

Answer 19

Gains to a business from an activity

Question 20

Private costs

Answer 20

Costs paid for by the business from an activity

Question 21

External benefits

Answer 21

Gains to the rest of society other than the business resulting from a business activity

Question 22

External costs

Answer 22

Paid for by the rest of society other than the business

Question 23

Social costs

Answer 23

External + privates costs

Question 24

Social benefits

Answer 24

External + private benefits

Question 25

Sustainable development

Answer 25

Development that does not put at risk the living standard of future generations

Question 26

Sustainable production methods

Answer 26

Methods that cause minimum damage to the environment

Question 27

Pressure groups

Answer 27

A group made to change the methods of business by organizing actions such as boycotts

Question 28

Ethical decisions

Answer 28

Decisions based on a moral code

Question 29

Globalization

Answer 29

Increases in worldwide trade and movement of people and capital between countries

Question 30

Free trade agreement

Answer 30

When countries decide to trade with not tarrifs or qoutas

Question 31

Protectionism

Answer 31

When a goveremtn rpotects domestic businesses from foreign ones

Question 32

Multinational business

Answer 32

Business with factories, production or service operations in more than one country

Question 33

Common currency

Answer 33

When a group of people agree to use the same currency

Question 34

Economic union

Answer 34

Agreements between countries to trade freely and have common economic institutions