Theme 1 Topic 1 key terms Flashcards
who does the government tax?
firms + consumers + suppliers
What does OBR stand for, and what do they do?
OBR stands for Office for Budget Responsibility. They produce forecasts for the state of the economy and public finances and monitor the UK government’s spending plans and performance
What does scarcity mean?
the demand for a good or service is greater than the availability of the good or service
What is the economic problem?
the challenge on how to satisfy unlimited wants and needs with limited resources
What does opportunity costs mean
money or benefits lost by not selecting a particular option during the decision-making process
What does ceteris paribus mean?
the effect of one economic variable provide all other variables stay the same
What is a Normative statement?
a statement made based on personal bias and opinion
What is a Positive statement?
a statement made from fact and is completely objective and can be proven with evidence.
What is inflation?
the rate of increase in prices over a given period of time
What does consumer confidence mean?
measures how consumers feel about the state of the economy
what does ROI stand for, and what does it mean?
ROI stands for return on investment and it means to evaluate how well an investment has performed
what does GDP stand for, and what does it mean?
GDP stands for Gross Domestic Product and it is a measure of the size and health of a country’s economy over a period of time
What is a variable interest rate?
a Variable interest is one where the interest rate follows the interest of the central bank and changes as such
