U2 AOS1 Vocab/concepts

Question 1

Define

Affluenza

Answer 1

a mix of social circumstance and upbringing that results in a worldview where the accumulation of wealth is paramount and accountability is seen as irrelevant

Question 2

Aggregate Demand (AD)

Answer 2

total expenditure on goods and services made made within a nation’s economy

Question 3

Aggregate demand policies

Answer 3

government policies such as monetary and budgetary policy that stimulate or restrain AD to promote the achievement of the government’s macroeconomic goals

Question 4

Aggregate supply

Answer 4

the total value of goods and services available for sale in an economy in a given time frame

Question 5

Black market

Answer 5

economic activity that takes place outside of government sanctioned channels

Question 6

Business confidence/sentiment

Answer 6

the general business community’s perception of their future levels of sales and profitability

Question 7

Business/economic cycle

Answer 7

cyclical movement of economic activity over time, with periods of high rates of economic growth (boom) and periods of low or negative rates of growth (bust)

Question 8

Capacity constraints

Answer 8

factors that prevent an economy from producing more goods and services which an economy runs up against when at productive capacity

Question 9

Coincident indicators

Answer 9

move in sync with the overall state of an economy, providing a real time assessment of its current performance

Question 10

Consumer confidence

Answer 10

a measure of the degree of positivity or negativity about current and future economic conditions, including future employment

Question 11

Consumption expenditure

Answer 11

the total value of all expenditures on individual and collective consumption goods incurred by households and non-profit institutions

Question 12

Contraction

Answer 12

when economic activity decreases over time, potentially leading to a recession or depression

Question 13

Depression

Answer 13

a much more severe version of a recession in both scale and duration, high unemployment rates persist for years

Question 14

Direct Tax

Answer 14

a tax paid directly by economic agents,
normally based on the income they earn e.g income taxes

Question 15

Economic activity

Answer 15

real value of production, employment, income and expenditure in an economy

Question 16

Economic development

Answer 16

improvements in the economic well-being of a nation

Question 17

Examples of economic development

Answer 17

Material factors: growth in income and wealth Non-material factors: access to health and education and social advancement

Question 18

Economic growth

Answer 18

an increase in the amount or level of national production that has occurred over time

Question 19

Economic indicators

Answer 19

statistical measures used to assess and track the overall health, performance, and trends of an economy

Question 20

Employment

Answer 20

a person above legal working age who is engaged in labour and receives remuneration

Question 21

Exchange rate

Answer 21

the value of a nation’s currency when compared to another currency, or a basket of currencies of one’s major trading partners

Question 22

Expansion

Answer 22

where economic activity increases over time, potentially leading to a boom

Question 23

Export demand

Answer 23

spending on Australian goods and services by overseas consumers

Question 24

Final goods

Answer 24

goods that do not require further processing, purchased directly by end consumers for direct consumption

Question 25

Government demand

Answer 25

spending by governments on goods and services

Question 26

Gross Domestic Product (GDP)

Answer 26

the final market value of all goods and services in the Australian economy over a period of time (usually year)

Question 27

Import demand

Answer 27

money that is spent on goods and services that were produced overseas

Question 28

Indirect tax

Answer 28

tax paid by economic agents via their purchases of goods and/or services e.g GST

Question 29

Inequality

Answer 29

difference in opportunity or outcome

Question 30

Interest rate

Answer 30

the cost of borrowing money or the rate of return from lending money

Question 31

Intermediate goods

Answer 31

goods that are used by businesses in producing goods and services

Question 32

Investment demand

Answer 32

private sector spending on capital

Question 33

Lagging indicators

Answer 33

reflect changes and trends in an economy after they have occurred, providing a retrospective assessment of economic performance

Question 34

Leading indicators

Answer 34

provide insight into the future direction and performance of an economy, often used to forecast changes in economic activity

Question 35

Material living standards

Answer 35

living standards as measured by access to goods and services

Question 36

Net exports

Answer 36

exports minus imports (X-M) money paid to Australians from overseas in exchange for exports MINUS money Australians pay to overseas producers in exchange for imports

Question 37

Non-material living standards

Answer 37

aspects of a person's quality of life that cannot be measured by monetary factors

Question 38

Peak

Answer 38

the zenith of economic activity (boom is strong peak)

Question 39

Pollution

Answer 39

the addition of any substance to the environment at a rate faster than it can be dispersed in some harmless form

Question 40

Productive capacity

Answer 40

the potential output of the economy

Question 41

Productivity

Answer 41

the volume of output (e.g real gdp) that is produced from given number of inputs

Question 42

Real GDP per capita

Answer 42

a country's economic output per person

Question 43

Recession

Answer 43

a period (usually two successive quarters) of very low rates of growth or negative economic growth in production (aka real GDP) and high rates of unemployment

Question 44

Savings

Answer 44

money that is stored rather than being spent on goods and services

Question 45

Shock

Answer 45

any unexpected event that has a large-scale, unexpected impact on the economy

Question 46

Standard of living

Answer 46

the quality of a given population's life, measured in part by the quantity and quality of material goods and services

Question 47

Structural changes

Answer 47

a dramatic shift in the way an industry or market functions, usually brought on by major technological developments

Question 48

Tariff

Answer 48

a form of 'protection' involving tax on imports

Question 49

Taxes

Answer 49

money given to the government based on a person/entity's participation in the economy

Question 50

Terms of trade (TOT)

Answer 50

the ratio of exports to import prices

Question 51

Trough

Answer 51

the nadir of economic activity (depression is very strong trough)

Question 52

Unit labour cost

Answer 52

cost of labour per unit of output

Question 53

Congestion

Answer 53

an excess of vehicles on a portion of roadway at a particular time resulting in speeds that are slower

Question 54

Gini coefficient

Answer 54

a number between zero and one that provides an indication of the degree of inequality in the distribution of income

Question 55

Gross National Income (GNI)

Answer 55

an estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country's residents

Question 56

Human Development index (HDI)

Answer 56

a summary composite measure of a country's average achievements in three basic aspects of human development: health, knowledge and standard of living

Question 57

Purchasing power parity (PPP)

Answer 57

the rates of currency conversion that equalize the purchasing power of different currencies by eliminating the differences in price levels between countries

Question 58

Urban sprawl

Answer 58

the rapid expansion of the geographic extent of cities and towns, often characterized by low-density residential housing, single-use zoning, and increased reliance on the private automobile for transportation

Question 59

Urbanisation

Answer 59

the process by which large numbers of people become permanently concentrated in relatively small area, forming cities

Question 60

Worker's/migrant's remittance

Answer 60

when migrants send home part of their earning in the form of either cash or goods to support their families

Question 61

World Happiness Survey

Answer 61

it asks citizens of each country to self-report their level of happiness, to see how their averages compare to other measures of standard of living (e.g. life expectancy, income, perception of corruption in government, etc.)