Vocabulary Flashcards
What does Better Life Index mean?
A comparison of wellbeing across OECD countries based on 11 (non- GDP) indicators including, civic involvement, education, safety and environment.
What does OECD stand for?
Organisation for Economic Co-operation and Development
What does GDP stand for?
Gross Domestic product
What are Capital Resources?
All equipment (machinery, buildings, infrastructure) used by human labor in the process of production, for example a secretary uses a computer; bricklayer a trowel and a farmer a plough.
What is the Circular Flow of Income?
A simple economic model depicting how money flows through the economy.
What is Cost Advantage?
When a business finds a way to reduce the cost of making their product so they can sell it at a lower price or increase their profit margin.
What is a Cost Benefit Analysis?
A systemized approach used to assess the advantages and disadvantages of purchasing the item/product.
What is Cost Comparison?
Comparing the cost of 2 or more products/services in order to find the best value.
What is a Budget?
A plan for future spending and saving, weighing estimated income against estimated expenses.
What is Demand?
An economic principle that describes a consumer’s desire and willingness to pay a price for a specific good/service.
What are Eco-Labels?
The certification and labelling of products that meet environmental and social standards in their production/consumption.
What is Collateral?
Something pledged as security for a repayment of a loan, to be forfeited to the loaner in the event of the loan being unpaid.
What is Credit Score?
A 3 digit number that represents the likelihood of a person to repay their bills on time. A reputation of sorts.
What is Down Payment?
An initial payment made when something is bought on credit.
What is a Mortgage?
An agreement between you and a lender that gives the lender the right to take your property if you don’t repay the borrowed money in addition to interest.
