Words 2.5 Flashcards
Appreciation of a currency
A rise in the value of a currency
Base rate
Rate of interest around which a bank structures other business rates
Gross domestic product
Common measure of national income, output or employment
Boom
Peak of the economic cycle where GDP is growing at its fastest
Consumer price index (cpi)
A common measure of price changes used in the eu
Deflation
A fall in general price level. Also used to describe a situation here economic growth is falling or negative when inflation is falling
Depreciation of a currency
A fall in the value of a currency
Downturn
Period in economic cycle where GDP grows but more slowly
Fiscal policy
Using changes in taxation and government expenditure to manage the economy
Inflation
General rise in prices
Monetary policy
Using changes in interest rate and money supply to manage the economy
Recession
Less severe form of depression
Index linked
Linking of certain payments such as benefits to the rate of inflation
Slump or depression
Bottom of an economic cycle where GDP starts to fall with significant increase in unemployment
Taxation
Changes made by government on the activities ,earnings and income of businesses and individuals
Anti competitive or restrictive practises
Attempts by firms to prevent or restrict competition
Barriers to entry
Obstacle that make it difficult for new firms to enter the market and compete
Collusion
2 or more businesses agreeing to a restrictive practise eg price fixing. This can be at the expense of rival businesses or customers
Contract of employment
Written agreement between an employer and employee with each having certain obligations
Employment tribunal
Court that deals with cases involving disputes between employers/employees
Cartel
Group of businesses or countries which join together to agree on pricing and output in a market in an attempt to gain higher profits at the expense of customers
Market structures
Charactistics of a market eg size of the barriers to entry
Monopoly
Absence of competition where a single group or company has majority market share
Unfair dismissal
Illegal dismissal of a worker by a business
