Ch.24- Economic Issues Flashcards
Balance of payments
The difference between the values of export and import goods and services of a country over an year
Inflation
The price increase of goods and services over time
Level of unemployment
The proportion/percentage of the population that are capable of working but are unable to find a job
Gross Domestic Product (GDP)
The value of goods and services produced by a country in a year
Growth
Stage of the economy where business grows or recovers
Boom
Peak of the business cycle
Recession
The economy shrinks in size
Slump
Recession stage of the economy is at its worst
Interest rate
The cost to a person or business of borrowing money from a lender
Tax
A charge/fee paid to the government on income, wealth, goods and services.
Direct tax
The tax charged on personal income or tax on the profit made by a business
Indirect tax
The tax charged on the price of goods and services, which is added to the price of goods and services before they are bought
Disposable income
The amount of income left for individuals after taxes have been paid
