Chapter 6 - microeconomic performance

Question 1

Economic growth

economic objectives

Answer 1

the change in national income measured over a period of time.

Question 2

Balance of payments (economic objectives)

Answer 2

the record of financial transactions between the UK and the rest of the world.

Question 3

Government budget (economic objectives)

Answer 3

the budget refers to the value of government spending compared with the money earned by the government through a taxation over a period of time.

Question 4

distribution of income (economic objectives)

Answer 4

how evenly incomes are shared between individuals and households across an economy

Question 5

policy conflict

economic objectives

Answer 5

attempts to achieve one economic objective move us further away from another objective.

Question 6

macroeconomics

economic objectives

Answer 6

Refers to the economy as a whole, i.e. on national scale.

Question 7

macroeconomic objectives

economic objectives

Answer 7

A goal a government would like to achieve for the macroeconomy.

Question 8

economic policy (economic objectives)

Answer 8

The economic tools and instruments available for government to use influence economic performance.

Question 9

GDP

macroeconomic indicators

Answer 9

The term used widely to represent the national income of an economy.

Question 10

national income

macroeconomic indicators

Answer 10

The total income generated within an economy over a period of time.

Question 11

real GDP

Answer 11

real variables are those adjusted for changes in the level of prices, adjusting real GDP national income for changes in average prices.

Question 12

Per capita

Answer 12

a variable adjusted to give an average amount per person.

Question 13

price level

Answer 13

the average level of prices of a range of goods and services at a point in time ( measured monthly)

Question 14

inflation

Answer 14

an increase in the average level of prices measured over a period of time.

Question 15

inflation rate

Answer 15

the percentage change in the price ;even measured over the period of 1 year.

Question 16

unemployment

Answer 16

those of working age who are currently out of work but are actively seeking work.

Question 17

Labour force

Answer 17

those of working age who are either in work or actively seeking work

Question 18

claimant count

Answer 18

the measure of unemployment in the UK that counts those who are receiving unemployment benefits.

Question 19

unemployment rate

Answer 19

the number of unemployed people expressed as a percentage of the current labour force.

Question 20

productivity

Answer 20

a measure of efficiency comparing the level of output with the level of inputs

Question 21

labour productivity

Answer 21

the output of the workforce compared with the amount of labour ( either in people or hours) used to product the output.

Question 22

capital productivity

Answer 22

the output per item of capital equipment measured over a period of time.

Question 23

current account

Answer 23

part of the balance of payments which looks at the net income flows earned through wither trade in goods and services or the reward from investments located overseas.

Question 24

current account deficit

Answer 24

where the flows of money from trade and other incomes out of the country are greater than the equivalent flows into the country.

Question 25

index number

Answer 25

A number designed to be used to show the size of changes in a variable over time.

Question 26

price index

Answer 26

An average level of prices base on a selection of goods bought by the typical household.

Question 27

basket of goods and services

Answer 27

The selection of products to be included within the price index based on typical household purchases.

Question 28

weighted price index

Answer 28

An average level of prices adjusted so that price changes in popular items affect the price index more than price chines in seldom-brought items.