Economics Flashcards
(32 cards)
Consumer
Someone who purchases goods and services
Circular flow of income
The concept that producers rely on consumers to buy their goods and services so that they can continue to produce them, while consumers ability to earn an income, and therefore purchase goods and services, relies on producers.
Consumer price index (CPI)
A measurement of retail price changes of s constant basket of goods and services of what the average australia household spends
Deficit budget
When the government revenue is less than the government expenditure
Economic growth
An increase in the amount of goods and services produced per person within a specific period of time
Economic performance
A key concept in economics and business; how well an economy is performing, measured by whether it is achieving its economic objectives.
Expenditure
The amount of money a person or government spends.
Goods and services tax (GST)
A tax added to the value of some goods and services. In Australia it is currently 10% of the value of goods and services sales.
Gross
Tax or other contributors have not been deducted
Gross domestic product (GDP)
The total market value of all goods and services produced within Australia during a certain time frame.
Inflation
When the general level of prices paid for goods and services increases over a certain period of time.
Interdependence
A key concept which refers to the way participants in the economy rely on others to satisfy their needs and wants
Interest rates
The amount a borrower must pay to a lender for the use of assets such as money - usually expressed as a percentage of the total amount borrowed
Labour market reform
Reducing or limiting government power in an industry to promote better competition in that industry
Macroeconomic policy
Economic policy that focuses on an industry or market segment; it focuses on improving production over the medium to long term
Recession
When economic growth falls for two or more quarters in a row. Australia has had 4 recessions since 1960: 1961, 1974-75, 1982-83, and 1990-91
Revenue
Income a business receives from its business activities such as the sale of goods and services to customers
Scarcity
A key concept which refers to having limited resources to achieve unlimited needs and wants
Specialisation
A key concept which refers to focusing on the production of a particular good or service in order to produce it more efficiently
Surplus
A portion of a product that is more than can be consumed
Trade
Buying, selling or exchanging goods and services between people or countries
Unemployment rate
The percentage of people who are in the labour force who are unemployed. The labour force includes those who are employed and those unemployed who are able to work and actively seeking work
Productivity
A ratio between the output volume and the input volume. It measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.
Capital resources
Inputs from man made goods, such as machines or computers, that are used to produce further goods and services
