LW2

Question 1

Microeconomics

Answer 1

Studies individual parts of economy

Question 1

Macroeconomics

Answer 1

Studies economy as whole

Question 2

Tarrif

Answer 2

A tax for foreign gods and services entering a country

Question 3

Import quota

Answer 3

A limit on the quantity of a good that can be produced abroad and sold domestically

Question 4

Subsidies

Answer 4

Help domestic producers compete against foreign imports and gain export markets

Question 5

Inflation

Answer 5

Situation, where economy’ s overall price level is rising

Question 6

The customer price index (CPI)

Answer 6

A measure of the overall prices of the goods and services bought by a typical costumer

Question 7

Unemployment

Answer 7

The number of people of working age who are able and available for work at current wage rates and who do not have a job

Question 8

Labor force

Answer 8

Number of employed + number of unemplyed

Question 9

Unemployed rate

Answer 9

(Number of unemployed/ labour force ) *100

Question 10

Labour force participation rate

Answer 10

(labour force/Adult population ) *100

Question 11

Balance of payments

Answer 11

The official account of international payments for the import and export of goods

Question 12

The current account

Answer 12

Payments for goods and services transacted between the domestic economy and foreign economies

Question 13

The financial account

Answer 13

records the flows of investment funds the domestic economy and foreigners for investments

Question 14

The capital account

Answer 14

Records the transfer of funds for the purchase and sale of non-founds for capital work