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GCSE OCR Economics > P2 Key Words > Flashcards

P2 Key Words Flashcards

(63 cards)

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1
Q

economic growth

A

growth in GDP (value of output) over time

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2
Q

gross domestic product (GDP)

A

total value added of goods and services produced in the country in a year

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3
Q

GDP per capita

A

GDP divided by population

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4
Q

boom

A

a period of high economic activity and high levels of employment

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5
Q

recession

A

a period when the country’s GDP falls for two or more consecutive quarters

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6
Q

labour force (workforce)

A

number of people who work in a country

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7
Q

employment

A

use of labour in the economy to produce goods and services

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8
Q

unemployment

A

occurs when workers able and willing to work at the current wage rate are unable to find employment

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9
Q

claimant count

A

method of measuring unemployment according to the number of people who are claiming unemployment-related benefits

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10
Q

level of unemployment

A

number of people in working population who are unemployed

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11
Q

rate of unemployment

A

% of country’s workforce that is unemployed

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12
Q

frictional unemployment

A

unemployment caused by time lags when workers move into jobs

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13
Q

seasonal unemployment

A

unemployment caused by a fall in demand during a particular season

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14
Q

structural unemployment

A

unemployment caused by a permanent decline of an industry/industries

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15
Q

cyclical unemployment

A

unemployment caused by a lack of demand in the economy

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16
Q

distribution of income

A

how incomes are shared out between individuals and households

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17
Q

income

A

reward for service produced by a factor of production, including labour; flow over time

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18
Q

wealth

A

market value of all the assets owned by a group/person/country at a specific point in time; a stock of assets

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19
Q

gross income

A

income received before any taxes are taken/benefits given

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20
Q

net income (disposable income)

A

income available after the effect of direct taxes and benefits

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21
Q

distribution of wealth

A

how wealth is shared out between individuals and households

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22
Q

cost of living

A

price level of goods and services bought (by the average family)

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23
Q

price stability

A

general level of prices stays constant over time , or grows at an acceptably low rate

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24
Q

rate of inflation

A

% rise in general price level over time

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25
consumer price index (CPI)
method used to calculate the rate of inflation
26
government spending
total amount of money spent by the government in a given period of time
27
direct tax
tax on income/wealth
28
government revenue
source of finance for government spending
29
indirect tax
tax on spending/tax on goods and services
30
balanced government budget
tax revenue = government spending
31
budget deficit
government spending > tax revenue
32
budget surplus
tax revenue > government spending
33
fiscal policy
policy that uses government spending and taxation to affect the economy as a whole
34
income and wealth redistribution
government action, using mainly taxation and benefits, to reduce inequalities of income and wealth
35
progressive tax
tax which takes a greater % of tax the higher the income
36
monetary policy
policy that aims to control the total supply of money in the economy to try to acheive the government's economic objectives (particularly price stability)
37
supply-side policy
policy that increases the productive potential, which is the ability of the economy to supply more goods and services
38
externality
effect of an economic activity on a third party
39
negative externality (external cost)
harmful effect of an economic activity on 3rd parties
40
positive externality (external benefit)
beneficial effect of an economic activity on third parties
41
legislation
laws to control the way people and organisations behave
42
regulation
rules/directives/government order to control the way people and organisations behave
43
information provision
government provides information to encourage people and organisations (especially consumers) to change their behaviour
44
exports
goods and services sold abroad
45
imports
goods and services bought from abroad
46
international trade
exchange of goods and services between countries
47
European Union (EU)
economic and political group of countries in Europe that have free trade with each other
48
free trade agreement
free movement of goods and services between countries, without any restrictions
49
balance of payments
record of all financial transactions between one country and the rest of the world
50
current account
record of trade in goods and services, income flows and transfers between one country and the rest of the world
51
balance of payments on current account
total of net trade in goods and services, income flows and transfers between one country and the rest of the world
52
balanced current account
where export revenue (plus the inflow of income and transfers) is equal to import spending (plus the outflow of income and transfers)
53
current account deficit
where export revenue (plus the inflow of income and transfers) is less than import spending (plus the outflow of income and transfers)
54
current account surplus
where export revenue (plus the inflow of income and transfers) is greater than import spending (plus the outflow of income and transfers)
55
currency
system of money used in a country/group of countries
56
exchange rate
price of one currency in terms of another
57
globalisation
expansion of world trade in goods and services, together with capital flows, leading to greater international interdependence
58
development
process of increasing people's standard of living and wellbeing over time
59
developed country
country with high GDP per capita and developed industry and service sectors
60
less developed country
country with a developing economy that has lower GDP per capita, lower levels of industrialisation and weaker indicators of wellbeing
61
economic sustainability
best use of resources in order to create responsible development/growth, now and in the future
62
environmental sustainability
impact of development/growth where the effect on the environment is small and possible to manage, now and into the future
63
social sustainability
impact of development/growth that promotes an improvement in quality of life for all, now and into the future

GCSE OCR Economics (16 decks)

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