Theme 2 Definitions MR SLATTERY

Question 1

economic growth

Answer 1

rate change of GDP of a country over a year

Question 2

gross domestic product (GDP)

Answer 2

value of all goods and services produced within a country in a year

Question 3

real GDP

Answer 3

measure of value added through the production of goods and services in a country during a period (adjusted for inflation)

Question 4

nominal GDP

Answer 4

total market value of all goods and services produced in a country’s economy over a given period

Question 5

growth

Answer 5

when the uk is making more goods and services

Question 6

boom

Answer 6

when the uk is making lits more goods and services

Question 7

slump

Answer 7

when the economy is slowing down

Question 8

recession

Answer 8

when the amount of goods and services the uk makes goes into negative figures

Question 9

frictional unemployment

Answer 9

out of work due to personal short term unemployment

Question 10

structural unemployment

Answer 10

your skills are no longer relevant

Question 11

seasonal unemployment

Answer 11

parts of the year when there is no work in your job

Question 12

cyclical unemployment

Answer 12

unemployment due to economic reasons

Question 13

claimant count

Answer 13

records the number of people claiming unemployment related benefits

Question 14

labour force survey

Answer 14

study of the employment circumstances of the uk population

Question 15

balance of payments

Answer 15

records of all transactions that the uk makes with the rest of the world

Question 16

imports

Answer 16

goods/services brought to this country from another country

Question 17

exports

Answer 17

goods/services brought to another country from this country

Question 18

visible trade

Answer 18

good which you can see

Question 19

invisible trade

Answer 19

service which you can’t see

Question 20

inflation

Answer 20

increase in prices

Question 21

deflation

Answer 21

decrease in prices

Question 22

disinflation

Answer 22

prices are still rising but at a slower pace

Question 23

consumer price index

Answer 23

measured the average change in prices paid by consumers over time

Question 24

retail price index

Answer 24

rate at which prices for goods and services are rising

Question 25

Philips curve

Answer 25

less unemployment leads to higher inflation (and vice versa)

Question 26

trade balance

Answer 26

difference between the value of exports and imports

Question 27

exchange rate system

Answer 27

rate at which one currency can be exchange for another currency

Question 28

supply side policies

Answer 28

policies that aim to increase productivity and efficiency in the economy

Question 29

interventionist policies

Answer 29

policies that require the government intervention to boost the economy

Question 30

market policies

Answer 30

regulations implemented to control the production and consumption of goods

Question 31

gross national product (GNP/GNI)

Answer 31

total value of goods produced and services provided by a country during one year

Question 32

trade unions

Answer 32

organised associations of workers in a profession, it seeks to protect workers pays and rights

Question 33

collective bargaining

Answer 33

process in which working people negotiate contract with their employers to determine their term of employment

Question 34

industrial action

Answer 34

when employers take action against their employers because of a work dispute

Question 35

holding a ballot

Answer 35

union must have a vote that’s properly organised according to legal rules

Question 36

trend growth

Answer 36

average sustainable rate of economic growth over time

Question 37

red tape

Answer 37

official rules and processes that seem unnecessary and cause delays

Question 38

competitiveness

Answer 38

when our economy can produce more products of better quality and as cost effective as other countries

Question 39

profit margin

Answer 39

amount by which revenue from sales exceeds costs in a business

Question 40

purchasing power parity

Answer 40

economic theory which compares the real cost of goods and services across different countries

Question 41

gross national income

Answer 41

measure of a country’s total income

Question 42

index number

Answer 42

average of the different changes in the price/quality of the goods and services included in the index

Question 43

international labour organisation (ILO)

Answer 43

organisation which promotes social justice and recognising human and labour rights

Question 44

price level

Answer 44

average of current price across the entire spectrum of goods and services produced in the economy

Question 45

spare capacity

Answer 45

resources that a business or economy has available but isn’t fully utilising

Question 46

structural reforms

Answer 46

policies that aims to improve how an economy functions

Question 47

nominal values

Answer 47

these are the current prices of goods, services or assets

Question 48

real values

Answer 48

these are nominal values adjusted for inflation

Question 49

unemployment

Answer 49

those who are registered as able, willing to work but who cannot find any work despite an active search

Question 50

economic inactive

Answer 50

those who are neither employed nor unemployment, meaning that they aren’t engaged in paid work and aren’t activity seeking it

Question 51

currency

Answer 51

system of money in general use in a particular country

Question 52

credit availability

Answer 52

general amount of credit you have left to spend on a credit card account

Question 53

trade liberalisation

Answer 53

process of reducing or eliminating barriers to international trade

Question 54

labour market flexibility

Answer 54

how quickly a firm responds to changing conditions in the market by making modifications to its workforce

Question 55

current spending

Answer 55

maintenance and payments of public services

Question 56

capital spending

Answer 56

infrastructure projects

Question 57

welfare spending

Answer 57

benefits and pension

Question 58

fiscal deficit

Answer 58

government spending is above tax revenue

Question 59

fiscal surplus

Answer 59

government spending is lower than tax revenue

Question 60

national debt

Answer 60

total accumulation debt of the government