Unit 7 Chapter 5 Flashcards Preview

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Flashcards in Unit 7 Chapter 5 Deck (18):
1

Gross domestic product

Measures the value of a country's total output of goods and services over a period of time

2

Recession

A period of at least six months during which an economy's GDP falls

3

Exchange rates

The price of one currency expressed in terms of another

4

Currency

The system of money in general use in a particular country. The valye of currency can rise and fall against other currencies

5

Price elasticity of demand

Measures the sensitivity or responsiveness of the quantity demanded of a product to change in its price

6

Inflation

a persistent rise in general price level and associated fall in the value of money

7

Deflation

The rate of decrease of the general price level corresponding rise in the value of money

8

Consumer Price Index

Measures the rate of inflation based on the changes in prices of a basket of goods and services

9

Budget balance

The difference between government spending and revenue over the financial year

10

Fiscal policy

The use of taxation and public expenditure to manage the level of economic activity

11

Monetary policy

Controlling the money supply and the rate of interest in order to influence the level of spending and demand in the economy

12

Intrest rates

The price of borrowed money

13

Protectionism

A government policy which favours the use of measure intended to prevent the free entry of imports into a country

14

Global strategy

Exists when a business produces a single product to meet the needs of consumers across the global market

15

Emerging economies

Describes a country with low incomes per head but one which is enjoying high rates of economic growth

16

Economic growth

The rate of increase in the size of an economy over time

17

BRIC countries

Brazil, Russia, India and China are often referred to as prime examples of emerging markets

18

Multinational business

One that has production capacity in more than one country