Balance of payments - A record of all financial transactions between the UK and the rest of the world., Balance of payments (current account) deficit - When the value of the UK’s exports of goods and services are less than the value of imported goods and services. X > M., Balance of payments (current account) surplus - When the UK’s exports of goods and services are greater than the values of imported goods and services. X > M., Balance of trade - The part of the current account that records the sales and purchase of physical items between the UK and the rest of the world., Base rate - The interest rate set by the bank of England that influences market interest rates., Budget deficit - When government spending is greater than tax revenue (spending > tax)., Budget surplus - When government tax revenue exceeds expenditure (tax > spending)., Capital - The machinery and tools used in the creation of goods and services. This could include a factory or a coffee machine. The payment for capital is interest. (This is usually because it is purchased using borrowed money.), Claimant account - Measures unemployment by the number of individuals claiming unemployment benefit that week., Commercial banks (also known as high street or retail banks) - These look to make profits by selling financial services to households and businesses., Consumer price index (CPI) - Measuring inflation by taking the average weighted price level of a basket of goods and comparing it between years., Cost push inflation - When inflation is caused by an increase in the costs of production. For example, an increase in wages or the cost of raw materials., Current account - The part of the balance of payments which records the exchange of goods and services between the UK and the rest of the world., Cyclical unemployment (often called demand deficient unemployment) - Unemployment caused by a lack of demand for goods and services (the economy is in a recession or slump)., Demand - The quantity of a good or service that consumers are willing and able to buy at a given price and a given time period., Demand curve - A curve showing the quantity demanded for a good or service at any given price level., Demand pull inflation - When inflation is caused by an increase in demand for goods and services within an economy (this often occurs during a recovery or boom stages of the economic cycle)., Depreciation - When the value of one currency falls in value to another., Deregulation - The removal of regulations or restrictions on a particular business or industry., Developed countries - A country with a relatively high level of economic growth and mature institutions and infrastructure., Direct taxation - Taxes based on income such as income tax or national insurance contributions., Diseconomies of scale - Where an increase in a firm’s output results in an increase in its average costs., Economic activity - The making, producing, buying, selling or consuming products or services., Economic resource - Resources which are scarce. Due to them being limited decisions will have to be made about how they are used within an economy., Economies of scale - Where an increase in a firm’s output results in a fall in average costs. , Enterprise/entrepreneurship - Individuals who take the factors of production and convert them into goods and services which can be sold for profit. The payment for enterprise is profit., Equilibrium price - When demand for a good or service is equal to supply. When a market is in equilibrium then the price is likely to be stable., Exchanges rates - The value of a currency in terms of another. For example, £1 = $1.2, Exports - Goods which are produced within a country and then sold abroad., Factor markets - The market for the factors of production; land, labour and capital., Financial economies of scale - Firms being able to take advantage of lower interest rates as a result of their increased size. (Large firms can often borrow at a lower interest rate than smaller firms as they are considered a lower risk for lenders.), Fiscal policy - The use of government spending and taxation in order to influences the level of demand within the Economy., Frictional unemployment - This is caused by imperfect information where workers are unable to find work for their skill set., Full employment - When all those who are fit, able and willing to work in the next two weeks are employed., Geographical immobility - When workers are unable to move to new locations for work., Globalisation - The process of growing economic integration between the world’s economies. Goods can be produced anywhere, sold anywhere and the profits stored anywhere globally., Government - The organisation regulating consumers and producers., Government intervention - When government attempts to influence markets in order to correct market failure., Gross domestic product - The value of all goods and services produced within an economy within one year, Gross domestic product per capita - The value of goods and services produced within and an economy within one year divided by the country’s population., Imports - Goods which are produced abroad and then purchased in this country., Income inequality - An unequal distribution of income across the economy., Incomes - A flow of money. These can be from salaries, interest of dividends., Indirect taxation - Taxes on spending, examples of these would be excise duty and value added tax., Inequality - The differences between those with higher levels of wealth/income and those with lower., Inflation - The natural tendency for the average price level within the economy to rise over time., Interest rates - The cost of money which are set via the base rate by the Monetary Policy Committee of the Bank of England. Also the reward for saving., Monetary policy - The use of interest rates and other monetary tools to influence the level of demand within and economy., Progressive taxation - Taxation which increases as a proportion of the citizens total income as their income increases. Regressive tax., Structural unemployment - Unemployment that is caused by changes in the structure of an economy. It means that the skills which workers possess are no longer in demand.,

Definitions

Print
Embed

Leaderboard

Flip tiles is an open-ended template. It does not generate scores for a leaderboard.

Visual style

Options

Switch template

Continue editing: ?