front 1 Local government | back 1 a government organisation with the authority to administer a range of policies within an area of the country |
front 2 Natural monopoly | back 2 an industry where a single firm can produce at a lower average cost than two or more firms because of the existence of significant economies of scale |
front 3 Strategic industries | back 3 industries are important for the economic development and safety of the country |
front 4 National champions | back 4 industries that are, or have the potential to be, world leaders |
front 5 Trade blocs | back 5 a regional group of countries that remove trade restrictions between them |
front 6 Free international trade | back 6 the exchange of goods and services between countries without restriction |
front 7 Economic growth | back 7 an increase in the output of an economy in the long run, an increase in the economy's productive potential |
front 8 Actual economic growth | back 8 an increase in the output of an economy |
front 9 Potential economic growth | back 9 an increase in an economy's productive capacity |
front 10 Aggregate demand | back 10 the total demand for a country's product at a given price level. It consists of consumer expenditure, investment, government spending and net exports (exports-imports) |
front 11 Aggregate supply | back 11 the total amount of goods and services that domestic firms are willing to supply at a given price level |
front 12 Full employment | back 12 the lowest level of unemployment possible |
front 13 Economically active | back 13 being a member of the labour force |
front 14 Unemployment rate | back 14 the percentage of the labour force who are willing and able to work but are without jobs |
front 15 Price stability | back 15 the price level in the economy not changing significantly over time |
front 16 Inflation rate | back 16 the percentage rise in the price level of goods and services over time |
front 17 Balance of payments | back 17 the record of a country's economic transactions with other countries |
front 18 Budget | back 18 the relationship between government revenue and government spending |
front 19 Budget deficit | back 19 government spending is higher than government revenue |
front 20 Budget surplus | back 20 government revenue is higher than government spending |
front 21 National debt | back 21 the total amount the government has borrowed over time |
front 22 Multiplier effect | back 22 the final impact on aggregate demand being greater than initial change |
front 23 Direct taxes | back 23 taxes on income and wealth |
front 24 Indirect taxes | back 24 taxes on expenditure |
front 25 Progressive tax | back 25 one which takes a larger percentage of the income or wealth of the rich |
front 26 Proportional tax | back 26 one which takes the same percentage of income or wealth of all taxpayers |
front 27 Regressive tax | back 27 one which takes a larger percentage of the income or wealth of the poor |
front 28 Automatic stabilisers | back 28 forms of government expenditure and taxations that reduce fluctuations in economic activity, without any change in government policy |
front 29 Inflation | back 29 the rise in the price level of goods and services over time |
front 30 Informal economy | back 30 that part of the economy that is not regulated, protected or taxed by the government |
front 31 Flat taxes | back 31 taxes with a single rate |
front 32 Fiscal policy | back 32 decisions on government spending and taxation designed to influence aggregate demand |
front 33 Expansionary fiscal policy | back 33 rises in government expenditure and/or cuts in taxation designed to increase aggregate demand |
front 34 Contractionary fiscal policy | back 34 cuts in government expenditure and/or rises in taxation designed to reduce aggregate demand |
front 35 Monetary policy | back 35 decisions on the money supply, the rate of interest and the exchange rate taken to influence aggregate demand |
front 36 Foreign exchange rate | back 36 the price of one currency in terms of anther currency or currencies |
front 37 Expansionary monetary policy | back 37 increases in the money supply and/or the reduction in the rate of interest designed to increase aggregate demand |
front 38 Contractionary monetary policy | back 38 cuts in the money supply or growth of money supply and/or rises in the rate of interest designed to reduce aggregate demand |
front 39 Supply-side policy | back 39 measures designed to increase aggregate supply |
front 40 Deregulation | back 40 the removal of rules and regulations |
front 41 Gross domestic product (GDP) | back 41 the total output of a country |
front 42 Circular flow of income | back 42 the movement of expenditure, income and output around the economy |
front 43 Value added | back 43 the difference between the sales revenue received and the cost of raw materials used. |
front 44 Transfer payments | back 44 transfers of income from one group to another not in return for providing a good or service |
front 45 Nominal GDP | back 45 GDP at current market prices and so not adjusted for inflation |
front 46 Real GDP | back 46 GDP at constant prices and so, adjusted for inflation |
front 47 Subsistence agriculture | back 47 the output agricultural goods for farmers' personal use |
front 48 Recession | back 48 a reduction in real GDP over a period of six months or more |
front 49 Sustainable economic growth | back 49 economic growth that does not endanger the country's ability to grow in the future |
front 50 Employment | back 50 being involved in a productive activity for which a payment is received |
front 51 Unemployment | back 51 being without a job while willing and able to work |
front 52 Claimant count | back 52 a measure of unemployment which counts as unemployed these in receipt of unemployment benefits |
front 53 Labour force survey (ILO) Measure | back 53 a measure of unemployment which counts as unemployed people who identify as such in a survey |
front 54 Frictional unemployment | back 54 temporary unemployment arising from workers being in between jobs |
front 55 Structural unemployment | back 55 unemployment caused by long-term changes in the pattern of demand and methods of production |
front 56 Cyclical unemployment | back 56 unemployment caused by a lack of aggregate demand |
front 57 Search unemployment | back 57 unemployment arising from workers who have lost their jobs, looking for a job they are willing to accept |
front 58 Casual unemployment | back 58 unemployment arising from workers regularly being between periods of employment |
front 59 Seasonal unemployment | back 59 unemployment caused by a fall in demand at particular times of the year |
front 60 Regional unemployment | back 60 unemployment caused by a decline in job opportunities in a particular area of the country |
front 61 Technological unemployment | back 61 unemployment caused by workers being replaced by capital equipment |
front 62 Deflation | back 62 a sustained fall in the prices of goods and services |
front 63 Disinflation | back 63 a fall in the rate of inflation |
front 64 Cost-push inflation | back 64 rises in the price level caused by higher costs of production |
front 65 Demand-pull inflation | back 65 rises in the price level caused by excess demand |
front 66 Wage-price spiral | back 66 wage rises leading to higher prices, in turn, lead to further wage claims and price rises |
front 67 Monetary inflation | back 67 rises in the price level caused by an excessive growth of the money supply |
front 68 Hyperinflation | back 68 a very rapid and large rise in the price level |
front 69 Index-linking | back 69 changing payments in line with changes in the inflation rate |
front 70 Menu costs | back 70 costs involved in having to change prices as a result of inflation |
front 71 Shoe-leather costs | back 71 costs involved in moving money around to gain higher interest rates |