hass test

• economic growth

  as real growth in volume of goods and services produced by an economy over a period of time
• benefits of economic growth

  increase in goods available for consumption
• costs of economic growth

  environmental impacts
• welfare

  support for elderly, homeless, orphaned, and disadvantage is something only wealthy countries can afford
• improvement in welfare

  the provision of support services for those not necessarily able to help themselves
• friction unemployment

  temporary unemployment which may occur when people change jobs voluntarily
• structural unemployment

  results from the failure of the market mechanism of supply and demand to co-ordinate those seeking work with existing vacanies
• cyclinal unemployment

  the recess plase of a trade cycle
• seasonal unemployment


  only available during part of the year
• handcore unemployment

  the situation where some members of the community are more or less permanently unemployed
• hidden unemployment

  refers to people who are jobless, but official unemployment figures do not include them
• unemployment


  a state in which an individual of working age is actively seeking a job but is unable to find one
• employment

  refers to the state of having a job or being employed
• big 3

  economic growth, inflation unemployment
• inflation

  when there is an increase in the general level of prices across the economy
• measuring inflation

  the average change in retail price of a basket of local and important good and services
• demand inflation


  when the economy is going through a period of strong growth and employment
• supply inflation

  when suppliers and producers of goods and services decide not to absorb the increase cost, but decide to pass on the increase in cost to consumers
• factors of production

  capital, enterprise, land, and labour
• effects of inflation

  an unfavour occurrence for an economy
• inflation winners

  high income earners, borrows, governments
• inflation losers

  people saving money, financial instituations, exporters
• define gross domestic product (GDP)

  the monetary value of all of the final goods and services produced within a country per year
• aggregate demand equation

  C + I + Gs + (X - M)
• government objective

  economic growth = sustainable economic growth, inflation = price stability, unemployment = full employment
• percentage of government objective

  economic growth = 3-4%, inflation = 2-3%, unemployment = 4.5%
• limitations of gross domestic product


  doesn’t include non-market production, doesn’t provide information about distribution of production