econ

• where people do not have enough resources to meet all of their basic human needs
• administration activities involved with managing and organisng the work of a company
• aggregate demand total demand in the economy including consumption,investment, government expenditure and exports minus imports
• aggregate supply total amount of goods and services produced in a country at a given price level in a given time period
• anti-competitive practices attempts by firms to prevent competition
• appreciate value of a currency rises due to market forces-the exchange rate increases as a result
• assets things or resources belonging to an individual or a business that has value or the power to earn money
• austerity official action taken by a government in order to reduce the amount of money that it spends or the amount that people spend
• balance of payments record of all transactions relating to international trade
• balance of trade or visible balance difference between visible exports and visible imports
• barriers to entry obstacles that might discourage a firm from entering a market
• base rate rate of interest set by gov or regional central banks for lending to other banks, which in turn influences all other rates in the economy
• bi-lateral trade agreement trade deal between only 2 countries
• boom peak of the economic cycle where GDP is growing at its fastest; time when business activity increases rapidly, so that demand for goods increases, prices and wages go up, unemployment falls
• budget gov spending and revenue plans for the next year
• budget deficit amount by which government spending is more than government revenue
• bulk buying buying goods in large quantities, which is usually cheaper than buying in small quants
• capital and financial account that part of balance of payments where flows of savings,investment and currencies are recorded
• capital goods those purchased by firms and used to produce other goods such as factories machinery, tools and equipment
• capital intensive production that relies more heavily on machinery relative to labour
• cartel a group of firms/ countries join together and agree on pricing or output levels in the market
• closed shop company or factory where all the workers ust belong to a particular trade union
• commodities product that can be sold to make a profit
• competition rivalry that exists between firms when trying to sell goods to the same group of customers
• complementary goods goods purchased together because they are consumed together
• CPI(consumer price index) measure of the general price level (excluding hosing costs)
• contractionary fiscal policy fiscal measures designed to reduce demand in the economy
• cost-push inflation caused by rising business costs
• costs expenses that must be met when setting up and running a business
• current account part of balance of payments where all exports and imports are recorded
• current account deficit when the value of imports exceeds the value of exports
• current account surplus when the value of exports is more than the value of imports
• current balance difference between total exports and total imports(visible and invisible)
• cyclical or demand deficient unemployment unemployment caused by falling demand as a result of a downturn in the economic cycle
• deflation period where the level of aggregate demand is falling
• demand curve line drawn on a graph that shows how much of a good will be bought at different prices
• demand schedule table of quantity demanded of a good at different price levels-can be used to calculate the expected quantity demanded
• demand-pull inflation inflation caused by too much demand in the economy relative to supply
• depreciate where the value of a currency falls due to market forces- the exchange rate falls as a result
• depression/slump bottom of the economic cycle where GDP starts to fall with significant increases in unemployment