Topic 9

Cards (14)

  • Fiscal policy
    The use of government expenditure, taxation, and government borrowing to affect the levels of income and expenditure within the economy.
  • Government budget
    Government's plan for spending and tax.
  • Budget surplus
    Where government revenue is greater than government expenditure.
  • Budget deficit
    Where government expenditure exceeds government revenue.
  • Monetary policy
    The manipulation of the base interest rates and other monetary tools to influence general levels of demand in the economy. It's primary use is to control inflation to keep price stability and to encourage economic growth.
  • Base rate
    The interest rate set by the Bank of England that influences market interest rates.
  • Supply-side policies
    Government policy to enable an increase in the quantity or quality of goods and services produced in an economy.
  • Direct taxes
    Tax taken from income.
  • Trade unions
    An organised association of workers formed to protect and further their rights and welfare.
  • Privatisation
    The process of transferring public sector organisations to the private sector.
  • Deregulation
    The removal of regulations or restrictions on a particular business or industry.
  • Externalities
    Costs (or benefits) arising from the decisions of an individual which impact on people other than that individual.
  • Positive externalities
    Positive effect received by a third party resulting from a transaction in which they had no direct participation.
  • Negative externalities
    Occurs when a product or decision has a bigger cost to society in relation to its private cost.