DICTIONARY
ECONOMICS
5-7
Dannyelle Philip
B
Balance of payments: a statement of all transactions made between entities in
one country and the rest of the world over a defined period, such as a quarter or a
year.
D
Deflation: Reduction of the general level of prices in an economy.
Developed economy: A country with sustained economic growth, security, high
per capita income, and advanced technological infrastructure.
Developing economy: A developing country is a country with a less developed
industrial base and a low Human Development Index relative to other countries.
Disposable income: income remaining after deduction of taxes and social security
charges, available to be spent or saved as one wishes.
E
Economic development: the process whereby simple, low-income national
economies are transformed into modern industrial economies.
Economic growth: an increase in the real output of goods and services in the
country
Employment: the state of having paid work.
F
Fiscal deficit: the difference between a Centre or state's expenditure and revenue when the former is higher.
Fiscal policy: the use of government spending and taxation to influence the economy.
G
GDP: Gross Domestic Product is the total of all value added created in an economy
GNP: Gross national product is an estimate of the total value of all the final products
and services turned out in a given period by the means of production owned by a
country's residents.
I
Inflation: a general increase in prices and fall in the purchasing value of money.
Investment: to allocate money with the expectation of a positive benefit/return in the
future.
N
National budget: The budget is the government's plan for income and costs for the
coming year.
National dept: the total amount of money which a country's government has
borrowed.
National income: the total amount of money earned within a country.
S
Savings: An economy of or reduction in money, time, or another resource.