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10 Multiple choice questions
Definition
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everybody who is willing and able to work is in employment.
Full employment
Cyclical unemployment
Seasonal unemployment
Full production
Definition
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Firms that sell goods and services to the rest of the world.
Lenders
Importers
Bankers
Exporters
Definition
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Government income & government expenditure for a 1 year period.
Interest
Budget
Savings
Taxation
Term
Fiscal policy
Use of interest rates or the money supply to influence the economy.
Government income = government expenditure
Use of taxation and government spending to influence the economy.
Taxation on spending (VAT, excise duties, import taxes)
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Definition
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An international governing body that regulates trade globally.
World Trade Organisation (WTO)
International Monetary Fund (imf)
International Development Association (ida)
International air transport association (iata)
Term
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Progressive taxes
Usually associated with indirect taxes - taking a higher % of income from lower earners.
Taxation on spending (VAT, excise duties, import taxes)
Usually implemented through direct taxes & take a higher % of income as tax from higher earners.
Very similar to the RPI - increasingly the measure of choice for Governments.
Term
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Retail Price Index
the increase of total production or expenditure in an economy
as prices rise, the purchasing power of our currency (eg: a dollar) decrease.
rest of world
weighted index showing price changes as a % for a hypothetical basket of goods.
Definition
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The increase of total production or expenditure in an economy
Inflation
Economic growth
Budget surplus
Taxation
Term
Aggregate Demand
Government income = government expenditure
Total Demand in the economy (expenditure + exports + investment + government spending)
Government income & government expenditure for a 1 year period.
Total Supply in the economy.
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Definition
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Use of interest rates or the money supply to influence the economy.
Fiscal policy
Budget
Taxation
Monetary policy
10 Written questions
Term
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Circular flow of income
Term
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ROW
Definition
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unemployment associated with people that are between jobs.
Definition
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Policies designed to stimulate more production in the economy.
Term
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Budget surplus
Term
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Importers
Term
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Money supply
Term
Balance of Payments (BOP)
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Term
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Indirect taxes
Definition
As prices rise, the purchasing power of our currency (eg: a dollar) decrease.
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