F582 (OCR National and International Economy) Definitions from textbook

All the definitions that appear in the National and International part of the AS OCR Economics textbook.

The different colours relate to which section of the textbook it came from.

HideShow resource information
  • Created by: Beth
  • Created on: 26-04-13 17:36
Preview of F582 (OCR National and International Economy) Definitions from textbook

First 337 words of the document:

National and International Economy Definitions
Aggregate Demand - The total demand for a country's goods and services at a
given price level and in a given time period.
Aggregate Supply - The total amount that producers in an economy are willing
and able to supply at a given price level in a given time period.
Automatic Stabilisers - Forms of government spending and taxation that change
automatically to offset fluctuations in economic activity.
Average Propensity to Consume (APC) - The proportion of disposable income
spent. It is consumer expenditure divided by disposable income.
Average Propensity to Save (APS) - The proportion of disposable income saved.
It is saving divided by disposable income.
Balance of Payments - A record of money flows coming in and going out of a
country.
Capacity Utilisation - The extent to which firms are using their capital goods.
Circular Flow of Income - The movement of spending and income throughout
the economy.
Claimant Count - A measure of unemployment that includes those receiving
unemployment-related benefits.
Consumer Confidence - How optimistic consumers are about future economic
prospects.
Consumer expenditure - Spending by households on consumer products.
Consumer Prices Index (CPI) - A measure of changes in the price of a
representative basket of consumer goods and services.
Corporation Tax - A tax on firms' profits.
Cost-push Inflation - Increases in the price level caused by increases in the costs
of production.
Current Account Deficit - When more money is leaving the country than entering
it, as a result of sales of its exports, income and current transfers from abroad
being less than imports and income and current transfers going abroad.
Cyclical Unemployment -Unemployment arising from a lack of aggregate
demand.
Deflation - A sustained fall in the general price level.
Deflationary - Policy measures designed to reduce aggregate demand.

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Demand-pull Inflation - Increases in the price level caused by increases in
aggregate demand.
Discretionary Fiscal Policy - Deliberate changes in government spending and
taxation designed to influence aggregate demand.
Dissave - Spending more than disposable income.
Distribution of Income - How income is shared out between households in a
country.
Economic Cycle - The tendency for economic activity to fluctuate outside its
trend growth rate, moving from a high level of economic activity (boom) to
negative economic growth (recession).…read more

Page 3

Preview of page 3

Here's a taster:

Gross Domestic Product (GDP) - The total output of goods and services
produced in a country.
Hysteresis - Unemployment causing unemployment.
Imports - Products bought from abroad.
Inflation - A sustained rise in the price level.
Inflation Rate - The percentage increase in the price level over a period of time.
Inflationary Noise - The distortion of price signals caused by inflation.
Informal Economy - The advantage of producing on large scale, in the form of
lower long-run average cost.…read more

Page 4

Preview of page 4

Here's a taster:

Multiplier Effect - The process by which any change in a component of aggregate
demand results in a greater final change in real GDP.
Net Exports - The value of exports minus the value of imports.
Net Savers - People who save more than they borrow.
Nominal GDP - Output measured in current prices and so not adjusted for
inflation.
Occupational Immobility of Labour - Difficulty in moving from one type of job to
another.…read more

Page 5

Preview of page 5

Here's a taster:

Retail Prices Index (RPI) - A measure of inflation that is used for adjusting
pensions and other benefits to take account of changes in inflation and
frequently used in wage negotiations.
Retained Profits - Profit kept by firms to finance investment.
Saving ­ Real disposable income minus spending.
Savings Ratio - Savings as a proportion of disposable income.
Shoe leather Costs - Costs in terms of the extra time and effort involved in
reducing money holdings.…read more

Page 6

Preview of page 6

Here's a taster:

Wealth - A stock of assets, e.g. property, shares and money held in a savings
account.
World Trade Organisation (WTO) - An international organisation that promotes
free international trade and rules on international trade disputes.…read more

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all resources »