Economics Terminology

Economics Test, 30/01/14.

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The Story of Stuff (video)

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Supply and Demand

Friedman/Keynes document

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Natural resource exploitation
Extraction, or 'trashing the planet.'
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Production
The usage of energy to mix toxic chemicals in with the natural resources to create toxic contaminated products
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Externalized costs
"Externalized costs are negative impacts associated with economic transactions which concern people outside of those transactions, meaning that neither the buyer nor the seller bears the brunt of the costs."
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Subdsidy
Money that the gov't pays to producers of a basic commodity to keep down costs for consumers.
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Consumption
The purchase of material goods, mainly meaningless
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Planned obsolescence
When manufacturers of products intentionally create products that are designed to be cheap, break fast, and then be re-purchased.
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Perceived obsolescence
Throwing away goods that are still useful. Eg. every few years phones change shape, and size. Your old, but still functioning Nokia phone embarrasses you.
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Disposal
When you throw away the material goods you bought, which are then incinerated/dumped in a landfill, which re-releases toxins back into the earth.
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Dioxin
A super toxin created when incinerating material goods to get rid of them, which is released into the atmosphere.
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The microeconomy
Centered on the small unit of the economy. Discusses the behaviour of the consumers, producers, and the market.
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The macroeconomy
Studies the behaviour of an entire nation. Eg. international trade agreements
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Expenditures
Things that you have to pay for with your income (rent/mortgage, utilities, food, water, miscellaneous bills, ie. phone, internet, tv)
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Income
Money you receive. Student allowances, (studiebedrag) salaries, tax refunds, investments
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Debt
Money that you owe. Student loans, mortgages, credit cards, bonds.
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Economic wants
Desires for things that can be obtained by labor or through exchange and on which, in a modern society, a money value can be placed.
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Economic needs
What you need and are willing to pay for
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Income tax
Money taken from your salary taken by the government to be used for everyone
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Progressive (income) taxation
The higher your salary, the more taxes you most pay on it.
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Visible trade
Purchased material goods we can see. Ikea furniture, paper, cars.
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Invisible trade
Purchased material goods we can't see. Services, investments, tourism.
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Balance of trade.
The total amount of exports vs the total amount of imports.
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A positive balance of trade
Exports > imports
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A negative balance of trade
Exports < imports
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Balance of payments
Total amount of payments made abroad (eg purchases made at foreign airports) vs. total payments received from abroad (tourists coming to SWE to buy things)
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Globalisation
The integration of various world economies in terms of production, distribution, and finances.
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Comparative advantages
To look at the abilities of other countries and to determine their strengths/weaknesses, manufacture-wise.
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Marginal costs
The cost added by producing one extra item of a product.
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Demographic development
How demographics change over time. Eg. what was popular in the teenaged female demographic in the 60's (the Beatles) is no longer popular.
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Political consensus
Sufficient political order and government efficacy so that the leaders of the state are able to rule.
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NGO
Non-government organisation
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GDP
Gross Domestic Product. The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis.
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Developing countries
Countries that are still in various stages of economic and political development. They have far lower incomes than developed countries.
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Tariff
A tax, or duty that is usually placed upon an imported commodity.
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Specific tariff
When tariff duties are levied as a fixed charge per barrel, or yard.
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Ad valorem (value-added) tariff
When tariff duties are levied as a percentage of the value of the value of a commodity.
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Import quota
Something that limits the quantity/value of a commodity that can be brought into a country in a given period of time.
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GATT
General Agreement on Trade and Tariffs. An agreement in which most Western nations agreed to a mutual effort to reduce trade barriesr.
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WTO
World Trade Organization. Replaced GATT in the 90's. Designed to foster trade amongst countries.
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Trade round
A period of negotiation under WTO.
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Foreign exchange
The process of exchanging money of one country for that of another and to the monies themselves.
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Economic goods
The things that money can buy and that are the objects of our economic wants.
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Labor
The efforts of human beings to manufacture a product
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Factors of production
All the human and nonhuman resources that go into the production of material goods.
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Natural resources
Resources such as land, raw materials, etc, that are the basis of all the material products that humans make.
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Capital/productive equipment
All the things that human beings have made to help them produce more easily and efficiently the kinds of goods that they ultimately require to satisfy personal wants. Tools, machines, factory buildings.
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Economizing
Making the best possible use of the resources that we employ at any time, which is one of the most important functions of the economic system.
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Market/unplanned economies
Economies that rely primarily upon the market to control economic decisions. There is no such thing as a true market economy.
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Planned economies
Economies that rely primarily upon a government controlled production and distribution system.
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Feudalism
A time in society when tradition ruled and most people were peasants tied to the land and their feudal lord.
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Mercantilism
When manufacturing and processing was favoured above agriculture, and governments determined who could do what.
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The invisible hand
The rise & fall of prices that guide individ's actions in a market. It guides individual's choices, so that each individ. pursuing his or own self-interest would help society & create the greatest wealth for the greatest no. of people in the society.
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Laissez-faire
"Leave alone." A policy that allows the market to operate with a minimum of government regulation.
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Mixed economy
An economy in which both the market and the gov't determine how goods are produced and distributed.
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Capitalism
An economic system based on private property, markets, entrepreneurial initiative, and the ownership of the means of production by capitalists.
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Demand
The amount of a product that people are willing to buy at any given time
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Supply
The amount that others are willing to sell
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Equilibrium price
The price at which demand exactly equals supply.
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Demand curve (DD)
A curve on a price/(bought/sold product) graph showing the amount of a good buyers would be willing to purchase at different prices in the market on a certain day.
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Supply curve
A curve on a price/(bought/sold product) graph showing the amount of a good sellers would be willing to offer at different prices on the same day.
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Other cards in this set

Card 2

Front

The usage of energy to mix toxic chemicals in with the natural resources to create toxic contaminated products

Back

Production

Card 3

Front

"Externalized costs are negative impacts associated with economic transactions which concern people outside of those transactions, meaning that neither the buyer nor the seller bears the brunt of the costs."

Back

Preview of the back of card 3

Card 4

Front

Money that the gov't pays to producers of a basic commodity to keep down costs for consumers.

Back

Preview of the back of card 4

Card 5

Front

The purchase of material goods, mainly meaningless

Back

Preview of the back of card 5
View more cards

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