refers to the cost of consumers feeling the need to “shop around” to find the best price
1 of 20
menu costs
refers to costs to business of repeatedly having to revise and update price lists like menus as costs are continuously rising
2 of 20
balance of payments
is the record of a country’s transactions (trade and movement of money) with the rest of the world
3 of 20
deficit
when outflows are greater than inflows
4 of 20
surplus
when inflows are greater than outflows
5 of 20
net investment income
the difference between inward and outward flows of investment income
6 of 20
direct investment
which means putting money into the building of capital projects abroad
7 of 20
portfolio investments
which tends to mean buying shares and bonds issued by overseas companies
8 of 20
transfers
payments made between countries without anything of economic value received in return, e.g grants
9 of 20
LIBOR
the london interbank offered rate, the rate at which banks lend eachother money
10 of 20
commercial interest rates
the rates that commercial banks offer businesses interest and individuals for loans and savings
11 of 20
public sector borrowing
the public sectors net cash requirement, aka borrowing requirement. is deliberately allowed to increase for a period of time in order for the macro economics objective of full employment to be achieved
12 of 20
direct tax
taxes levied on income and wealth, the obligation to pay cannot be transferred onto someone else e.g income tax, national insurance, corporation tax
13 of 20
indirect tax
taxes on spending, although the tax falls on the seller of the good, the seller simply increases the price to the buyer thus shifting the tax burden to the consumer e.g VAT, petrol, alcohol
14 of 20
progressive taxation
as your income rises you pay a higher proportion of tax on that amount
15 of 20
regressive tax
opposite to progressive tax where the poor lose a proportionally greater amount due to tax than the rich
16 of 20
flat or proportional taxation
which is the proportion of income paid in tax remains the same for all levels of income
17 of 20
the current account
is a measure of how competitive a country is (in terms of exports vs imports) and the extent to which it ‘lives within its means’
18 of 20
balance of trade in goods
the figure represents the value of exports - value of imports on its own it does not tell us what those values were it just tells us the gap between them
19 of 20
balance of trade in services
the figure shows that services is an area where it appears that the uk is internationally competitive
20 of 20
Other cards in this set
Card 2
Front
menu costs
Back
refers to costs to business of repeatedly having to revise and update price lists like menus as costs are continuously rising
Comments
No comments have yet been made