4116601
Description
Flashcards by taylorce11, updated more than 1 year ago
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Created by taylorce11
about 9 years ago
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| Question | Answer |
| Economic objectives | Economic goals |
| Economic growth | The % change in income measured over time |
| Full employment | Where all those seeking work are in employment |
| Equality | Where incomes are distributed more equally |
| Absolute poverty | Those with incomes lower than the level needed for necessities |
| Relative poverty | Those on low incomes relative to the country's average |
| Welfare state | Financial or practical help for those who need the most support |
| Free-market economy | a system where all economic decisions are taken by private individuals and businesses |
| Mixed economy | A system that is partly a free-market economy bus also has governemnt involvement in economic decisions |
| Market failure | A failure of the market to allocate resources efficiently |
| Merit goods | goods that are under-consumed bu society largely because the benefits of the good are not fully appreciated by society |
| Private benefit | the benefit to private businesses or individuals |
| Demerit goods | Goods that are over-consumed by society. Negative externalities are generated by the consumption of these goods |
| Public goods | Goods that display the following characteristics: consumption of the doesn't prevent others consuming them; once they are provided people cannot be prevented from consuming them |
| Externalities | The additions costs or benefits beyond private ones imposed on society that arise out of a production or consumption decision |
| Private cost | The cost to private businesses or individuals |
| Social cost | The cost to society of an action consisting of private costs and external costs |
| Social benefit | The benefit the society consisting of private benefits and external benefits |
| Taxation | Money collected by the government to finance its expenditure |
| Indirect taxes | taxes on expenditure (e.g. VAT) |
| Direct taxes | Taxes on incomes (e.g. Income tax) |
| Corporation tax | Tax on the profits of limited companies |
| Governtment expenditure | Money spent by the government on public services and welfare |
| Fiscal policy | Decisions made by the government for government expenditure and taxation |
| bank of england | the uks central bank and responsible for issuing and controlling the money in the economy |
| monetary policy | the policy to control the supply or cost of money |
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