AQA GCSE Economics Terms And Definitions - Microeconomics (National)

Base Rate

Interest rate set by the Bank of England.

Boom

Period of high economic activity and unemployment.

Budget Deficit

Government spending exceeds tax revenue.

Budget Surplus

Government spending is less than tax revenue.

Claimant Count

Method of measuring unemployment by counting benefit claimants.

Consumer Price Index (CPI)

Measures inflation.

Cost of Living

Average price level of goods and services.

Cost Push Inflation

Price increases due to increased production costs.

Cyclical Unemployment

Unemployment due to economic downturns.

Debt

Total money owed by the government.

Demand Pull Inflation

Price rises due to increased demand.

Direct Tax

Tax on income or wealth.

Distribution of Income

How income is shared among individuals.

Economic Growth

Increase in GDP over time.

Employment

Use of labor to produce goods and services.

Fiscal Policy

Government use of tax and spending to influence the economy.

Frictional Unemployment

Unemployment due to job transitions.

GDP per Capita

GDP divided by population.

Gross Domestic Product (GDP)

Total value of goods and services produced.

Gross Income

Income before taxes or benefits.

Hyperinflation

Extremely high inflation.

Income

Reward for factors of production, including labor.

Indirect Tax

Tax on spending.

Inflation

Sustained rise in general price level.

Inheritance

Passing assets down generations.

Labour Force

Number of employed individuals.

Labour Force Survey

Measures unemployment via household survey.

Menu Costs

Costs for firms of increasing prices.

Minimum Wage

Lowest legal wage.

Monetary Policy

Control of money supply to achieve economic goals.

Net Income

Income after taxes and benefits.

Poverty

Inability to afford basic necessities.

Price Stability

Stable or low growth in price level.

Privatization

Transfer of assets from public to private sector.

Progressive Tax

Higher tax rates for higher incomes.

Rate of Inflation

Percentage increase in price level.

Rate of Unemployment

Percentage of unemployed workforce.

Recession

Consecutive quarters of GDP decline.

Redistribution

Use of tax and spending to reduce inequality.

Seasonal Unemployment

Unemployment due to seasonal demand changes.

Shoe Leather Costs

Costs of inflation-related transactions.

Structural Unemployment

Joblessness due to industry decline.

Supply Side Policy

Policies to increase economy's productive capacity.

Trade Union

Worker organization for collective bargaining.

Unemployment

Inability to find work at prevailing wages.

Wage Price Spiral

Cycle of wage and price increases.

Wealth

Value of owned assets.