economics is $#@*&%! DEFINITONS

humanities i cant wait to study this for th exam

Borrow definition

Obtaining money from a lender or a financial intermediary with and agreement to repay the borrowed amount in the future

List the four sectors

Financial sector

Household sector

Business sector

Government sector

Financial sector

Institutions that manage money, including banks and superannuation funds

Household sector

Individuals and families who consume goods and services and provides labour

Business sector

Organisations that produce goods and services

Government sector

Provides public services and collects taxes to fund them

Capital definition

Tools, machinery and buildings used to produce good and services

GST meaning

Goods and services tax- a 10% tax on most goods and services consumed in Australia

Demand Definition

The quantity of a good or a service that producers are willing to purchase

Economy Definition

The system of production, distribution and consumption of goods and services

Enterprise Definition

The ability to combine resources to produce goods and services and take risks

Financial intermediary Definition

Institutions that connect savers and borrowers

Goods and services meaning

Physical products and activities that satisfies consumer needs

Investment meaning

Using money to earn a return or a profit

Labour definition

Human effort used in production

Land definition

Natural resources used in production

Mortgage loan meaning

A loan used to buy property

Need meaning

A good or service that are necessary for consumers

Want meaning

A good or service desirable to consumers

Opportunity cost meaning

The loss of other alternatives when a specific option is chosen

Resources definition

Inputs used to produce goods and services

Salary definition

A fixed regular payment, typically monthly, for profession or office work

Wage definition

Payment based on hours works or output produced

Supply meaning

The quantity of a good or a service that producers are willing to sell

Superannuation funds meaning

Savings for retirement managed by financial institutions

Identify the three different taxes collected by the federal government

• Income tax

• Corporate tax

• Property tax

export definition

To transport goods and services to other countries

import definition

To receive goods and services from other countries

Invisible imports

The imports of services as opposed to goods

Invisible exports

Recession

A significant decline in economic activity in an economy

Open economy

An economy of which freely trades with other economies internationally

Cyclical unemployment

Job loss due to downturns in the business cycle

Seasonal unemployment

Job loss due to seasonal changes in demand

Structural unemployment

Job loss due tochanges in industry or technology

Frictional unemployment

Short term unemployment

Hidden unemployment

People not actively seeking work yet would accept job opportunities if offered

Globalisation

The increasing interconnectedness of countries through trade, investment and technology

What does TNC stand for/mean

Transnational corporation

A company that operates in one or more countries

Inflation

The increase of prices on goods and services

Economic growth

What does GPD stand for/mean

What does CPI stand for/mean

Consumer price index- An economic indicator that measures

Trade deficit

When the value of a country’s imports exceed the value of its exports

Trade surplus

When an economy has a positive balance of trades

Global financial crisis

Supply chain

The interconnected assembly of products

Sustainability

Practices that support long term economic growth

Enterprising behaviour

Taking initiative, being innovative and problem solving creativity