eco term 1

Endogenous reasons

Inside reasons contributing to the business cycle, such as less production due to internal factors.

Exogenous reasons

Outside reasons affecting the business cycle, including external factors like weather.

Business Cycle

The fluctuations in economic activity characterized by periods of expansion and contraction.

Economic Goods

Anything useful to people that's limited in supply and therefore has a price.

Free Goods

Products of nature that are naturally abundant and available in unlimited supply to everyone.

Public Good

A good that no one can be excluded from using; one person's consumption does not reduce availability for others.

Merit Goods

Services provided by the government that are considered socially beneficial and available even if individuals cannot afford them.

Private Sector

Businesses owned and operated by individuals or groups, such as partnerships or companies.

Nationalisation

Transfer of ownership and control of an industry or enterprise from private to public ownership.

Privatisation

Transferring ownership and management from public to private.

Factors of Production

Natural resources, capital, labour, and entrepreneurship.

Scarcity

When there isn't enough of something to meet everyone's needs.

Circular Flow

Model that shows how money moves through an economy, flowing from households to businesses and back again.

Real Flow

The flow of goods and services in an economy.

Monetary Flow

The flow of money being exchanged within an economy.

Gross Domestic Product (GDP)

Total value of final goods and services produced within a country in a specific time.

Real GDP

GDP excluding the effects of inflation, used to calculate economic growth.

Nominal GDP

Total market value of all final goods and services produced in the economy, measured using current year prices.

GNI (Gross National Income)

Value of all final goods and services produced by permanent citizens of a country in a certain time.

Business Cycle

Natural up and down movement of a country's economy over time.

Prosperity Phase

Phase characterized by optimism, increased consumer spending, and economic growth.

Recession Phase

Phase following the peak where consumer spending drops, leading to decreased production and increased unemployment.

Depression Phase

Characterized by high unemployment, low consumer spending, and significant economic downturn.

Complementary Product

A product whose use is related to another paired good.

Substitute Products

Products or services that replace another good with little or no difference to the consumer.