Samhällets ekonomi - Economics Study Guide

Vocabulary flashcards covering society's economy (Samhällets ekonomi), including economic systems, the economic circular flow, salary types, market dynamics, production factors, macroeconomic indicators, business cycles, and fiscal and monetary interventions.

The Three Basic Economic Questions (Ekonomins tre grundfrågor)

The three fundamental issues every economy must address: what should be produced, how the production should be carried out, and how the results of what is produced should be distributed.

Market Economy (Marknadsekonomi)

An economic system in which businesses decide what they want to sell and prices are determined by supply and demand, with competition driving firms to attract customers.

Planned Economy (Planekonomi)

An economic system in which the state determines most of what is produced and how resources are used according to human needs, which can lead to shortages because of the difficulty in predicting exact needs.

Mixed Economy (Blandekonomi)

An economic system combining elements of market and planned economies where businesses compete to sell goods while the state intervenes through taxes, laws, and public services such as education and healthcare (e.g., Sweden).

Competition (Konkurrens)

The rivalry between companies competing for customers by offering lower prices, higher quality, or improved service, thereby giving consumers more choices and driving product improvement.

Monopoly (Monopol)

A market condition where only one seller exists without competition from others; in Sweden, Systembolaget holds a monopoly on the retail sale of most alcoholic beverages with a higher alcohol content.

The Large Economic Circle (Det stora ekonomiska kretsloppet)

The economic model showing the circular movement of money among households, businesses, banks, and the state through wages, purchases, taxes, public welfare funding, loans, and interest.

The Small Economic Circle (Det lilla ekonomiska kretsloppet)

The circular economic interaction between households and businesses where households supply labor in exchange for wages and purchase goods and services, and businesses use sales revenue to pay for wages and production.

Changes in the Economic Circle (Förändringar i det ekonomiska kretsloppet)

The ripple effect across the economy caused by shifts in one sector; for instance, if the state lowers taxes, households retain more money to spend, boosting company sales and hiring, but leaving the state with less revenue for schooling and healthcare.

Interest (Ränta)

The cost charged for borrowing money or the financial compensation received when saving money; raising it increases borrowing costs, dampens spending by households and businesses, and helps curb inflation.

Amortization (Amortering)

The repayment of the principal loan amount itself; for example, borrowing $100\,000\text{ kronor}$ and paying down $2\,000\text{ kronor}$ lowers the debt to $98\,000\text{ kronor}$.

Disposable Income (Disponibel inkomst)

The net amount of money a household has left to use for consumption or saving after taxes are deducted and all incomes and government benefits (bidrag) are included.

Gross Salary (Bruttolön)

The total salary agreed upon before taxes are deducted, such as earning $25\,000\text{ kronor}$ prior to taxation.

Net Salary (Nettolön)

The actual salary paid into a bank account after tax deduction; for example, if gross salary is $25\,000\text{ kronor}$ and tax is $5\,000\text{ kronor}$, the net salary is $20\,000\text{ kronor}$.

Supply (Utbud)

The total quantity of a good or service that businesses wish to sell on the market; if supply increases while demand remains unchanged, the price may drop.

Demand (Efterfrågan)

The total quantity of a good or service that people want and can afford to purchase; if demand increases while supply remains unchanged, the price may rise.

Equilibrium Price (Jämviktspris)

The market price at which the quantity buyers want to purchase exactly matches the quantity sellers want to sell, such as customers buying $100$ loaves of bread when bakeries offer $100$ loaves at that price.

Factors of Production (Produktionsfaktorer)

The essential resources required to produce goods and services, consisting of labor (arbetskraft), raw materials (råvaror), real capital (realkapital), and knowledge (kunskap).

GDP / Gross Domestic Product (BNP / Bruttonationalprodukt)

The total monetary value of all finished goods and services produced within a country over a specific period, usually one year, indicating the size and growth of the economy.

GDP per capita (BNP per capita)

A nation's total GDP divided by its population, facilitating economic output comparisons between countries of different population sizes without reflecting income distribution.

Economic Boom (Högkonjunktur)

A period when the economy performs better than normal, characterized by increased sales, higher employment, and lower unemployment, which may cause rapid price increases if demand outpaces production capacity.

Economic Recession (Lågkonjunktur)

A period when the economy performs worse than normal, characterized by decreased consumption, falling business revenues, reduced production, and rising unemployment.

The Business Cycle (Konjunkturcykeln)

The ongoing pattern of economic fluctuations over time characterized by periodic shifts between economic booms (högkonjunktur) and recessions (lågkonjunktur).

Measures during an Economic Boom (Åtgärder vid högkonjunktur)

Countermeasures used when the economy overheats and prices rise too quickly, such as Riksbanken raising the policy rate (styrräntan) to make borrowing more expensive, cool spending, and slow inflation.

Measures during an Economic Recession (Åtgärder vid lågkonjunktur)

Stimulus actions used during economic downturns, such as Riksbanken lowering the policy rate (styrräntan) to encourage borrowing and investment, alongside the state raising spending or cutting taxes to stimulate demand and employment.

Inflation

A general increase in the prices of goods and services over time that erodes the purchasing power of money, such as a grocery bag increasing in price from $200\text{ kronor}$ to $220\text{ kronor}$.

Policy Rate (Styrränta)

The central interest rate managed by Riksbanken to influence borrowing costs and spending levels across the economy in order to stabilize economic cycles and manage inflation.