HASS Economics Test 1 Revision

Economics Test 1 Revision Quiz

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole.

GDP economic growth

The increase in a country's total economic output as measured by its Gross Domestic Product (GDP) over a period of time. It is influenced by factors like consumer spending, government policies, and investment levels, and can impact employment rates and living standards.

Unemployment

The state of being without a job despite actively seeking work. It can be caused by factors like economic downturns, technological changes, or lack of necessary skills. Unemployment can lead to reduced consumer spending and lower living standards.

Inflation

The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. Inflation can be caused by factors like increased demand, production costs, or monetary policies. It can affect savings, investments, and living standards.

Living standards

The quality of life experienced by individuals or groups, often measured by factors like income, education, healthcare, and access to basic needs. Living standards are closely related to economic performance as they reflect the overall well-being of a population.

Circular Flow of Income Model

A simplified representation of the flow of goods, services, and money in an economy between households, firms, and the government. It illustrates how resources are allocated, income is generated, and expenditures are made within an economic system.