Year 10 v9 Term 1 Economic terms

Balance

What does 'balance' mean?

• an even distribution of weight or amount; a state of equilibrium

• a financial statement of assets and liabilities

• a type of dance movement

• a method of measuring time

Wages

• Payment received by workers for their labour.

• A type of investment in the stock market.

• A government subsidy for unemployed individuals.

• A fee charged for services rendered by professionals.

Net Foreign Liabilities

• The total amount of a country's external financial assets.

• The difference between a country's external financial assets and liabilities.

• The sum of a country's internal financial assets and liabilities.

• The total debt a country owes to foreign entities.

Inflation

• An increase in the prices of goods and services.

• A decrease in the prices of goods and services.

• A measure of the total value of goods and services produced.

• The rate at which currency is exchanged for foreign currencies.

Real economic growth

• Increases in the volume produced.

• Decreases in unemployment rates.

• Stabilization of prices in the economy.

• Reduction of government spending.

Structural unemployment

• Unemployment caused by a mismatch between job seekers' skills and available job opportunities.

• Unemployment due to seasonal changes in demand for labor.

• Unemployment resulting from economic downturns or recessions.

• Unemployment caused by voluntary resignation from a job.

Deficit 

• the amount by which something, especially a sum of money, is too small.

• a surplus of funds or resources.

• a situation where expenses exceed income.

• a financial plan for future spending.

Labour market

• The interaction between the supply of goods and services and their demand.

• The supply of labour (from households) and demand for labour (by businesses and other organisations).

• The regulation of wages and salaries by the government.

• The total number of jobs available in a country.

Participation rate

• The percentage of the working-age population that is part of the labour force.

• The total number of unemployed individuals in a country.

• The ratio of employed individuals to the total population.

• The percentage of the population that is not in the labour force.

Reserve currency

• A currency that is only used domestically.

• A strong currency widely used in international trade that a central bank is prepared to hold as part of its foreign exchange reserves.

• A currency that is not accepted for international trade.

• A currency that is only used for online transactions.