Statistics for Edexcel Economics 10. Macroeconomic Strategies and Policies

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Answer Stats

Description	Term	% Correct
That vertical monetarist form of a graph that has the policy implication that only supply-side policy has any effect on real output as manipulation of aggregate demand can only effect the price level	Aggregate Supply Curve	0%
That group of countries which ensured an accumulation of savings and entrepreneurship by encouraging the inward immigration of entrepreneurs and the moving-in of multinational corporations (MNCs)	Asian Tigers	0%
Those countries the rapid development of which was allowed by export-led growth, foreign investment, investment in human capital and infrastructure, the nurturing of macroeconomic and political stability, buoyant international trade, and a focus on high-demand secondary production	Asian Tigers	0%
That which often arises in financial markets between borrowers and lenders, the latter often not knowing the former's ability to repay, and between sellers and purchasers as occurred with securitisation of sub-prime mortgages	Asymmetric Information	0%
That an example of which is if the economy entered a recession, the resulting increase in government expenditure (benefits) and decrease in government revenue (tax receipts) would help maintain aggregate demand and thus offset the recession	Automatic Stabiliser	0%
A process by which government expenditure and revenue varies with the business cycle, thereby helping to stabilise the economy without conscious government intervention	Automatic Stabilisers	0%
That the core functions of which are issuing notes and coins, handling government tax revenue, expenditure, borrowing, and lending, holding commercial bank deposits (for a charge above bank rate if above the agreed range), managing foreign exchange reserves, promoting monetary and financial stability, acting as lender of last resort, and implementing monetary policy	Bank of England	0%
Aid given directly from one country to another	Bilateral Aid	0%
That which a government does by selling government bonds to the central bank, commercial banks, or the non-bank private sector	Borrow	0%
Narrow money (M0) plus sterling wholesale and retail deposits with monetary financial institutions such as banks and building societies, held both for transaction purposes and as a store of wealth	Broad Money (M4)	0%
Where the price of an asset becomes over-inflated, fueled largely by speculation, eventually bursting when the opportunity cost becomes too great or the utility it offers becomes too little relative to the price	Bubble	0%
That the size of which is perhaps the biggest factor affecting; a government's ability to use fiscal policy, the balance of activity in the economy, and the relative size of the public sector to the private sector	Budget Deficit	0%
That which when run consistently and to a large figure - or when defaulting on debts - has the significant effect of decreased confidence causing a lower credit rating and borrowing to become more expensive	Budget Deficit	0%
The main purpose of fiscal policy, the consensus now being against using it to manage demand	Budget Management	0%
Where government revenue exceeds government spending having the effect of reducing demand-pull inflation	Budget Surplus	0%
A collaboration between commodity suppliers to stabilise price fluctuations by setting maximum and minimum prices, controlling said prices by manipulating supply when necessary	Buffer Stock Scheme	0%
Those schemes which are criticised as it is difficult to know at what to set the minimum and maximum prices due to uncertainty of the equilibrium price, storage is expensive and perhaps unsustainable indefinitely, and non-member countries can undermine them	Buffer Stock Schemes	0%
Institutions that accept deposits from a range of small depositors and make long-term loans for house purchase, with the property acting as collateral on the debt, many having now rebranded as retail banks	Building Societies	0%
The ratio of a bank's capital to its current liabilities and risk-weighted assets	Capital Adequacy Ratio	0%
A rapid flow of assets/money out of a country such as profits in firms in less developed countries being invested abroad where returns are higher	Capital Flight	0%
Those goods the obtaining of by less developed countries may not result in development and growth as stated under the Harrod-Domar Model as such countries often lack the human capital necessary to make productive use of them, something avoided by the Asian Tigers due to their well established British or Japanese colonial education systems	Capital Goods	0%
The ratio showing the amount of capital required to produce a unit of output, the lower the ratio the higher the capital productivity	Capital-Output Ratio	0%
The banker to the government, performing a range of functions which may include issue of coins and banknotes, acting as banker to the commercial banks, and acting as regulator of the financial system	Central Bank	0%
Saleable certificates issued by banks to customers such as large firms in return for a fixed term deposit	Certificate of Deposit (CD)	0%
A model of how real goods and services, and money flows in the economy, there being long-term equilibrium whereby withdrawals (W) = injections (J)	Circular Flow of Income	0%
That model which assumes that there is long-term equilibrium, i.e. withdrawals (W) (i.e. savings (S) + taxation (T) + imports (M)) equal injections (J) (i.e. investment () + government expenditure (G) + exports (X))	Circular Flow of Income Model	0%
That the maintenance of which is considered crucial to the improvement or maintenance of international competitiveness	Comparative Advantage	0%
Those two things which a country may use when policy measures (supply side, etc.) are insufficient to achieve macroeconomic objectives, alphabetically	Controls and Regulations	0%
That which harms development as it directs tax revenue, foreign aid, loans, etc. away from investment, etc. and thus discourages foreign aid, loans, and foreign direct investment from occurring due to a lack of confidence and potential extra costs (bribes, etc.)	Corruption	0%
A process by which can increase in money supply such as from the central bank can have a multiplier effect on the amount of credit in an economy making it difficult for a central bank to control the money supply, calculated as 1 ÷ the fraction of assets the bank holds in liquid form	Credit Multiplier	0%
A process by which a decrease in government expenditure increases the ability of the private sector to invest by lowering the cost of borrowing (interest rates)	Crowding In	0%
A process by which an increase in government expenditure reduces the ability of the private sector to invest by raising the cost of borrowing (interest rates) as may occur due to government deficit financing, thereby weakening the multiplier effect	Crowding Out	0%
A fiscal deficit caused by fluctuations in economic activity due to the economy cycle, disappearing when the economy recovers	Cyclical Deficit	0%
The reduction or forgiving of less developed countries' debts to developed countries to ease the large repayments burden they face, criticised for encouraging unsustainable borrowing, and helping finance corruption and military expenditure	Debt Relief	0%
Those numerical divisions such as of ten often used for measuring income distribution and inequality as they take into account such variations, unlike GNI per Capita (PPP$)	Deciles	0%
A preference to save money for consumption later, the reward for doing so being the real interest rate (negative in the UK since 2009)	Deferred gratification	0%
A pattern notable in most developed countries though not so for recently developing countries where development and better healthcare, incomes, etc. reduces the death rate and later the birth rate as social norms change (more women work (children have a higher opportunity cost)), leading eventually to population stability	Demographic Transition	0%
A measure showing the number of dependents (people age 0 - 14 and 65+) in relation to the total population aged 15 to 64, being high in many less developed countries, Japan being the highest such developed country at 46th worldwide	Dependency Ratio	0%
Countries with relatively high income in which a high proportion of the labour force is employed in secondary and tertiary production, such as Europe, North America, Australia, Russia, and Japan	Developed Countries	0%
Those three categories of development that superseded the First World, Second World, and Third World classification	Developed Countries, Developing Countries, Less Developed Countries	0%
Countries that are building up their industrial base and moving away from primary production including newly industrialised countries (NICs) like Thailand, emerging economies like India, middle-income countries like Peru, and some very low-income countries in Asia and Sub-Saharan Africa	Developing Countries	0%
Those countries that are characterised by low per capita income, poor living standards, low investment in human capital, low productivity, low savings ratios, a high proportion of the population being employed in primary production, a lack of diversification in production, poor financial infrastructure, unemployment, underemployment, etc.	Developing Countries	0%
That according to which countries used to be categorised as First World, Second World, or Third World	Development	0%
That which can increased in LDCs by three outside injections into the Harrod-Domar Model, namely, foreign aid, foreign direct investment such as from multinational corporations (though profits may be repatriated out of the LDC), and borrowing, though this can cause unsustainable levels of debt	Development	0%
A loosely defined and debated term being broadly the increase in a population's welfare as measured both qualitatively and quantitatively such as through income	Development	0%
The relationship between the interest rate and the marginal propensity to save	Direct	0%
That type of tax the advantages of which are that they provide a high yield, are relatively cheap and convenient to collect, are often progressive, and are automatic stabilisers	Direct Taxes	0%
That type of tax the disadvantages of which are that they may disincentivise work and investment if the marginal rate of tax is too great, may reduce tax revenue if set too high on the Lagger Curve, and require a relatively high literacy rate making them less suited to LDCs	Direct Taxes	0%
Changes to taxes and benefits in addition to the effects of automatic stabilisers, to lessen the negative effects of recession or overheating	Discretionary Fiscal Policy	0%
That type of policy the government must balance with allowing automatic stabilisers to work as if it is used too much it could result in recession or overheating	Discretionary Fiscal Policy	0%
The trend in UK government consumption expenditure (though steady since the mid-1990s and still higher than countries like Japan, the USA, and Germany), set against a backdrop of privatisation	Downward	0%
An increase in the available of life sustaining goods and services, the expansion of people's ability to make economic and social choices free from exploitation, dependence, and ignorance, and the enhancement of material well-being and self esteem via higher incomes, more jobs, better education, and more attention to cultural and human values	Economic Development	0%
That the most fundamental macroeconomic policy objective of which is to cause or create an environment in which it can flourish	Economic Growth	0%
That the affects of which on development is most determined by the way it is achieved, how the benefits are shares, and the extent to which it is accompanies by costs	Economic Growth	0%
That which can lead to development by increasing the output of goods and services, usually increasing people's standard of living and potential investment in healthcare, education, and infrastructure	Economic Growth	0%
That which may harm development if a rise in output is achieved via longer working hours and more pollution, as well as a fall in life expectancy or a reduction in human rights	Economic Growth	0%
That which in the absence of, countries may try to alleviate poverty and inequality by implementing macroeconomic policies such as progressive taxes or welfare benefits that will improve income distribution and the living standards of the poorest in society	Economic Growth	0%
That which appears on the money demand and supply curve where the downward sloping money demand curve meets the perfectly inelastic money supply curve	Equilibrium Interest Rate	0%
The term often used in financial journalism for shares in a public limited company	Equities	0%
That which high interest rates could increase as they would increase demand for sterling	Exchange Rate	0%
That which high taxes may decrease as they would decrease demand for sterling	Exchange Rate	0%
Where economic growth is achieved through exploitation of economies of scale, made possible by focusing on exports and so reaching a wider market that would be available, as practiced by the Asian Tigers	Export-led Growth	0%
A market oriented strategy for development in which a country tries to make domestic producers more competitive on the world market, and thus earn more foreign exchange, such as Cote d'Ivoire moving from producing unprocessed cashew nuts to processed cashew nuts (2020)	Export Promotion	0%
That policy the success of which is largely dependent on the position of the world economy, the structure of an barriers to trade present in the markets on which the country focuses, and the skills and technical standards available domestically	Export Promotion	0%
That the three types of which are economic such as the financial crisis, natural such as the 2011 Japanese tsunami, and political such as the 2019 election defeat of Argentina President Macri	External Shock	0%
Those schemes that are criticised for having limited coverage, being excessively bureaucratic, and for artificially supporting sunset industries, slowing down a move to markets with better long-term prospects	Fair Trade Schemes	0%
Schemes which source commodities while ensuring that the producers receive an income commensurate with the value of their product and labour with an additional premium for reinvestment and community projects	Fair Trade Schemes	0%
Those three things that the public sector can crowd out the private sector from, alphabetically	Finance, Markets, and Resources	0%
That event the lead up to which saw much moral hazard in the banking industry due to the belief that governments would bail them out if they made losses severe enough to threaten their stability and that of the financial sector, subsequently confirmed	Financial Crisis	0%
That which caused by a move from shares (dividends on which can be suspended) to bonds, a low capital adequacy ratio, and low liquidity due to excessive securitisation having caused asymmetric information, over-speculation (bubbles), moral hazard, and externalities such as a decrease in confidence in the banking system once said event first begun	Financial Crisis	0%
That the most common examples of which are; shares, bonds, certificates of deposit, and securitisation	Financial Instrument	0%
Institutions such as banks and building societies that channel funds from lenders to borrowers	Financial Intermediaries	0%
That sector the functions of which are to facilitate saving and lending, facilitate the exchange of goods and services, provide forward markets in commodities and currency, and to provide a market for equities	Financial Sector	0%
That sector the principal role of which is to ensure liquidity, i.e. a sufficient flow of money and credit to enable saving and borrowing and thus allow product markets and transactions to operate smoothly	Financial Sector	0%
A situation in which there is a sufficient and efficient flow of liquidity in the economy	Financial Stability	0%
When government spending exceeds government revenue in a given time period, raising aggregate demand and reducing any negative output gap, being either cyclical or structural	Fiscal Deficit	0%
That the size of which is most affected by the amount spent by government in relation to income such as due to electoral promises or policy commitments, policy decisions (public sector wage increases, infrastructure investment, etc.) and unavoidable increased in transfer payments	Fiscal Deficit	0%
That type of policy the use of which to counter a recession is subject to severe time lags in recognising the problem, implementing the measures, and effecting a change in behaviour, while it may also lead to higher public sector debt if the government doesn't run a surplus during a boom to match the deficit in a recession	Fiscal Policy	0%
That type of policy the prime goal of which since the financial crisis has been to reduce the net debt accumulated during the crisis, mostly in the form of austerity	Fiscal Policy	0%
That type of policy the sustainability of which is centred on the notion that taxpayers should only fund expenditure that will benefit their own generation, and future taxpayers should not have to pay for government expenditure (borrowing) incurred for the benefit of earlier generations	Fiscal Policy	0%
That type of policy the problems with which are that it can be inflexible, taking time to amend, can cause crowding out and is subject to time lags and knowledge gaps (such as the size of the multiplier)	Fiscal Policy	0%
That type of policy the constraints on the use of which are that it will have a small impact in countries with small public sectors and limited government revenue and expenditure such as less developed countries and can be diluted by a need to remain internationally competitive	Fiscal Policy	0%
That policy the primary objectives of which are to correct for market failure (public goods, externalities, etc.) and reduce x-inefficiency (together with the previous achieving a public-private sector balance) and to influence income distribution	Fiscal Policy	0%
A system where all incomes are taxed at the same rate, making payment and collection easier and encouraging more labour input, working hours, and foreign direct investment, though also being regressive where a sufficiently high payment threshold is not set	Flat Tax System	0%
That which might not ensure a net flow from developed to developing countries if it is exceeded by the interest and capital repayments made on past borrowing (debt repayments)	Foreign Aid	0%
Where a less developed country is unable to export the goods which it can't produce domestically, necessary for development, because of a shortage of foreign exchange, avoided by the Asian Tigers due to export-led growth	Foreign Currency Gap	0%
That which multinational corporations may do in developing countries so as to gain access to its markets, reduce the amount of tax paid, reduce production costs, especially labour (i.e India has low wages but increasingly good education and skills), and face lower regulations	Foreign Direct Investment (FDI)	0%
That which less developed countries may experience a shortage of due to an over-reliance on cheap primary product exports, a lack of confidence in the country's product quality, and trade barriers or subsidies in developed countries such as of US steel, making LDC exports uncompetitive	Foreign Exchange	0%
The ability to agree to purchase an item or quantity of a commodity at a future date at a price agreed at the time of the agreement, being used in a futures market, often for the purpose of speculation such as with oil	Forward Contract	0%
That which some countries may display a relatively low tax revenue to due to an ideology favouring less government expenditure (USA), a wish to attract foreign direct investment, a lack of administrative efficiency or effectiveness, or high levels of poverty and subsistence living (Ethiopia), etc.	GDP	0%
That which constrains the use of fiscal policy as it may place downward pressure on tax rates by necessitating competition in tax rates between countries, limiting the way in which said policy can be used	Globalisation	0%
The average level of income per person in the population of a country measured in purchasing power parity dollars so as to eliminate the effect of exchange rate variation, commonly used as a measure of development	GNI per Capita (PPP$)	0%
That measure which is criticised as a measure of development as it doesn't take into account the informal economy (50.2% of total employment in Ethiopia in 1999) or income distribution and inequality	GNI per Capita (PPP$)	0%
The 1997 - 2010 UK government rule stating that on average over the economic cycle, the government should borrow only to invest and not to fund current expenditure effectively at future generation's expense	Golden Rule of Fiscal Policy	0%
Spending by government on capital projects such as infrastructure or new NHS equipment	Government Capital Expenditure	0%
Spending by the government on goods and services	Government Consumption Expenditure/Current Spending	0%
That spending the three types of which are; capital spending, current spending, and transfer payments	Government Expenditure	0%
That which can be influenced by demographic trends (aging population), public expectations of public sector quality, advances in technology (new equipment needed for NHS), needs to improve human capital, the need to remain internationally competitive, international commitments (NATO defence spending), etc.	Government Spending	0%
A Bangladeshi microfinance initiative, the first of its kind in the world, which has generated employment, reduced inactivity, and raised income and living conditions particuarly for women	Grameen Bank	0%
A model of economic growth centred on savings and investment, that to achieve growth, the growth rate (∆Y/Y) must equal the savings ratio (s) divided by the capital-output ratio (k): ∆Y/Y=s/k	Harrod-Domar Model	0%
An initiative launched in 1995 and relaxed in 2005 to provide debt relief for heavily indebted poor countries, difficult to evaluate given the simultaneous reduction in debt-service levels in recent years	Heavily Indebted Poor Countries (HIPC) Initiative	0%
That virus and subsequent syndrome that has much harmed development in Sub-Saharan Africa by reducing productivity and increasing health expenditure	HIV and AIDS	0%
That which countries may try and improve so as to encourage economic growth, by investing in education and training allowing for the production of higher value-added output, as well as in healthcare, together assuming wages increase, helping to break the poverty cycle	Human Capital	0%
The expansion of people's freedom to live long, healthy, and creative lives, to advance goals they value, and to engage actively in shaping development equitably and sustainable on a shared planet	Human Development	0%
A composite indicator of a country's development, varying between 0 (very low) to 1 (very high), based on resources available (GNI per capita (PPP$)), life expectancy at birth, and knowledge (mean and expected years of schooling (depending on age)	Human Development Index	0%
That which is divided into four tiers, namely; very high human development (0.8 - 1.0), high human development (0.7 - 0.79), medium human development (0.55 - 0.69), and low human development (below 0 - 0.54)	Human Development Index	0%
A market oriented strategy for development where policies such as tariffs are employed to increase domestic production of previously imported goods, thereby protecting infant industries and saving foreign exchange for investment	Import Substitution	0%
That which is criticised for causing a deadweight loss by redistributing consumer surplus to government and producers while also reducing the incentive (or ability if the domestic market is small) for firms to increase efficiency and reap economies of scale	Import Substitution	0%
That type of tax the disadvantages of which are that they may disincentivise consumption and thus reduce output, are regressive, the level at which they are set is prone to information failure, and they can cause inflation via a general increase in the price level	Indirect Taxes	0%
That type of tax the advantages of which are that they provide a high yield, are relatively cheap to collect, can discourage consumption or demerit goods, and can be automatic stabilisers as in the case of VAT	Indirect Taxes	0%
A process of transforming an economy by expanding manufacturing and other industrial activity	Industrialisation	0%
That which is most often compared in two forms, either between countries, or within societies	Inequality	0%
That which globalisation may reduce by increasing the availability of cheap imports	Inflationary Pressure	0%
That which globalisation may increase by increasing demand from emerging economies, placing upward pressure on prices	Inflationary Pressure	0%
That which when of limited quality or quantity can harm development by impeding trade and thus the earning of foreign exchange, increasing geographic immobility, and deterring foreign direct investment	Infrastructure	0%
A preference to spend income shortly after it is received, often being facilitated by borrowing (now increasingly common), the cost of doing so being the interest rate	Instant Gratification	0%
Borrowing and lending between banks to manage their liquidity and other requirements in the short-run, the average rate of interest on such in the London market being known as the LIBOR	Interbank Lending	0%
The opportunity cost of holding (not saving) money as doing so forgoes the option of purchasing financial assets such as bonds which yield a rate of return	Interest Rate	0%
Those which when low may increase international competitiveness as it may attract foreign direct investment (FDI) due to the low cost of borrowing	Interest Rates	0%
Those changes in which to achieve macroeconomic objectives is problematic as they are subject to time lags, may not be effective if the transmission mechanism is interrupted by firms instead borrowing from abroad, can cause liquidity traps, and can reduce confidence in the economy	Interest Rates	0%
That which monetary policy usually focuses more on than directly changing the money supply as the money supply is difficult to measure and said factor is particularly effective in countries with high household debt	Interest Rates	0%
That a rise in which would reduce demand-pull inflation but increase cost-push inflation by raising the cost of firms' past borrowing	Interest Rates	0%
Those which when low in less developed countries sometimes prevent borrowing for investment because people don't deposit savings from which borrowed money is sources due to the low returns available	Interest Rates	0%
A multilateral institution that provides short term financing for countries experiencing balance of payments problems in exchange for the implementation of policies to address the problem long-term	International Monetary Fund (IMF)	0%
Those strategies for development the principal examples of which are; development of human capital, protectionism, managed exchange rates, infrastructure development, joint ventures with multinational corporations (increasing training and ensuring all profits aren't repatriated), and buffer stock schemes	Interventionist Strategies	0%
The relationship between the interest rate and borrowing	Inverse	0%
Banking according to the provisos of Sharia Law, not charging interest but making profit instead through equity participation, sharing the profits of projects it loans money to	Islamic Banking	0%
A group of economists who believed that the macroeconomy could settle in an equilibrium that was below full employment	Keynesian School	0%
A hump shaped curve plotting tax revenue against the tax rate showing that such revenues increase as the rate does up to the point when people's incentives to work are reduced sufficiently that the relationship becomes inverse	Laffer Curve	0%
That region the development of which can be differentiated from that in East Asia as it was unsustainable, attracting less foreign investment and seeing high rates of inflation due to funding growth via printing money and accumulating vast debts	Latin America	0%
The role of the central bank in guaranteeing sufficient liquidity is available in the monetary system	Lender of Last Resort	0%
Those countries which try to develop their primary industries by exploiting their factor endowments and absolute of comparative advantage, diversifying, processing more products, and raising productivity to release labour for the secondary and tertiary sectors, increasing price competitiveness and thus export revenue	Less Developed Countries	0%
Those countries that often don't borrow money from foreign private sector sources like foreign commercial banks as they face difficulty in obtaining such loans and may struggle to repay the debt if; interest rates increase, there is a fall in exports, the project the loan funded was unsuccessful, etc.	Less Developed Countries	0%
Countries with very low income in which a high proportion of the labour force is employed in primary production, such as Afghanistan or the Central African Republic	Less Developed Countries	0%
Those countries that face problems from multinational companies and globalisation in that they become less able to negotiate effectively and thus face downward pressure on taxes and regulations	Less Developed Countries	0%
Those countries in which land ownership is a problem as plot sized decline in successive generations due to being divided between sons, subsistence farmers often have no formal deeds to prove ownership as collateral for credit to improve efficiency, where such financial institutions even exist of are active rurally, etc.	Less Developed Countries	0%
Those countries that often rely on overseas assistance and borrowing to raise funds for investment	Less Developed Countries	0%
Those countries in which the presence of MNCs may lead to a net currency outflow if the repatriation of profits and foreign worker wages, and the cost of purchasing imports exceeds the capital flow and contribution to exports	Less Developed Countries	0%
Those countries from which outward migration such as to developed countries with declining populations can increase the dependency ratio, reduce productivity, and discourage multinational corporations (MNCs) from moving in, though also see knowledge and remittances returned home	Less Developed Countries	0%
That economic model criticised for not taking into account a lack of job vacancies, occupational immobility, negative externalities caused by rapid urbanisation, or a lack of reinvestment (repatriation of profits, etc.) while also encouraging the neglect of the rural sector by governments, causing stagnating productivity and increasing rural-urban inequality	Lewis Two-Sector Model	0%
A model of economic development that argues that there is a surplus of rural labour in developing countries resulting in a marginal product of labour in agriculture of zero, meaning that an increase in industrial sector wages would cause workers to transfer to urban areas, increasing productivity and investment in industry without reducing it in agriculture	Lewis Two-Sector Model	0%
The average rate of interest on interbank lending in the London market which alongside the bank rate is one of the two main determinants of interest rates generally	LIBOR	0%
The ease with which an asset can be turned into money / the state of being able to conduct exchange with available money	Liquidity	0%
A theory that suggests that people desire to hold money as an asset	Liquidity Preference	0%
The ratio of liquid assets to total assets, important for a financial institution to balance so as to remain profitable while also retaining sufficient liquid assets to cover withdrawals by depositors	Liquidity Ratio	0%
Where the interest rate is so low that any increase in the money supply will not be able to lower it further	Liquidity Trap	0%
One of the principal things affected by government expenditure alongside productivity and growth (education, infrastructure, etc.), public-private sector balance, equality, etc.	Living Standards	0%
Where a storage of capital results in low per capita incomes, causing low savings, and thus keeping investment low, which then results back in a shortage of capital	Low-Level Equilibrium Trap	0%
Those objectives of the government the principal examples of which are to ensure international competitiveness, an acceptable distribution of income and wealth, and to achieve sustainable economic growth in part by maintaining economic stability	Macroeconomic Objectives	0%
That type of policy the main constraints on formulating it are that the information on which to base it takes time to collect with extensive amounts of such being difficult and expensive to do so and where taken from surveys may not be honest or representative, people don't always behave rationally, external shocks can often not be predicted or effectively planned for, and policy objectives may conflict with one another	Macroeconomic Policy	0%
That type of policy the primary objective of which are sustainable economic growth, the alleviation of poverty and inequality, macroeconomic stability, full employment, improving international competitiveness and a reasonable balance of payments position, and to correct market failure	Macroeconomic Policy	0%
That which governments try to achieve via monetary stability such as maintaining a low and stable inflation rate, financial stability such as maintaining sufficient liquidity, fiscal stability such as reducing fiscal deficits and the national debt, and policies allowing for the accommodation of external shocks	Macroeconomic Stability	0%
The model which explains firms' investment decisions in terms of the expected returns from that investment, questioned as many consider extrapolated future demand to be more relevant	Marginal Efficiency of Capital	0%
That which largely determines the size of the multiplier effect	Marginal Propensity to Withdraw	0%
The percentage of additional income paid as tax	Marginal Rate of Tax	0%
That which less developed countries go about correcting by developing or establishing those markets which are lacking, particularly financial markets, and improving the terms and efficiency of overseas assistance, international borrowing, or foreign direct investment (FDI)	Market Failure	0%
The notion that households are influenced by the interest rate in making saving decisions, which will then determine the quantity of loanable funds available for firms to borrow for investment	Market for Loanable Funds	0%
Those strategies for development the principal examples of which are; trade liberalisation, foreign direct investment, removal of government involvement, floating exchange rates, microfinance, and privatisation	Market Oriented Strategies	0%
That which a reduction in government involvement may be, taking the form of privatisation, a reduction in or removal of subsidies or price controls, possibly incentivising increased efficiency and leading to increased competitiveness, or having a floating exchange rate instilling discipline causing a country to live within its means, thus incentivising efficiency	Market Oriented Strategies for Development	0%
The provision of loans and credit to small scale enterprises particularly in less developed countries and in rural areas so as to allow lower deciles to save and borrow while avoiding local high-interest moneylenders, reducing poverty and increasing entrepreneurship	Microfinance	0%
That, an example of which being the Grameen Bank, which is criticised as many people lack the educational or entrepreneurial skills necessary to take advantage of it while there is also no guarantee people won't spend the money to cover basic needs and living costs rather than investment	Microfinance	0%
That piece of technology which has helped rural labourers in less developed countries combat knowledge gaps and exploitation by better informed traders and buyers	Mobile Phones	0%
A group of economists prominent in the 1970s who believed that the macroeconomy always adjusts rapidly to the full-employment level of ouput, and that monetary policy should be the prime instrument for stabilising the economy	Monetarist School	0%
The type of macroeconomic policy that the UK government yielded the use of	Monetary Policy	0%
That type of policy which includes interest rates, the money supply, and the exchange rate, only one of which can be controlled at any one time	Monetary Policy	0%
That type of policy the effect of a fixed exchange rate on which is that it cannot be used to manipulate the money supply, inflation, or interest rate as this would come at the expense of maintaining the exchange rate	Monetary Policy	0%
The nine member (four being appointed by the Chancellor) body of the Bank of England which meets eight times a year to act on its responsibility over the conduct of monetary policy	Monetary Policy Committee	0%
A situation in which there is stability in prices relative to the government's inflation target	Monetary Stability	0%
That which individuals and firms might hold (not save) so as to facilitate transactions (largely dependent on income), ensure liquidity as a precautionary measure against sudden payments or opportunities (largely influenced by the interest rate), and to speculate on the future value of financial assets (largely determined by the interest rate and the price of said assets)	Money	0%
That for which to perform its functions it must have characteristics of; portability, divisibility, acceptability, scarcity, durability, and stability in value	Money	0%
Usually untied aid given by a group of countries in the form of international organisations (IMF, UN, EU, etc.) or non-governmental organisations (NGOs) (Oxfam, Save the Children, etc.)	Multilateral Aid	0%
Those the presence of which is less developed countries can be disadvantageous as they can lead to a net currency outflow, a lack of employment due to using capital-intensive rather than labour-intensive methods, and negative externalities such as child labour, pollution, and depletion of non-renewable resources due to looser regulations	Multinational Corporations	0%
Those the presence of which in less developed countries can be a benefit as it can cause an inflow of foreign exchange, an increase in exports, reduced demand for imports (if some output is sold domestically), an increase in employment (assuming they complement rather than substitute domestic firms), and skills training, a rise in incomes, consumption and tax revenue, and technology transfer	Multinational Corporations	0%
A measure of the amount of money counting only notes and coins in circulation and commercial banks' deposits at the Bank of England, all being perfectly liquid and held for transaction purposes, though no longer used since the rise of electronic payment	Narrow Money (M0)	0%
The total government debt owed by a country, based on accumulated previous deficits and surpluses	National Debt	0%
The long-run equilibrium level of output to which monetarists believe the macroeconomy will always trend, resulting in a vertical long-run aggregate supply curve	Natural Rate of Output	0%
The unemployment rate that exists when the economy is in long-run equilibrium	Natural Rate of Unemployment	0%
Aid provided to less developed countries for economic, humanitarian, or political reasons, criticised for being too low, being lost to inefficiency and corruption, being tied to poorly selected projects (now less common), and for potentially increasing the less developed countries' exchange rate, reducing its competitiveness	Official Development Assistance	0%
That an example of which in firms investing by using past profits is the interest rate that could have been earned by purchasing financial assets or saving	Opportunity Cost	0%
That the growth of which governments try to limit by; fining couples who have more than a certain number of children and giving financial incentives to have fewer children (though this can cause infanticide and child trading, particularly of girls), or providing contraceptives, a welfare system that reduces the incentive to have more children, or by better education women and girls	Population	0%
That the growth of which can increase development as it will result in more people being available for labour and production, thereby increasing output and incomes, and thus potentially expenditure and investment ceteris paribus	Population	0%
That the growth of which can harm development by increasing the strain on a country's services such as sanitation, healthcare, and education, especially where growth is rapid, causing this factor to become large, young, and dependent, while also leading to environmental degradation, depletion of resources, and mother's leaving the labour force	Population	0%
Those governments most affected by inexperience and vanity - harmful to development due to inefficiency and diversion of money to vanity projects - such as the government of Jean-Bédel Bokassa declaring himself emperor of Central Africa and spending over a twelfth of the country's GDP on his Napoleonic style coronation	Post-Colonial Government	0%
The word used to describe current economic ideas and circumstances	Postmodern	0%
Where low employment opportunities result in low incomes for most, preventing saving due to earners having no surplus, resulting in a lack of funds for borrowing, and therefore a lack of capital investment leading to low employment opportunities	Poverty Cycle	0%
A hypothesis that the price of primary commodities declines relative to the price of manufactured goods over time, causing the terms of trade of primary product-based economies to deteriorate	Prebisch-Singer Hypothesis	0%
That type of good, the reliance on which by less developed countries is problematic as they face price volatility, a lack of efficiency gains may harm the terms of trade, and isolated rural areas have little knowledge of what is a good price to sell their crop to traders for, leading to exploitation	Primary Goods	0%
Those products the prices of which can be kept low due to plentiful supply, improvements in technology allowing for synthetic substitutes, and increased efficiency	Primary Products	0%
Those products the prices of which are volatile - making income forecasts for those economies reliant on them unreliable - because of the development of substitutes (aluminium replacing tin), weather, inelastic demand and supply making price vulnerable to changes in such, depletion and discovery rates of resources, and demand being heavily reliant on the performance of developed and some emerging economies	Primary Products	0%
That sector the development of which by less developed countries has disadvantages such as the destruction of natural habitats for agriculture and the reduction in food produce due to diversification toward flowers (in Kenya, etc.) and biofuels seeing domestic food prices rise	Primary Sector	0%
A company in which the ability to invest is limited to a small group of 'invited' shareholders, limiting liabilities but also reducing the liquidity of shares reducing the ability to raise large amounts of capital	Private Limited Company	0%
An organisation formed in the wake of the financial crisis wholly owned by the Bank of England, responsible for the supervision of banks, building societies, credit unions, insurers, and investment firms, in the form of ensuring they control risk and hold adequate capital and liquidity	Prudential Regulation Authority	0%
The official name for the way in which a budget surplus is used to pay down government debt, though such a move is discretionary and such a surplus may be spent elsewhere if interest rates on said debt are low	Public Sector Debt Repayment (PSDR)	0%
The amount the government must borrow each year to cover the fiscal deficit	Public Sector Net Cash Requirement (PSNCR)	0%
That example of monetary policy aimed directly at the money supply	Quantitative Easing	0%
That political consideration that often affects government decisions on tax rates and public sector investment	Re-election	0%
That type of inflow into an economy which has seen large increases since 1990, possibly due to globalisation, comprising nearly a third of Liberia's GDP in 2015	Remittances	0%
A sale and repurchase agreement whereby one financial institution sells a financial asset to another with an agreement to buy it back at an agreed future date so as to accommodate a short-run shortage of funds	Repo	0%
One of the two traditional banking sectors, providing high-street services to depositors (households, small firms, etc.) mainly on a relatively small scale, and providing a distributed branch banking service	Retail Banks	0%
That economic model criticised for describing economic history rather than examining and explaining causes or acknowledging barriers to growth	Rostow's Stages of Economic Growth Model	0%
A model of economic growth that sets out five stages developing countries pass through, from an agrarian society to increased productivity to rising investment to balanced growth to consumerism	Rostow's Stages of Economic Growth Model	0%
That which in a less developed country may not allow for investment as stated under the Harrod-Domar Model as there is often not many skilled entrepreneurs with the knowledge to identify and exploit investment opportunities, while most people particularly rural persons don't use financial institutions (i.e. keeping money under the bed) which is not then available for firms or entrepreneurs to borrow	Saving	0%
A loan backed up by collateral such as a mortgage or government security, therefore incurring a lower interest rate due to the smaller risk to the lender	Secured Loan	0%
A process whereby future cash flows are converted into marketable securities (financial assets) such as selling a stock of residential mortgages, allowing for a bank to hold fewer liquid assets, but also being vulnerable to asymmetric information	Securitisation	0%
A common form of land tenure in less developed countries in which the landlord and tenant divide the crop yield between themselves, sharing the risk but not incentivising an increase in efficiency on the part of the tenant while also allowing for asymmetric information and the principal-agent problem	Sharecropping	0%
That the two largest bodies of which are pension funds and insurance companies	Shareholders	0%
Qualities exhibited by members of a society, such as honesty and trust which enable people and organisations to work together effectively, fairly, and efficiently	Social Capital	0%
That which the government must consider the presence of in using government spending (discretionary fiscal policy) to achieve an expansion in aggregate demand as if there is none then an expansion in aggregate demand will merely increase the price level, leaving real output unchanged	Spare Capacity	0%
A fiscal deficit caused by spending and taxation decisions separate from the position of an economy in the economic cycle, not being linked to said cycle and thus able to exist at full employment	Structural Deficit	0%
That region that has failed to develop - its GNI per capita being lower in 2000 than in 1975 - as it has specialised in primary production of plentiful or low-demand goods while seeing little domestic and foreign investment, alongside endemic corruption	Sub-Saharan Africa	0%
Those policies the use of which is problematic as they may be subject to time lags, may be inflationary, can have a high opportunity cost, may increase a negative output gap if there is a sustained lack of aggregate demand, and could reduce macroeconomic performance	Supply Side Policies	0%
That type of macroeconomic policy that is often the most effective for less developed countries as the financial sector remains too underdeveloped for the effective use of monetary policy and fiscal policy is hampered by an ineffective bureaucracy, large informal economy, and agrarian subsistence population	Supply Side Policy	0%
That the three types of which are progressive (taking a higher percentage from those with higher incomes), proportional (taking the same percentage from all), and regressive (taking a higher percentage from those with lower incomes)	Tax	0%
That the principal purposes of which is to finance government expenditure, tackle market failure, influence income distribution, protect domestic industries, and influence aggregate demand	Taxation	0%
The process by which technology and skills are acquired by less developed countries from more developed ones	Technology Transfer	0%
Aid given while stipulating where it is spent or from which country (usually the donor if bilateral aid) products must be purchased	Tied Aid	0%
That the benefit of which to less developed countries is that it creates employment due to being labour intensive, has income-elastic demand, brings in export revenue, makes use of a country's natural resources and increases demand for transport and locally produced goods	Tourism	0%
That the disadvantage of which to less developed countries is that it creates mostly seasonal and unskilled work, may increase demand for imports, may be run by foreign chains possibly repatriating profits, and can damage areas of natural beauty and cultural sites, reducing local quality of life	Tourism	0%
That the goal of which in less developed countries is to increase international trade and thus obtain the foreign exchange necessary to import capital and technology	Trade Liberalisation	0%
A market oriented strategy for development where barriers to international trade are removed or relaxed in order to achieve potential gains in efficiency, etc.	Trade Liberalisation	0%
A payment made in which no goods or services are being paid for such as benefits, subsidies, or EU contributions	Transfer Payments	0%
An internal accounting procedure by which individual branches of a multinational corporation charge each other for the activities they undertake, used by multinational companies to strategically base branches in countries where the cumulative supply chain will incur the least tax	Transfer Pricing	0%
Those the cutting of which could actually increase unemployment as they would not increase the jobs available if unemployment is cyclical and thus would cause the unemployed to consume less, reducing aggregate demand, and causing more unemployment	Unemployment Benefits	0%
Banks that operate in both retail and wholesale markets, the formation of which was much facilitated by deregulation and internet banking having reduced the need for branch networks	Universal Banks	0%
A loan not backed up by collateral such as an overdraft or credit card, therefore incurring a higher interest rate due to the greater risk for the lender	Unsecured Loan	0%
That type of internal migration that is prevalent in less developed countries in addition to substantial outward migration	Urbanisation	0%
The rate at which money changes hands calculated as the volume of transactions (real income (Y) × average price level (P)) ÷ the money stock	Velocity of Circulation (V)	0%
A repeating cycle of beneficial circumstances such as is suggested by Rostow's Stages of Economic Growth Model	Virtuous Cycle of Development	0%
That which harms development as it reduces the labour force via injury, death, and emigration, destroys infrastructure and buildings, disrupts work and education, makes some land unusable, diverts resources towards weapons, and discourages international trade and foreign direct investment	War	0%
One of the two traditional banking sectors, taking deposits and making loans to companies and other banks on a large scale, examples being investment banks and other specialist institutions	Wholesale Banks	0%
A multilateral organisation that provides financing for long-term development projects, sometimes at reduced interest rates	World Bank	0%