Statistics for Edexcel Economics 4. The UK Economy - Performance Measures

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General Stats

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The average score is 8 of 20

Answer Stats

Description	Term	% Correct
That which is principally done for development of new products, expansion into new markets, training and developing staff, and putting money into new technology	Investment	100%
A period of perhaps ten or twenty+ years in macroeconomic terms	long run	100%
Exports - imports =	Net exports	100%
The speed at which the economy is actually growing even if not all factors of production are being used	Actual Growth	0%
The total amount of spending on goods and services produced in an economy during a period of time	Aggregate Demand	0%
Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (X-M) =	Aggregate Demand	0%
A graph with a negative slope that plots total demand in terms of real Gross Domestic Product against the price level	Aggregate Demand Curve	0%
The total wages and salaries earned by people from employment, total rents received from people who let property, total interest earned by people from savings and investmentrs, and total profits earned by shareholders and the self employed	Aggregate Income	0%
The total volume of goods and services that all firms in the economy are willing and able to sell at a given price level in a given period	Aggregate Supply	0%
That, the four components of which are; consumer goods and services, capital goods and services, public and merit goods, and goods and services sold as exports	Aggregate Supply	0%
A graph showing aggregate supply in terms of real Gross Domestic Product against the price level in either the short-run or long-run	Aggregate Supply Curve	0%
Government expenditure not affected by the level of real income in the economy as it is bound by existing systems and commitments such as the state pension	Automatic/Autonomous/Non-Discretionary Expenditure	0%
Household consumption ÷ disposable income =	Average propensity to consume	0%
The proportion of income that households devote to consumption	Average Propensity to Consume	0%
That which can be sub-divided into the current account, capital account, and financial account?	Balance of Payments	0%
Where tax receipts are not sufficient to cover government spending therefore requiring the government to borrow the difference	Budget Deficit	0%
Where tax receipts exceed public spending	Budget Surplus	0%
The volume of goods or services that a firm can produce	Capacity	0%
A type of frictional unemployment consisting of those who do not have regular work and thus find themselves between periods of employment, such as actors	Casual Unemployment	0%
The number of people claiming some form of unemployment benefit as a percentage of the total number of all jobs available	Claimant count rate	0%
That type of long-run aggregate supply curve that appears as a vertical line due to it being perfectly inelastic	Classical	0%
That theory under which an increase in aggregate demand would cause inflation due to aggregate supply being perfectly inelastic	Classical	0%
That theory of long-run aggregate supply that a change in aggregate demand and thus the price level will not affect real output as an economy would reach a point of full employment at which there is no spare capacity	Classical	0%
That which causes an outward shift in the long-run aggregate supply curve as firms are incentivised to lower costs and increase productivity	Competition	0%
That which is criticised for not taking into account variations in price between product groups or changes in quality such as of technology	Consumer Price Index	0%
That which is criticised for not taking into account that individuals consume different products at different rates, with inflation thus affecting some more than others	Consumer Price Index	0%
That which is criticised for watering down the effects of steep price rises in a few products if inflation is very low for all the other products	Consumer Price Index	0%
The principal measure of inflation for most countries including the UK, measured according to the prices of over 700 representative consumer items, updated according to changes in shopping habits every 12 months	Consumer Price Index	0%
That which is encouraged with a rise in wealth ceteris paribus	Consumption	0%
That which is increased by greater consumer confidence in their employment and in the economy	Consumption	0%
The total amount spent by households	Consumption	0%
The theory that inflation is caused by a rise in the prices of firms' inputs - possibly due to a fall in the supply of imports	Cost-push inflation	0%
That, the ease or cheapness in obtaining of which, increases the amount people spend ceteris paribus	credit	0%
A rating of how safe it is to lend a large company money	Creditworthiness	0%
That which can be sub-divided into trade in goods, trade in services, and the balance of trade in goods and services	Current Account	0%
That, which in the short term, is addressed by finding capital funds to balance it such as via borrowing foreign currencies	Current Account Deficit	0%
Where money in the form of foreign currencies spent on imports and investments exceeds money earned from exports and investments	Current Account Deficit	0%
Where money in the form of foreign currencies spent on imports and investments is exceeded by money earned from exports and investments	Current Account Surplus	0%
When people lose their jobs as a result of a lack in aggregate demand due to a fall in economic activity as part of the trade cycle	Cyclical Unemployment	0%
Where prices, wages, and the money supply are falling, possibly leading to an economic recession	Deflation	0%
The theory that inflation is caused by a rise in aggregate demand - due to low unemployment and increases in peoples' incomes and purchasing power - that cannot be immediately matched by an increase in supply	Demand-pull inflation	0%
That which the salient factor to consider when analysing is how it will result in changes in the size and structure of the working population (i.e. retirement age, working population, &c)	Demographics and Migration	0%
The loss of value of capital assets, like machinery and buildings, over time due to wear and tear, weathering, and obsolescence	Depreciation	0%
Those who have been unable to find employment and have thus given up looking	Discouraged workers	0%
Money that the government can choose to spend as it is not bound by existing systems and commitments, such as defence spending	Discretionary Spending	0%
A slowing down of the rate of inflation	Disinflation	0%
Aggregate income - direct taxes + state benefits =	Disposable income	0%
The income that households are able to devote to consumption and saving	Disposable Income	0%
That which is indicated by the economic growth rate, inflation rate, employment and unemployment rates, and the balance of payments position	Economic Performance	0%
That which causes an outward shift in the long-run aggregate supply curve due to its increasing the productivity of employees	Education	0%
That which is not used for calculating Gross National Income due to many countries pegging it to a foreign one thus distorting its natural value, and it being a better reflector of international markets than domestic ones	Exchange Rate	0%
That the increase of which causes an outward shift in the long-run aggregate supply curve as imports become cheaper thereby reducing costs	Exchange Rate	0%
That which inflation may make cheaper due to a resulting fall in confidence of the country abroad causing a fall in the exchange rate	Exports	0%
That which would decrease with an increase in real income as products are diverted to the buoyant home market	Exports	0%
The goods and services produced in the UK that are sold in other countries	exports (X)	0%
Temporary unemployment of people as they move from one job to another	Frictional unemployment	0%
Where a firm must purchase more factors of production in order to produce more	Full Capacity	0%
Where people who are economically active and are willing and able to work at going wage rates are able to find employment	Full employment	0%
That, the three main variables of which are; government expenditure, taxation, and whether or not to run a budget deficit or surplus	Government Fiscal Policy	0%
That which the trade cycle affects, in that during a boom, tax receipts increase and spending on social benefits decreased, while the opposite happens during a slump	Government spending	0%
The amount spent by the government on goods and services	Government Spending	0%
The value of the total expenditure on goods and services in an economy over a given period of time	Gross Domestic Expenditure	0%
The value of the total incomes earned by individuals and businesses in an economy over a given period of time	Gross Domestic Income	0%
The monetary value of all goods and services produced within a country over a specific period of time	Gross Domestic Product	0%
Gross Domestic Product per head of population	Gross Domestic Product per capita	0%
The total amount spent on investment by firms in a given period	Gross investment	0%
That which Bhutan measures its economy in terms of	Gross National Happiness	0%
That measure which is problematic in measuring the standard of living as it doesn't reflect the quality of education, healthcare, &c. or the source of growth	Gross National Income	0%
That which is used for measuring the standard of living	Gross National Income	0%
The value of the total incomes earned by the individuals and businesses national to a certain country regardless of actual place of residence or operation	Gross National Income	0%
The total value of all finished goods and services produced by national of a country regardless of actual place of residence	Gross National Product	0%
That which the comparison of between countries must consider the type of economy, the type of goods and services produced, difference in wealth distribution, income, working hours, and conditions, the prevalence of externalities, the size of the illegal economy (undeclared work), and the informal economy	Growth rate	0%
An index that measures a country's performance based on Gross Domestic Product, Gross National Income per capita, life expectancy at birth, adult literacy, and school enrollment, though not equality, the environment, or political freedom	Human Development Index	0%
Where the longer one is unemployed the more detached they become from their skills thus further harming their ability to find a job	Hysteresis	0%
That which inflation may make more expensive due to a resulting fall in confidence of the country abroad causing a fall in the exchange rate	Imports	0%
That which would increase with an increase in real income as people can afford to consume more	Imports	0%
The goods and services produced in other countries that are bought in the UK	imports (M)	0%
Those who are neither working nor looking for paid employment or self employment	Inactivity	0%
That which is equaled by consumption + saving	Income	0%
Would spending on cleaning up an oil spill on a public beach show up as an increase of decrease of GDP ceteris paribus?	Increase	0%
(Current value)/(Base value)×100=	Index Number	0%
A device for comparing the value of one variable in one period or location with a base observation from another, set at 100	Index number	0%
A rise in the general price level over time and thus a fall in the purchasing power of money, with there being an imbalance between the quantity of goods and services and the quantity of money	Inflation	0%
That which causes a redistributive effect from the poorer members of society to the richer	Inflation	0%
That which can cause people's living standards to decrease except those in key occupations with strong wage bargaining power who are able to push for wage increases thus maintaining their purchasing power	Inflation	0%
That, the symptoms of which are that prices rise, monetary incomes and wages rise, and the amount of money in circulation rises	Inflation	0%
That part of the economy that is neither taxed nor monitored by government and thus does not show up in Gross Domestic Product or Gross National Income, such as growing one's own vegetables, particularly prevalent in developing countries	Informal economy	0%
That organisation which defines the economically inactive as those people over 16 who are not working or seeking work such as full-time students, the sick, disabled, retired, &c.	International Labour Organisation	0%
That organisation which defines those in employment as everyone over 16 who does at least one hour's paid work per week	International Labour Organisation	0%
That organisation which defined the unemployed as those people over 16 who are without work but available and seeking work	International Labour Organisation	0%
A United Nations agency whose role is to set international labour standards	International Labour Organisation	0%
That which governments help firms do by reducing corporation tax or giving subsidies or grants	Invest	0%
That which firms do when they expect the rate of return to exceed the cost	Invest	0%
That which is increased with a higher rate of economic growth ceteris paribus	Investment	0%
The amount spent by firms on capital goods and services	Investment	0%
That which firms obtain the money for by issuing new shares, borrowing from banks, or using past profits	investment	0%
That which is more volatile than consumption due to its greater reliance on expectations for the future	Investment	0%
That which is reduced, as firms' uncertainty increases and confidence decreases	Investment	0%
That which is made more expensive for firms by a higher interest rate ceteris paribus	Investment	0%
Where a person who would like to accept a job at the going wage rate is unable to find employment	Involuntary unemployment	0%
That theory of long-run aggregate supply that an increase in aggregate demand reuslts in a rise in aggregate supply up to the point of full employment, after which supply can rise no further, causing inflation	Keynesian	0%
The average amount of output produced by an employee in a given period of time	Labour Productivity	0%
Change in consumption ÷ change in income =	Marginal propensity to consume	0%
The proportion of additional income households devote to domestic consumption	Marginal Propensity to Consume	0%
The proportion of an increase in disposable income that households would devote to saving	Marginal Propensity to Save	0%
That demographic whose affect on unemployment is determined by the extent to which they act as substitutes or complements of the existing labour supply	Migrants	0%
That type of long-run aggregate supply curve that appears as a horizontal line until pressure is placed on capacity after which the curve slopes upwards, becoming vertical when full employment is reached	Modern	0%
That theory of long-run aggregate supply that once pressure is placed on capacity, and shortages begin to appear, the price level will begin to increase until full employment is reached after which supply can rise no further, causing inflation	Modern	0%
The theory that inflation is caused by an independent rise in the money supply such as due to low interest rates	Monetary theory of inflation	0%
The affect of a change in aggregate demand on the aggregate supply curve	Movement along the aggregate supply curve	0%
A fall in total output	Negative growth	0%
Where the value of imports exceeds that of exports	Negative net exports	0%
The difference between incomes received from and paid to overseas residents	Net income	0%
Gross investment - depreciation	Net Investment	0%
The value of all the goods and services produced over a period of time in terms of actual prices paid at the time without adjustment for inflation	Nominal Gross Domestic Product	0%
The UK's independent and official national statistical institute	Office for National Statistics	0%
That an example of which is the interest that could have been earned from past profits by depositing the money in banks or lending it to other firms	Opportunity Cost	0%
The amount by which the actual output of an economy falls short of potential output	Output Gap	0%
The elasticity of short-run aggregate supply according to Keynesian theory	Perfectly elastic	0%
The elasticity of long-run aggregate supply according to Keynesian theory	Perfectly inelastic	0%
A rise in total output	Positive growth	0%
Where the value of exports exceeds that of imports	Positive net exports	0%
The speed at which the economy could grow if all factors of production were fully used	Potential growth	0%
That which is the principal factor in determining the affect of inflation on firms	Price elasticity of demand	0%
The price of goods and services within an economy	Price Level	0%
A category of the balance of payments referring to the interest, profits, and dividends, both received by, and paid to people abroad by those in the UK	Primary income	0%
That the increase of which causes an outward shift in the long-run aggregate supply curve as more output is produced with the same factors of production	Productivity	0%
Where a country erects trade barriers against other countries to protect domestic industries and counter what is perceived as unfair competition	Protectionism	0%
That measure which is principally used to remove the distortion of exchange rate variations and volatility in comparing countries	Purchasing Power Parity	0%
The way in which Gross Domestic Product in terms of each national currency is converted into a common currency via an artificial exchange rate that reflects the value of a basket of commonly consumed and representative goods and services	Purchasing Power Parity	0%
Nominal GDP×(price index in base year)/(price index in current year) or 100×(nominal GDP)/(price index)	Real Gross Domestic Product	0%
The value of all the goods and services produced over a period of time after the effects of inflation have been removed	Real Gross Domestic Product	0%
Nominal interest rate-rate of inflation=	Real interest rate	0%
The difference between the nominal interest rate and the rate of inflation	Real interest rate	0%
Where wages are above equilibrium resulting in excess supply, possibly causing employers to cut wage bills by shedding labour	Real wage inflexibility	0%
That government measure the increase of which causes an inward shift in the long-run aggregate supply curve due to the increased costs of compliance, though it also causes the products to become more consumer-friendly thus reducing litigation and compensation costs	Regulation	0%
The prices of a country's exported goods and services compared to other countries	Relative prices	0%
The quality of a country's exported goods and services compared to other countries	Relative Quality	0%
The reliability of an exporting firm in delivering goods and services on time	Reliability of Delivery Dates	0%
A measure of inflation seen as being more representative of the cost of living than the Consumer Price Index due to its giving a higher weighting to those items people consider necessities, including mortgage interest payment costs and taking the substitution effect into consideration	Retail Price Index	0%
That, the value of which will be eroded with inflation, assuming the interest rate paid is lower than the inflation rate	Savings	0%
A type of frictional unemployment consisting of those who do not accept the first job they are offered but instead search around for a more suitable one	Search unemployment	0%
A type of frictional unemployment consisting of those who are unemployed because of seasonal fluctuations in demand, supply, and/or in weather/climate conditions	Seasonal unemployment	0%
A category of the balance of payments referring to remittances between those in different countries, donations to foreign charities, overseas aid, and payments to the European Union	Secondary income	0%
A period of perhaps one or two years within an economic cycle in macroeconomic terms	Short run	0%
That period of time which begins at the point of a change in price that firms can charge and ends at the point of a change in costs that firms have to pay	Short Run	0%
That graph which a change in costs is the principal cause of a shift in its position	Short-run Aggregate Supply Curve	0%
A graph with a positive slope showing aggregate supply in the short-run in terms of Gross Domestic Product against the price level	Short-run aggregate supply curve	0%
Where a firm can produce more with the same factors of production	Spare capacity	0%
Prices that do not change immediately in response to changes in the market such as due to the result of a fixed contract	Sticky Prices	0%
When unemployment occurs as a result of a decline in particular industries because of long term changes in market conditions	Structural unemployment	0%
That government measure the reduction of which causes an outward shift in the short-run aggregate supply curve as it would have the effect of lowering costs	Taxation	0%
A type of structural unemployment whereby human employees lose their jobs because of the introduction of new technologies	Technological unemployment	0%
That the improvement of which causes an outward shift in the long-run aggregate supply curve as unit costs decrease and more output can be supplied at the same price level	Technology	0%
The sum of the price paid per unit of goods or services multiplied by the number of units purchased	Total Expenditure	0%
A country's Gross Domestic Product as a total figure in monetary terms	Total Gross Domestic Product	0%
A sub-division of the balance of payments which adds the trade in goods with the trade in services, of which the UK has recently had a trade deficit due to a larger goods deficit than services surplus	Total trade	0%
A sub-division of the balance of payments showing the balance between revenue earned from exports of physical goods and expenditure on the import of physical goods, of which the UK usually has a trade deficit	Trade in goods	0%
A sub-division of the balance of payments showing the balance between revenue earned from exports of services and expenditure on the import of services, of which the UK usually has a trade surplus	Trade in services	0%
The survey which calculates unemployment by taking a sample of around 40,000 households and 80,000 individuals living in private households, classifying them according to the International Labour Organisation, and then subtracting the unemployed from the total of economically active persons	UK Labour Force Survey	0%
Where people are working below their capacity (hours) or capability (qualifications)	Underemployment	0%
That, the principal social effect of which is a welfare loss, through people developing depression, dependency, health problems, or turning to crime, while town centres become less vibrant with more vacant premises and charity shops	Unemployment	0%
A situation where productive resources are not being used	Unemployment	0%
That distribution of total income that lowers the proportion spent on consumption as those with a larger share of total income can afford to save	Uneven Distribution	0%
Job positions that employers want to fill but for which they have been unable to find suitable employees	Unfilled vacancies	0%
The value of the total assets held by a household, firm, &c.	Wealth	0%
An index such as the Consumer Price Index which assigns a weight to each category of product (i.e. food, energy, &c.) according to the proportion of total expenditure spent on each one	Weighted Price Index	0%
That which is not counted in government spending as it would be counted twice due to acting as income for the recipients which they go on to spend on consumption	Welfare Benefits	0%

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