Statistics for Economics: Topic 7, Year 1 Definitions

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Definition	Answer	% Correct
A model that shows how money flows within a simplified economy, with households and firms as key components.	Circular Flow of Income	100%
Income that is received but which is not spent.	Saving	100%
The total planned demand for an economy's goods and services at a given price level over a specific time period.	Aggregate Demand	75%
The amount of income received by households after taking into account taxes on income and benefits received.	Disposable Income	75%
The price of one currency expressed in terms of another.	Exchange Rate	75%
Expenditure by central and local governments on goods and services.	Government Spending	75%
The planned spending by firms that adds to an economy's capital stock.	Investment	75%
The monetery value of the total output of an economy over a specific time period.	National Income	75%
Spending by foreigners on exported goods and services minus expenditure by households, firms and government on imported products.	Net Exports	75%
A measure of national income that removes the effects of rising prices in order to show changes in the volume of production between time periods.	Real National Income	75%
The total quantity of output that producers in an economy are willing to supply at specific price levels over a specific time period.	Aggregate Supply	50%
Planned spending by households on goods and services.	Consumption	50%
Additions to the circular flow of income from outside it - these comprise of investment, government expenditure and exports.	Injections	50%
A process through which any change in a component of aggregate demand results in a magnified change in real GDP or national income.	Multiplier Effect	50%
Shows the relationship between the total level of demand in an economy and the general level of prices.	Aggregate Demand Curve	25%
Expresses the relationship between the cost of capital and the value of output produced anually by that capital.	Capital-Output Ratio	25%
A level of economic activity that occurs when aggregate demand and aggregate supply are equal.	Macroeconomic Equilibrium	25%
The difference between immigration and emigration.	Net Migration	25%
An economy's total income expressed in money terms, valued in current prices.	Nominal National Income	25%
The amount by which the worth of a good or service increases at each stage of its production.	Value Added	25%
Factors that lead to income not being passed on within the circular flow - these comprise of savings, taxation and imports.	Withdrawals	25%
States that the level of planned investment depends on the rate of change of national income.	Accelerator Theory of Investment	0%
The decline in value of an economy's physical assets used in production due to wear and tear or obsolescence.	Capital Consumption	0%
The value of all physical assets used in production in the economy that are still in use, such as machinery, property and vehicles.	Capital Stock	0%
Latin for 'everything else remaining constant'.	Ceretis Puribus	0%
Unexpected factors that affect aggregate demand negatively or positively, such as a significant reduction in income tax rates.	Demand-side Shocks	0%
Measures the ease with which factors of production move from one use to another.	Factor Mobility	0%
The scarce resources used in production.	Factors of Productivity	0%
The net rate of return that is expected from an investment.	Marginal Efficiency of Capital	0%
The proportion of any income that is not passed on within the circular flow.	Marginal Prospensity to Withdraw	0%
A long-term loan used to purchased porperty.	Mortgages	0%
The percentage of working age people within an economy who are either employed or are actively looking for work.	Participation Rate	0%
Unexpected factors that affect aggregate supply negatively or positively, such as a major fall in the price of oil.	Supply-side Shocks	0%