Economics: Topic 7, Year 2 Definitions

The monetary value of the total output of an economy over a specific time period.

Occurs when, over time, an economy expands its capacity to produce goods and services.

A measure of the value of all goods and services produced within an economy over a given time period.

The value of all goods and services produced within an economy plus net property income from abroad.

The income earned from overseas assets owned by UK businesses and individuals minus the income from UK assets owned by foreigners. This figure can be negative or positive.

The degree of comfort through the consumption of goods and services enjoyed by individuals, households or other groups in society.

Measures how a nation's total income is spread between that country's inhabitants.

Comprises activities that are not regulated or recorded by the government and can be illegal.

Describes the problems experienced by third parties due to an economic activity. These problems can be passed on as a result of the consumption or production of a product.

The price of one currency expressed in terms of another as determined by the demand for, and supply of, currencies.

Values currencies against one another based upon the relative costs of a common basket of goods and services.