Statistics for Economics: Topic 9, Year 2 Definitions

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Definition	Answer	% Correct
The rate of decrease of the general price level and the corresponding rise in the value of money.	Deflation	100%
The rate of increase of the general price level and the corresponding fall in the value of money.	Inflation	100%
Exists when people are seeking work but are unable to find it.	Unemployment	100%
A basic product for which there is global demand and which is often used in the manufacturing process.	A Commodity	67%
An organisation formed with the objective of enhancing and protecting the working conditions and economic positions of its members.	A Trade Union	67%
Occurs when prices are rising, but at a decreasing rate.	Disinflation	67%
Occurs when over time an economy expands its capacity to produce goods and services.	Economic Growth	67%
Refers to an increase in an economy's productive potential and is what is normally meant by the term 'economic growth'.	Long-run Economic Growth	67%
Unemployment that exhibits regular and predictable fluctuations throughout the year.	Seasonal Unemployment	67%
Unemployment arising from a fall in aggregate demand.	Cyclical Unemployment	33%
Unexpected factors that affect aggregate demand negatively or positively.	Demand-side Shocks	33%
Exists when workers are in the process of moving to a new job.	Frictional Unemployment	33%
Occurs when workers leave the labour market against their wishes.	Involuntary Unemployment	33%
Measures the ease with which labour moves from one productive use to another.	Labour Mobility	33%
A school of thought that supports the close control of the money supply based on the belief that increases in this supply result in inflation.	Monetarism	33%
Stands for non-accelerating inflation rate of unemployment and is the rate of unemployment that is associated with stable rates of inflation.	NAIRU	33%
Describes the problems experienced by third parties as a consequence of an economic activity. These problems can be passed on as a result of the consumption or production of a product.	Negative Externalities	33%
An increase in production of goods and services because the available resources within an economy are used more fully.	Short-run Economic Growth	33%
A high-risk financial activity in a pursuit of a potentially substantial gain.	Speculation	33%
The loss of jobs resulting from the long-term decline of specific industries.	Structural Unemployment	33%
Intended to increase aggregate supply by improving the effectiveness of markets.	Supply-side Policies	33%
Unexpected factors that affect aggregate supply negatively or positively.	Supply-side Shocks	33%
Occurs when an economy's actual level of GDP shows a regular pattern of variation compared with it's long-term trend.	The Economic Cycle	33%
The level of unemployment that exists when the labour market is in equilibrium.	The Natural Rate of Unemployment	33%
Occurs when workers take a decision not to enter the labour market at the current wage rate.	Voluntary Unemployment	33%
Theories that state that firms and households use past information as the best indicator of future events.	Adaptive Expectations	0%
An equation which sets out the relationship between money, the frequency with which it is spent and the value of transactions in an economy.	Fisher's Equation of Exchange	0%
Occurs when those taking financial decisions operate without sufficient thought and act in the belief that a large group of people are unlikely to be wrong.	Herding Instinct	0%
Describes a situation in which periods of high unemployment tend to increase the rate of unemployment, below which inflation begins to accelerate, commonly referred to as NAIRU.	Hysteresis	0%
Takes place when individuals and firms do not distinguish between nominal and real values of money when taking decisions.	Money Illusion	0%
Based on the assumption that decision makers use all available information - past, current and forecasted - before reaching judgements.	Rational Expectations Theories	0%
Exists when the real wages for workers in an economy are too high, leaving firms unwilling to employ everyone who is looking for a job.	Real Wage Unemployment	0%
States that the level of planned investment depends upon the rate of change of national income.	The Accelerator Theory of Investment	0%
Illustrates the relationship between the rates of inflation and unemployment that may exist within an economy.	The Phillips Curve	0%
States that increases in the money supply within an economy will result in increases in the general level of prices.	The Quantity Theory of Money	0%
The percentage of economically active people within a country who are unemployed.	The Rate of Unemployment	0%
The percentage difference in average gross hourly earnings between union members and non-members.	The Trade Union Wage Premium	0%