Edexcel Economics 10. Macroeconomic Strategies and Policies

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Term

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

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

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

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

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

That which largely determines the size of the multiplier effect

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

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

That the most common examples of which are; shares, bonds, certificates of deposit, and securitisation

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

Description

Term

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

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

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

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

A situation in which there is stability in prices relative to the government's inflation target

Aid given while stipulating where it is spent or from which country (usually the donor if bilateral aid) products must be purchased

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

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

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

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