Glossaries of economic terms in principles of macroeconomics. Following are explanations of five essential terms that economists use all the time. Important economic terms and concepts are explained and their definitions are provided in this post. The countrys actual worth is determined by its ability to produce domestically that it makes use of the resources available within it. Macroeconomics definition of macroeconomics by merriamwebster. Macroeconomics is the branch of economics that is concerned with the major, general. Absolute advantage this is the simplest yardstick of economic performance. An opportunity cost is what was sacrificed to do or acquire something. A glossary of macroeconomic terms the digital economist. Because historical episodes allow diverse interpretations, many conclusions of macroeconomics are not coercive. Introduction to macroeconomics lecture notes robert m.
It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation. The contributions are taxdeferred until retirement withdraws occur. Economic policy macroeconomics terms with definitions by phds from stanford, harvard, berkeley. Autonomous expenditure expenditure that takes place independent of national income. If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers.
Scarcity a the property of distributing output fairly among societys members 2. Macroeconomics definition of macroeconomics by merriam. Macroeconomics definition, the branch of economics dealing with the broad and general aspects of an economy, as the relationship between the income and investments of a country as a whole. Microeconomics definition, the branch of economics dealing with particular aspects of an economy, as the pricecost relationship of a firm. Budget set different bundles of goods and services that are attainable to the consumer at given market prices and the consumers fixed level of income. Essential as economics glossary sukromne gymnazium. It aims at studying those aspects and phenomena which are important to the national economy and world economy at large. This standard is necessary in order to maintain a stable economy. Glossary of key economic policy macroeconomics terms. An example of how to find the terms of trade based on two agents comparative advantage. Pdf on jan 1, 2001, coskun can aktan and others published glossary of economics terms find, read and cite all the research you need on. The study of how households and firms make decisions and how they interact in markets 5. As macro key term glossary 2015 edition economics tutor2u. The relationship between the quantity of output demanded and the aggregate price.
Terms defined are in bold and crossreferences to definitions elsewhere. The nature of this relationship will differ between the long run and the short run allocative efficiency. Value of final goods and services an economy produces in one year a final good or service. Macroeconomics nguyen thi hien email protected 1 chapter 1. Macroeconomics meaning in the cambridge english dictionary.
If youre behind a web filter, please make sure that the domains. This glossary provides in one place a list of key terms with simple explanations of the ways in which they are technically used. Flows flow stock a stock is a quantity measured at a point in time. Verify your understanding of different economicrelated terms using this quizworksheet combo. Macroeconomics financial definition of macroeconomics. Monetary and fiscal policy and its effects, t axes, interest rates economic trends, economic growth, tr ade and globalization. Whether it is an explanation of how firms work, or people vote, or customers buy, or governments subsidise, economists have examined evidence and produced theories which can be checked against practice. The theory depends on several strong assumptions including an absence of international capital mobility, and a supplyconstrained economy. These concepts are very helpful for candidates preparing for upsc civil services, ssc, ibps, appsc, tspsc, group 1, group 2, group 3, ssc, ibps, rrb, rbi and other competitive exams. The following points highlight the top four definitions of economics. Competition occurs between different companies trying to produce and sell the same good or service.
Macroeconomics definition and meaning collins english. A glossary of microeconomics terms abundance a physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system. Economics is the basis of our daily lives, even if we do not always realise it. Learn and know the meaning of these economy terms by their definitions here at the economic times. In simple terms, aggregate supply represents the ability of an economy to produce goods and services either in the shortterm or in the longterm. An agreedupon value for a transaction in a countrys medium of exchange, such as the dollar or peso.
Macroeconomics definition of macroeconomics by the free. Macroeconomics is a topdown approach and is in a way, a helicopter view of the economy as a whole. When calculated for the economy as a whole, all these measures are equal. It is simply laid out, with hundreds of entries, browsable alphabetically, from absolute advantage to zero elasticity. Understanding the key definitions in microeconomics dummies. A standard of value allows all merchants and economic entities to set uniform prices for goods and services. Microeconomics terms and definitions learn with flashcards, games, and more for free. Macroeconomics looks at economywide phenomena and the economy as a whole. Efficiency c limited resources anh unlimited wants 4. The free market in a free market economy, prices of goods and services, wages, interest rates, and foreign exchange values are determined by supply and demand. In macroeconomics, a variety of economywide phenomena is thoroughly examined such as, inflation. That is, macroeconomics studies gross domestic product, unemployment, inflation, and similar matters. Gdp in terms of goods gdp in constant dollars gdp adjusted for in ation.
Definition of terms of trade and example of finding the. Macroeconomics is concerned primarily with the forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another. Some of these terms include macroeconomics and gdp. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
The definitions are short and are not linked to other material. In 1936, john maynard keynes published the general theory. It tells us the quantity of real gdp that will be supplied at various price levels. Study of the behavior of the whole aggregate economies or economic systems instead of the behavior of individuals, individual firms, or markets which is the domain of microeconomics. Macroeconomics the branch of economics that is concerned with the overall ups and downs in the economy. Financial assets saver and investor are different people, need. A glossary of macroeconomics terms digital economist. This glossary of economic terms forms part of the support site for joseph stiglitzs principles of macroeconomics 4th ed.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Economics b a situation in which the market fails to allocate resources efficiently 3. Some of he topics that are covered in macroeconomics include. Apr 03, 2020 unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. There would not be a need to sacrifice one thing for another if there was not scarcity in our world. The great depression and its resulting high unemployment rate greatly influenced the development of macroeconomics. To get a true feel for microeconomics, three key terms must be defined and understood. Macroeconomics analyzes all aggregate indicators and the microeconomic factors that influence the.
The english word economics is derived from the ancient greek word oikonomiameaning the management of a family. The accelerator a parameter that defines the relationship between national income and required capital stock. Macroeconomics involves the study of aggregate factors such as employment, inflation, and gross domestic product, and evaluating how they influence the economy as a whole. Macroeconomics is a branch of the economics field that studies how the aggregate economy behaves. For instance, it is hard to know whether a manager who has expanded a. Apr 29, 2020 this glossary of economic terms forms part of the support site for joseph stiglitzs principles of macroeconomics 4th ed. Unemployment is often used as a measure of the health of the economy. If youre seeing this message, it means were having trouble loading external resources on our website. Glossary of business terms adjective adj headwords for adjectives followed by information in square brackets only before a noun and not before a noun show any restrictions on where they can be used. Financial intermediary bank between saver and investor. The only catch is that the interest rate needs to be quoted in terms of the. To mention a few of them are the countrys gdp gross domestic product growth. Noun n the codes c and u show whether a noun, or a particular sense of a noun, is countable an agenda, two agendas or uncountable.
A good definition of economics, which stresses the difference between economics and other social sciences, is the following. Microeconomics comes complete with its own set of vocabulary, which can sometimes be confusing. Where are the familiar words we ordinar ily associate with economics. Macroeconomics the study or analysis of the working of the economy as a. An aggregate is a multitude of economic subjects that share some common features. It does not look at the function of individual companies and only tangentially studies individual industries. The difference between macroeconomics and microeconomics macroeconomics includes those concepts that deal with the entire economy or large components of the economy or the world. The fundametals of macroeconomics terms and definitions choose a definition for each key term 1. Macroeconomics definition is a study of economics in terms of whole systems especially with reference to general levels of output and income and to the interrelations among sectors of the economy. This glossary contains nontechnical descriptions of all the terms in economics for everyone highlighted in small capitals. A type of retirement plan which is sponsored by an employer and in which the employer may match a portion of the employees contributions. Study of the behavior of the whole aggregate economies or economic systems instead of the behavior of individuals, individual firms.
The nations unemployment rate, inflation rates, interest rates, federal government budgets and government fiscal policies, economic growth, the federal reserve system. Like all practices, economics has its own terminology. Microeconomics terms and definitions flashcards quizlet. Automatic stabilisers under certain spending and tax rules, expenditures that. Ap macroeconomics studyguide basic terms for economics.
Macroeconomics analysis of a countrys economy as a whole. There is no interference from a government in the form of price controls, labor laws, or other regulations affecting the market price of the product. The economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them. Download the as macro key term glossary pdf subscribe to email updates from tutor2u economics join s of fellow economics teachers and students all getting the tutor2u economics teams latest resources and support delivered fresh in their inbox every morning. Ap macroeconomics studyguide basic terms for economics economics. No financial assets simple economy, saver and investor are the same person. Macroeconomicsglossary wikibooks, open books for an. It may be impossible to define the agents job in a way that can be monitored effectively. It has been compiled as an annotated text, building on material from a variety of sources and adapting it to the field of economics and finance of health services. Marginal decision a decision made at the margin of an activity to do a bit more or a bit less of that activity. This glossary of economics is a list of definitions of terms and concepts used in economics, its subdisciplines, and related fields. Macroeconomicsglossary wikibooks, open books for an open world. Jul 23, 2019 macroeconomics is a branch of the economics field that studies how the aggregate economy behaves. When asked to define a competitive equilibrium for a specific economy, your task is.
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