Year 10, Commerce; "Our Economy"
Our Economy Glossary:
Appreciation:
An upward movement of the Australia dollar (or any currency) against another currency.
Balance of trade:
The difference between the value of a nations imports and the value of its exports.
Business cycle:
The cyclical fluctuations in the level of economic activity that an economy goes through over time.
Comparison rate:
Loan interest rates calculated after adding fees and charges to the lender’s advertised rate.
Consumer Price Index:
(CPI) Australia’s main measure of inflation.
Default:
The inability to repay borrowed money.
Depreciation:
A downward movement of the Australia dollar (or any currency) against another currency.
Depression:
A severe contraction in the level of economic activity resulting in many business failures; high and sustained levels of unemployment and sometimes-falling prices.
Foreign debt:
The amount of money a country has borrowed from overseas sources.
Foreign exchange (forex or fx) market:
This market determines the price of one currency, relative to another.
Foreign exchange rate:
The ratio of one currency to another.
Investment:
The purchase of new plant and equipment.
Inflation:
A general rise in prices, causing money to lose its value.
Interest rate:
The annual cost of borrowing credit or the annual return on invested savings; the price of money.
Macroeconomics:
The study of the economy as a whole.
Mixed economy:
An economic system in which individuals and businesses make their own decisions but with a degree of government involved.
Purchasing power:
The actual quantity of goods and services that may be bought with a given amount of money, after allowing the effects of inflation.
Real income:
What an income will actually purchase in terms of the quantities of goods and services, after allowing the effects of inflation.
Recession:
A relatively mild contraction in the level of economic activity resulting in
Appreciation:
An upward movement of the Australia dollar (or any currency) against another currency.
Balance of trade:
The difference between the value of a nations imports and the value of its exports.
Business cycle:
The cyclical fluctuations in the level of economic activity that an economy goes through over time.
Comparison rate:
Loan interest rates calculated after adding fees and charges to the lender’s advertised rate.
Consumer Price Index:
(CPI) Australia’s main measure of inflation.
Default:
The inability to repay borrowed money.
Depreciation:
A downward movement of the Australia dollar (or any currency) against another currency.
Depression:
A severe contraction in the level of economic activity resulting in many business failures; high and sustained levels of unemployment and sometimes-falling prices.
Foreign debt:
The amount of money a country has borrowed from overseas sources.
Foreign exchange (forex or fx) market:
This market determines the price of one currency, relative to another.
Foreign exchange rate:
The ratio of one currency to another.
Investment:
The purchase of new plant and equipment.
Inflation:
A general rise in prices, causing money to lose its value.
Interest rate:
The annual cost of borrowing credit or the annual return on invested savings; the price of money.
Macroeconomics:
The study of the economy as a whole.
Mixed economy:
An economic system in which individuals and businesses make their own decisions but with a degree of government involved.
Purchasing power:
The actual quantity of goods and services that may be bought with a given amount of money, after allowing the effects of inflation.
Real income:
What an income will actually purchase in terms of the quantities of goods and services, after allowing the effects of inflation.
Recession:
A relatively mild contraction in the level of economic activity resulting in