4. Consumer spending
Consumer spending or consumer
demand or consumption is also
known as personal consumption
expenditure. It is the largest part
of aggregate demand or effective
demand at the macroeconomic
level. There are two variants of
consumption in the aggregate
demand model, including induced
consumption and autonomous
consumption.
5. Exchange Rate
Rate at which one currency may be
converted into another. The
exchange rate is used when simply
converting one currency to another
(such as for the purposes of travel to
another country), or for engaging in
speculation or trading in the foreign
exchange market. There are a wide
variety of factors which influence the
exchange rate, such as interest
rates, inflation, and the state of
politics and the economy in each
country.also called rate of exchange
or foreign exchange rate or currency
exchange rate.
6. Gross domestic product
Gross domestic product (GDP) is
the market value of all officially
recognized final goods and services
produced within a country in a
given period of time. GDP per
capita is often considered an
indicator of a country's standard of
living.
7. GNP
Gross national product (GNP) is
the market value of all the
products and services produced in
one year by labor and property
supplied by the residents of a
country. Unlike Gross Domestic
Product (GDP), which defines
production based on the
geographical location of
production, GNP allocates
production based on ownership.
8. Stock Market
A stock market or equity market
is the aggregation of buyers and
sellers (a loose network of
economic transactions, not a
physical facility or discrete entity)
of stocks (shares); these are
securities listed on a stock
exchange as well as those only
traded privately.
9. Interest Rate
An interest rate is the rate at
which interest is paid by a
borrower (debtor) for the use of
money that they borrow from a
lender (creditor). Specifically, the
interest rate (I/m) is a percent of
principal (P) paid a certain amount
of times (m) per period (usually
quoted per annum).
10. National Debt
Government debt (also known as
public debt and national debt) is
the debt owed by a central
government. (In the U.S. and other
federal states, "government debt"
may also refer to the debt of a
state or provincial government,
municipal or local government.) By
contrast, the annual "government
deficit" refers to the difference
between government receipts and
spending in a single year, that is,
the increase of debt over a
particular year.
11. Rate of Inflation
inflation is a persistent increase in
the general price level of goods and
services in an economy over a period
of time. When the general price level
rises, each unit of currency buys
fewer goods and services.
Consequently, inflation reflects a
reduction in the purchasing power
per unit of money – a loss of real
value in the medium of exchange and
unit of account within the economy.
A chief measure of price inflation is
the inflation rate, the annualized
percentage change in a general price
index (normally the consumer price
index) over time.
12. Unemployment
Unemployment (or joblessness)
occurs when people are without
work and actively seeking work.
The unemployment rate is a
measure of the prevalence of
unemployment and it is calculated
as a percentage by dividing the
number of unemployed individuals
by all individuals currently in the
labor force. During periods of
recession, an economy usually
experiences a relatively high
unemployment rate.
13. Balance of Trade
The commercial balance or net
exports (sometimes symbolized as
NX), is the difference between the
monetary value of exports and
imports of output in an economy over
a certain period, measured in the
currency of that economy. It is the
relationship between a nation's
imports and exports. A positive
balance is known as a trade surplus
if it consists of exporting more than
is imported; a negative balance is
referred to as a trade deficit
or, informally, a trade gap. The
balance of trade is sometimes
divided into a goods and a services
balance.
14. GDP per capita
Per capita is a Latin prepositional
phrase: per (preposition, taking
the accusative case, meaning
"by, by means of") and capita
(accusative plural of the noun
caput, "head"). The phrase thus
means "by heads" or "for each
head", i.e. per individual/person.
15. Etymology
Eco is a derivation of the Greek
oikos, meaning an extended family
unit that consists of the house,
members of the family, slaves,
farmland, and all property.
The suffix –nomy is derived from
the Greek nomos, meaning
management, law, or principle.
Thus oikonomos, the original form
of economics, meant the
management of the hearth and
home.
16. How It Works
Primary stage/degree of the
economy: Involves the extraction
and production of raw materials,
such as corn, coal, wood and iron.
Secondary stage/degree of the
economy: Involves the
transformation of raw or
intermediate materials into goods
e.g. manufacturing steel into cars,
or textiles into clothing.
Tertiary stage/degree of the
economy: Involves the provision of
services to consumers and
businesses, such as babysitting, cinema and banking.
Quaternary stage/degree of the
economy: Involves the research
and development needed to
produce products from natural
resources and their subsequent byproducts.
17. How it Works
The gross domestic product (GDP) analyzes the total production
of goods and services within a year. Although the GDP
calculations assist in the measurement of the status of the
economy, the GDP does not, however, determine every areas of
a nation's well being. GDP only shows the value of the goods
and services that an economy produces; however, it does not
determine the quality of life for a nation due to the fact that
some variables can not be measured by a GDP such as security,
good health, personal happiness and a clean environment.
In America, it is believed that supply and demand establishes
the prices of goods and services. The prices set decide what
products are produced. If people want and demand more of a
particular good or service than the economy produces, the
price of the good or service is increased. Companies begin to
produce more goods because they see that prices are rising.
When goods are not in great demand by consumers and less
competition is present among producers, prices of goods drop
and manufacturers, during this time, either go out of business
or begin to produce other goods.
20. Prehistory (Stone Age, Iron Age
Bronze Age)
Paleolithic 500,00010,000 BC
Mesolithic 10,000-5,000
Neolithic 5,000-3,300
Bronze 3,300-1,300
Iron Ages 1,300-700
21. Paleolithic
•
Socio-economic unit was the band (small
kin group)
•
Trading tools, foods, skins and other
commodities, and for the exchange of
mates.
•
Economic resources were constrained by
typical ecosystem factors: density and
replacement rates of edible flora and
fauna, competition from other consumers
(organisms) and climate
•
Humans both dispersed and adapted
(Developed their technologies and
behaviors) to increase productivity to a
greater variety of environments.
•
Population to between 1 and 15 million.
23. Neolithic
Specializations of
skill.
• Exchange and trade
became necessary.
• Money=cattle
(according to
R.Davies).
• Commodity money.
• Tradition Economy
• Top-down command
Economy
• Community
cooperation Economy.
•
24. Bronze Age
•
Bronze
•
export raw materials and the
finished products
•
agriculture, trade and
artisanship
•
Cultivation of
cereals, legumes, vines and
olives combined with the
development of marine trade
25. Iron Age
•
industrial activities
•
Trade using silver and gold
coins.
•
Iron becomes the working metal
instead of bronze.
•
Pottery and decoration items.
•
Palace economy.
32. Enlighment Era
•
Science progress made many new
products and better productivity
•
Political condotions enable economic
growth and trade.
•
Capitalism is born.
•
Roothschild Family is gaining power.
•
Book Industry
•
Mercantilism
36. Today´s economy is shaped by
the tecnological advances of
the past and key events. Our
economy shapes us on our
consumption patterns and our
daily life.
