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Balance of Payments
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Export reciepts minus import payments
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terms list
Balance of Payments
Export reciepts minus import payments
Boom
A time when economic activity is high, and incomes and profits are increasing
Capital Resources
Man made good used to produce other goods
Circular Flow Model
A model that shows the relationship between sectors of the economy
Collective Goods
Goods provided by the government through the taxation system: includes both Mixed goods and Public goods
Commodity
A good or service
Consumer
A user of goods and services
Consumption
Household spending on goods and services (consumer spending)
Demerit Good
A good or service considered bad for us
Depression
A time of negative growth, incomes and profits may be falling
Direct Tax
Tax paid directly to the Inland Revenue Department (e.g. P.A.Y.E.)
Disposable Income
Income after tax
Entrepreneur
An organiser of resources
Export Receipts
Income/money coming into New Zealand from the overseas sector in return for our exports
Exports
Goods and services made in New Zealand and sold to the overseas sector
Factor Reward
Payment made to households by firms for providing resources
Factors of Production
The inputs into the production process - Land, Human resources and capital
Financial Sector
Acts as intermediary between households who save money and firms who borrow money for investment
Firm
A business in the private sector that produces goods and services
Foreign Exchange Market
Where currencies from a range of countries are bought and sold
Government Sector
Provides services such as police, hospitals, schools, etc
Household
A group of people living under one roof
Human Resources
Labour and Entrepreneurship
Import Payments
Money leaving New Zealand to the Overseas Sector in return for imports.
Imports
Goods and services brought by New Zealand from the overseas sector
Income
The flow that shows the payments made by firms to households for using resources (e.g. wages and salaries)
Income Tax
A direct tax on earned income
Independence
Self sufficient - not relying on anyone
Indirect Tax
Tax paid indirectly to a third party (e.g. frims collect tax (G.S.T.) from the consumer and passes it onto the Government)
Injection
Money that is put into the circular flow
Interdependence
A mutual reliance; when two sectors/firms rely on each other
Interest
The cost of borrowing. Payments made by firms to the financial sector in return for the money they have borrowed for investment. The reward for saving
Investment
The buying of capital by firms
Land
All natural resources
Market
A place or situation where an exchange takes place
Merit Good
A good or service considered good for us
Money Flow
The flow of money within the economy
Money Market
Connects savers (households), financial institutions and firms
Mixed Goods
Goods sold by both the private sector for profit and provided by the government (e.g. private schools and public schools)
Overseas Sector
New Zealand's trading partners throughout the rest of the world
P.A.Y.E.
Pay As You Earn (the most common type of income tax)
Producer
Someone who provides or creates goods and services
Progressive Tax
Tax that increases as income increases (e.g. in New Zealand the rates are 19.5%, 33% and 39%
Public Sector
The Government Sector
Quota
A restriction on the ammount of imports allowed into a country
Real Flow
These are the flows of the factors of production - Land, human resources and capital
Recession
A time when economic activityis low, and income and profits are low
Resource Market
Where resources are bought and sold
Sector
A part of the economy
Subsidy
A payment made by the Government to firms to help reduce the cost of production, increase output and reduce cost to consumers
Tariff
A tax on imports
Transfer Payment
A payment made by the Government to households
Withdrawl
Money that is taken out of the circular flow
more from user
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