Limited Company

 

A limited company is a company that has shareholders but is operated by directors. As a result of having shareholders, different people own different shares of the company thus giving owners of the company limited responsibility/liability for it.

Chapter 34: Key Words

Cyclical Unemployment – Cyclical unemployment is when there is unemployment due to a lack of demand or a downturn in the whole economy

Economically Inactive – People who are without a job and aren’t actively seeking nor available for work

Employed – Someone who is with a job

Frictional Unemployment – When there is unemployment due to people being in the process of moving from one job to another (between jobs)

Regional Unemployment – When unemployment is concentrated in a particular region (of a country)

Seasonal Unemployment – When there is unemployment during certain periods in a year due to seasonal changes in production and consumer demand

Sectoral Unemployment – This is when unemployment occurs due to a decline in a particular sector or industry

Structural Unemployment – Structural unemployment is when there is a mismatch of skills in the economy due to a change in structure

Technological Unemployment – When work done by human capital before is replaced by technology and machines.

Unemployed – People who are without a job but are available and actively seeking work

Voluntary Unemployment – This is when unemployment occurs due to people who are willing and able for work chooses not to

Chapter 31: Key Words

GDP per Capita – GDP per Capita is the approximation of the total output of a country divided by the total population. It can be used to compare standards of living as typically, the higher the standard of living, the higher the GDP per Capita since it is the average output of the economy per person.

Total Output of Country/Population = GDP per Capita

Human Development Index (HDI) –

Chapter 32: Key Words

Inflation – a general and sustained increase in the price of goods and services in an economy over a given period of time.

Deflation – a general and sustained decrease/fall in the price of goods and services in an economy over a given period of time after inflation drops below 0%.

Disinflation – when there is a fall/slow down in inflation, prices may be increasing but at a slower rate.

Hyperinflation – Very high inflation that often leads to money being useless/worthless

CPI – Consumer Price Index

RPI – Retail Price Index

Aggregate demand – Total demand in an economy

Aggregate Demand = C (consumer) + I (investments) + G (gov.) + (X-M) (exports – imports) 

Aggregate supply – Total supply in an economy

Demand-pull inflation – When inflation occurs due to excessive demand in an economy in relation to its supply

Cost-push inflation – When inflation is caused by increasing business costs

Monetary Inflation – When inflation occurs due to a sustained increase in the money supply

Monetarist – an advocate of the theory that fluctuations in the economy are linked to changes in the money supply

Inflationary Pressure –

Imported Inflation – When inflation occurs due to a rise in import costs following a fall in the value of the exchange rates of the importing country’s currency