Economic issues - the business cycle, unemployment, taxation – Vocabulary and Phrases
aggregate demand – the total amount spent in a country by consumers, companies and the government
Without that client, there was simply not enough aggregated demand in the city to justify the cost of investing in the equipment.
aggregate supply – the amount of output that business produces and sells, given current prices, costs and production capacity
The aggregated supply of commodities is generated from information on individual outlets (turnover, square footage).
gross national product (GNP) – the total amount of money earned by a country both through its exports and domestic markets. It includes the production of goods and money earned from services, e.g.. The financial and tourism sectors.
The agricultural sector contributes 2% of the Gross National Product (GNP) of Great Britain.
gross domestic product (GDP) – the value of goods and services produced over time, including the income of foreign corporations and foreign residents working in the home country, but excluding the income of the home country's residents and corporations overseas
The U.K. has significant coal, natural gas and oil reserves; primary energy production accounts for 10 percent of GDP, one of the highest shares of any industrial nation.
output – the total value of the goods produced or services performed (by a person, a company, an industry, or a whole country)
In India, Skoda plans to raise last year's output of 10000 units to between 15000 and 20000 units this year.
market economy – (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system.
A true free market economy is an economy in which all resources are owned by individuals, and in which decisions about the allocation of those resources are made by individuals without government intervention
planned economy – (also known as a command economy or centrally planned economy) is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income
Beginning in the 1980s and 1990s, many governments presiding over planned economies began deregulating and moving toward market-based economies
frictional unemployment – people being temporarily between jobs, searching for new ones;
But some frictional unemployment is beneficial, since it allows workers to get the jobs that fit their wants and skills best.
seasonal unemployment – unemployment, where specific industries or occupations are characterised by seasonal work which may lead to unemployment. Examples include workers employed during farm harvest times or those working Winter jobs
We have high seasonal unemployment because everything is agriculture-related.
voluntary unemployment – people who are not looking for any job
The remedy against voluntary unemployment is well known. It consists mainly in reducing the period over which unemployment pay is available.
structural unemployment – a mismatch between the workers looking for jobs and the vacancies available. Even though the number of vacancies may be equal to the number of the unemployed, the unemployed workers lack the skills needed for the jobs
The closing down of mines and the resulting structural unemployment have a negative effect throughout the region.
hidden unemployment – the unemployment of potential workers that is not reflected in official unemployment statistics, due to the way the statistics are collected.
The official estimates, which detect some but not all hidden unemployment, show Russian unemployment at 9 per cent nationwide in 1995.
to levy taxes – to impose (a tax):
The government is planning to levy a higher excise duty on cigarettes.
to be liable to taxes – to be subject to taxes
If a product is liable to VAT, that is indicated alongside the price in product listings.
to avoid taxes – to reduce tax liabilities to a minimum by legal means
Russians trying to avoid taxes, seeking to hide illegal funds or simply hoping to ride out the economic crisis have been sending their money elsewhere.
to evade taxes – to make false tax declarations (illegal)
He was fined $64,123, which represents 60% of the federal taxes he evaded.
to lower taxes – to decrease taxes
The government decided to lower taxes to attract new residents and investment to the Island
to raise taxes – to increase taxes
This commission has decided to raise taxes only on the rich.
to deduct (taxes) – to take away, as from a sum or amount
Once you deduct your expenses, there is nothing left.
tax return – reports containing information used to calculate income tax or other taxes.
He was accused of repeatedly failing to file tax returns for a corporation that owns one of his Manhattan buildings.
excise duty – taxes raised on certain products, particularly tobacco and alcoholic drinks
The Chancellor has announced a rise in excise duty on beer and wine in line with inflation
VAT – value-added tax, a sales tax collected at each stage of production, excluding the already-taxed costs from previous stages
France and Britain want to propose cuts in VAT on environmentally-friendly products across the EU.
tax haven – a financial centre offering low rates to non-residents, in which multinational companies are encouraged to set up offices
Belize tax-haven is recognized as being one of the best offshore countries for offshore bank accounts.
tax loophole – A way of escaping a difficulty, especially an omission or ambiguity in the wording of a contract or law
The new low-alcohol beverage costs half the price of beer thanks to a tax loophole.
tax deductible – describes business expenses, donations to charity, etc. that can be subtracted from taxable income
Donating to the Red Cross or Red Crescent is tax-deductible.
rebate – part of a payment that is given back (e.g. from taxes)
AT&T paid negative taxes in two of those years, during which it reported over $5 billion in profits-and got a taxrebate of nearly $1.4 billion.
primary sector – the extraction of raw materials from the earth, and agriculture
Almost half of China’s labour force still works in the primary sector.
secondary sector – manufacturing industry, in which raw materials are processed or transformed into finished products
Food processing represents about 25% of the secondary sector's GDP.
tertiary sector – services, including commerce, marketing, banking, communications, transport, health care, education, etc.
In the 1990s, around 90% of all new jobs in Latin America and the Caribbean arose in the tertiary sector.
economic/business cycle – changes of economic activity about its long term growth trend. The cycle involves changes over time between periods of relatively rapid growth of output, and periods of relative stagnation or decline.
The complete normal business cycle usually lasts approximately 42 - 54 months, but this typical length can be altered by monetary policy.
to boom – to progress, grow, or flourish vigorously, as a business or a city:
Her business is booming since she enlarged the store.
a bust economy – a sudden decline in the economic conditions of a country, marked by an extreme drop in stock-market prices, business activity, and employment; depression.
Discoveries of additional gold fields and iron deposits led to a boom and bust economy for the rest of the 19th century.
downturn – the end of a boom, when an economy starts to contract
A downturn in U.S. house price growth has not hit other property markets around the world.
recovery – an increase in economic activity after a recession, or a rise in share prices
Historically, the US economy recovered most of the time or every time after a war.
trough – the worst possible economic situation
By now, a total of 325 000 new jobs have been created since the economic trough in 2003.
peak – the highest point on the business cycle, to reach the highest point
Since the last economic peak, the budget has swung from a substantial surplus to a deficit equal to about 2 percent of GDP in fiscal year 2006.
government spending – how much a government pays for its public services such as education, health and transport, etc.
In recent years there have been some cuts in Government spending on education and health care.
government debt – the overall amount the government owes shown as a percentage of the GDP as a whole
During the eighties gross government debt increased to over 70% of GDP and started. then to decline.
red tape – excessive regulation or rigid conformity to formal rules that is considered bureaucratic and slows down or prevents action or decision-making. It is usually applied to government, but can also be applied to other organizations like corporations.
The average small business person spends 20 hours a week dealing with red tape.
bureaucracy – the political rule of offices.
In the 2004 elections, ODS criticised bureaucracy and regulation at the EU level.