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Neuroscience 6th Edition Test Bank by Purves | 100% Correct Answers | Chapter 1 - Chapter 34 
 
Neuroscience 6th Edition Test Bank by Purves | 100% Correct Answers | Chapter 1 - Chapter 34 
 
Neuroscience 6th Edition Test Bank by Purves | 100% Correct Answers | Chapter 1 - Chapter 34
Globalisation: 
The process by which the world is becoming a single economy 
 
 
 
Sustainable Development: 
Development that meets the needs of current generations without compromising the needs of future generations 
 
 
 
Transfer Pricing: 
An account technique used by TNC's for reducing taxes on profits. By buying internally to ensure losses in high tax countries and profits declared in low tax regions. 
 
 
 
Capital Markets: 
Financial Markets which provide long-term borrowing and lending...
Globalisation 
Refers to the increasing integration and interdependence of the World's national economies into a single international market. It involves the free trade of goods and services, the free movement of capital and labour and the free interchange of technology and intellectual capital 
 
 
 
Developed economy 
An economy that that is economically developed and its population has a high GDP per capita e.g USA, Australia 
 
 
 
Developing economy 
An economy that that is less economical...
GDP 
Gross domestic product measures the value of goods and services produced in an economy, it also measures national income/national expenditure 
 
 
 
Nominal GDP 
Measures the monetary value of GDP (this may include the effects of inflation) 
 
 
 
Real GDP 
Measures GDP adjusted for the effects of inflation, it measures the actual purchasing power of consumers in an economy 
 
 
 
GDP per capita 
Is the level of GDP divided by population 
 
 
 
The volume of goods and services 
Is the quant...
Economic Growth 
This is an increase in real or potential GDP. This will lead to higher living standards and high levels of employment. 
 
 
 
GDP 
Gross Domestic Product 
 
 
 
Gross Domestic Product 
This is the value of all the goods and services produced in an economy in a year. 
 
 
 
Real Gross Domestic Product 
This is measured at constant prices adjusted for inflation. 
 
 
 
Nominal Gross Domestic Product 
This is measures at current prices including inflation. 
 
 
 
Total Gross Domest...
Gross Domestic Product (GDP) [alternative definition] 
The total value of all finished goods and services produced within an economy's borders in a given period of time 
 
 
 
Standards of Living (SoL) 
The quality of life enjoyed by people. This comprises material aspects (i.e. how much people are getting of the things they want and need), and non-material aspects (i.e. how healthy, educated, and happy they are) 
 
 
 
Short-run economic growth 
The change in the actual value of GDP measured i...
Actual economic growth 
The rate growth of GDP in a period 
 
 
 
Aggregate demand 
The total amount of spending on goods and services produced in an economy during a period of time 
 
 
 
Aggregate demand curve 
The relationship between the AD and the overall price level; it shoes planned expenditure at any given possible overall price level 
 
 
 
Automatic stabilisers 
Effects by which government expenditure adjusts to offset the effects of recession and boom without the need for active inter...
Balance of Payments (BoP) 
A record of all of the transactions between one economy (country) and all other economies (countries) over a given period of time. It is an account of all of the money flows into and out of an economy . 
 
 
 
The two halves of Balance of Payments 
'Current Account' and 'Capital and Financial Accounts' 
 
 
 
Current account 
The part of the BoP where payments relating to 
1) Trade in Goods 
2) Trade in Services 
3) Net Income, and... 
4) Current Transfers are reco...
Price Level 
The average of the prices of all goods and services within the economy. 
 
 
 
Other names for Price Level 
'General Price Level' and 'Average Price Level' 
 
 
 
Inflation 
A sustained INCREASE in the price level. This means that prices for a range of goods and services are RISING, which means that the VALUE OF MONEY is FALLING in relation to the goods and services it is used to buy. 
 
 
 
Deflation 
A sustained DECREASE in the price level. This means that prices for a range o...
What are the four assumptions of micro economics? 
Rational Consumers, perfectly competitive market, average consumer, ceteris paribus 
 
 
What is a positive statement? 
a statement that can be tested and validated 
 
 
What is a normative statement? 
an opinion, a value judgement 
 
 
What is the economic problem? 
Resources are scarce, however wants are unlimited. There are finite resources so goods/services need to be allocated efficiently. 
 
 
What is opportunity cost? 
Cost of the next be...