Civil Engineering Reference
In-Depth Information
full employment
A situation where job vacancies exceed the number of registered
unemployed. The concept recognises that even when the economy is doing well
there will be some people out of work searching for jobs that suit their skills.
game theory
The study of how decisions are made, particularly in the context in
which decision-makers have to take other people's responses into account. It is
used to analyse oligopolistic forms of competition.
golden rule
A fiscal objective that constrains a government only to borrow to
finance investment not to fund current spending.
government failure
The concept that government policy intervention may not
necessarily improve economic efficiency.
government intervention
Measures undertaken by the state to achieve goals not
guaranteed by the market system.
great depression
The worldwide economic downturn that started in the United
States in 1929 and led to the most severe depression in the world to date.
gross domestic fixed capital formation
A national income accounting category
representing expenditure on fixed assets (such as buildings, vehicles, plant
and machinery). It is more common to refer to this expenditure as investment.
Spending on maintenance and repairs is excluded from this measure.
gross domestic product (GDP)
The most common measurement of a nation's
wealth, based on income generated from resources within its own boundaries;
the monetary value of its output of goods and services.
gross national income (GNI)
A measurement of a country's wealth. It represents the
total output of goods and services produced by the country in a year, plus the
net value of overseas assets. In the UK, there is little difference between GDP and
GNI. In 2010, UK GDP was £1,458 billion and GNI was £1,479 billion.
harmonised index of consumer prices (HICP)
A standard measure of consumer price
inflation that allows comparison between European Union countries. The series
commenced in January 1996 and became the official target of government policy
in 2004. It is usually referred to as the consumer price index.
headline inflation rate
The change in the retail price index that is announced by the
UK government in a monthly press release. It contrasts with the official rate of
inflation, which is based on the consumer price index.
hedonic pricing method
A technique used to identify the price of an externality.
It provides an estimate of the implicit price of an environmental attribute by
comparing the value of two identical goods, one with the environmental element
and the other without.
horizontal equity
The concept that all people should be treated identically. The idea
that underpins equal opportunities policies.
human capital
Investment in education and training that enhances the productivity
of individuals.
ILO unemployment rate
A measure of unemployment produced by the International
Labour Organisation. It defines unemployment as people who are without work
yet actively seeking employment. Data is gathered through labour force surveys.
