Titlebook: Work Out Economics GCSE; R. Young Textbook 1987Latest edition R. Young 1987 accounting.banking.Distribution.economic growth.economics.educ

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National Income,Figure 10.1 divides the economy into two sections or . made up of households and firms.

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Money and Banking, is something which people generally accept in exchange for a good or a service. Money performs four main functions:

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Government Income,The government needs money to pay for public expenditure (see section 14.1. Revenue can be raised through taxation, national insurance contributions, borrowing, charging for services or by selling off state-owned assets.

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Government Spending, is spending by central government, local government, and nationalised industries. For every pound of public spending in 1986:

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Inflation, refers to the continual increase in prices. The . or . of money refers to the amount of goods and services one pound can buy. Inflation means the value of money is falling because prices keep rising.

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International Trade, is the exchange of goods and services between countries. An . is the UK purchase of a good or service made overseas. An . is the sale of a UK-made good or service overseas.