| A | B |
|---|
| Economy | The collective name given to all the financial and non-financial activity which takes place in a country both government activity, and the activities of companies and individuals |
| Micro economics | Very small scale economic activity e.g. individual activity |
| Macro economics | Large scale economic activity - e.g. activities that relate to governments, interest rates, tax rates and public expenditure (money spent on education, NHS etc) |
| A state controlled economy | An economy of country where all the production and the means of production are owned by the state. Wages and prices are state controlled, and there are no taxes. |
| A completely free market economy | The state has no role at all in managing the economy |
| A mixed economy | Where a free market and government taxing and spending exist side by side. |
| Financial activity | Wages, spending, anything to do with money |
| Non financial activities | DIY, gardening |
