Where government tax revenue exceeds public spending
What is Budget surplus
100
A level of poverty where only minimum level of food, clothing and shelter can be met
What is Absolute Poverty:
100
when a country can produce a good with lesser opportunity costs than the other
What is Comparative advantage
100
Is when a currency of a country has a set rate against the currency from another country and there will be no fluctuation
What is Fixed exchange rate
100
Manipulation of government spending and level of taxation to influence movement of AD and overall economic activities
What is Fiscal policy
200
Where government expenditure exceeds tax revenue
What is Budget deficit
200
Is when income is less than the average income of a nation by certain percentage
What is Relative poverty
200
An act by manufacturer in one country exporting a good to another country at a price below what it charges in home market or even below production costs
What is Dumping
200
Is when the exchange rate of a country against another is determined through the forces of demand and supply
What is Floating exchange rate
200
Policies to influence the movement of AS by increasing the productive capacity of an economy
What is Supply side policy
300
Tax burden that falls more heavily onto those people with low income such as sales tax and value added tax
What is Regressive taxation
300
Aid given by one country directly to another
What is Bilateral aid
300
An account that summarises the financial transaction between one country and the rest of the world
What is Balance of payment
300
Refers to investment of foreign assets into domestic structures, equipments or organizations
What is FDI (Foreign Direct Investment)
300
Manipulation of interest rates to influence the movement of AD and overall level of economic activities
What is Monetary policy
400
Total amount of money a government owes to private sectors and the purchasers of bonds
What is National debt
400
Aid is given to countries through an intermediary organization such as the World Bank, which pools donations from several countries’ government before distributing to recipients
What is Multilateral aid
400
Limit onto the amount of goods that can be brought into a country
What is Import quotas
400
Refers to the currency union of EU members who have adopted euro as their sole legal tender
What is EMU (Economics and Monetary Union)
400
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction
What is Subsidy
500
Tax rate that increases as the taxable base amount increases and as such is felt more by the rich
What is Progressive taxation
500
A measurement of income inequality ranging from 0 (absolute equality) to 1 (absolute inequality)
What is Gini coefficient
500
Refers to the average price of exports to the average price of imports and is a measurement of competitiveness
What is Terms of trade
500
Extremely volatile short term capital that moves on short notice to any countries that provide better return and is usually associated with investment onto stock market in another country
What is Hot money
500
policy used to increase the money supply by buying government securities or other securities from the market