limited availability of economic resources relative to society's unlimited demand for goods and services.
What is scarcity
100
This is the total money value of all final goods and services produced in an economy in one year.
What is GDP?
100
Exists where a country specializes in the production of goods and services where they have a comparative advantage in production. They will then trade to get the goods and services in which they do not specialize.
What is specialization?
100
Grants or other forms of development assistance that has some "strings attached", meaning that there are conditions.
What is tied aid
100
This is the selling of a good in another country at a price below its unit cost of production.
What is dumping?
200
Goods which have no opportunity costs.
What are free goods?
200
This is the number of unemployment workers expressed as a percentage of the total workforce.
What is the unemployment rates?
200
These are the things that a country has available to produce goods and services.
What are factor endowments?
200
Improvements in the quality of life that meets the needs of the present without compromising the ability of future generations to meet their own needs.
What is sustainable development?
200
This exists where a country is able to produce a good at a lower opportunity cost of resources than another country.
What is comparative advantage?
300
the next best alternative foregone when an economic decision is made.
What are opportunity costs?
300
This is the ratio of a change in the level of national income to an initial change in one or more of the injections into the circular flow of income (that is investment, government spending, or export revenue).
What is the multiplier?
300
Is a decrease in the value of a currency in a fixed exchange rate system.
What is revaluation.
300
These exist where the average price of exports falls relative to the average price of imports.
What are deteriorating terms of trade?
300
An index that measures the ratio of the area between a Lorenz curve and the line of absolute equality to the total area under the line of equality. The higher the figure, the more unequal the distribution.
What is Gini Coefficient?
400
Exists when production is achieved at the lowest cost per unit of output, this is achieved at the point where average total cost is at its lowest value. MC = AC.
What is productive efficiency?
400
The situation where the governmnet spends more (government expenditure) than it receives in revenue (mainly taxation), and needs to borrow money, forcing up interest rates and "crowding out" private investment and private consumption.
What is crowding out?
400
An agreement made between countries, where the countries agree to trade freely among themselves, and they also agree to adopt common external barriers against any country attempting to import into the group.
What is a customs union?
400
This is an organization whose main aims are to provide aid and advice to developing countries, as well as reducing poverty levels and encouraging and safeguarding international investment.
What is The World Bank?
400
Are the amount of revenue needed to cover the total costs of production, including the opportunity costs.
What are normal profits?
500
These are goods or services that would not be provided at all by the market. They have the characteristics of non-rivalry and non-diminishability, for example, food barriers.
What are public goods?
500
Shows the (neo-classical or monetarist) view that there is no trade-off between inflation and unemployment in the long run and that there exists a natural rate of unemployment that can only be affected by supply-side policies.
What is the long run Philip's Curve?
500
This is a scheme where products from producers in developing countries can be certified to display the registered trademark, thus encouraging consumers to buy them because they know that the producers of the products have been paid a reasonable price, and the products have been produced under approved conditions.
What is fair trade?
500
States that as extra units of a variable are applied to a fixed factor, the output from each additional unit of the variable factor will eventually diminish.