Economics Intro
Resources are limited but people's wants are unlimited.
What is the basic economic problem?
Buying and selling goods and services between countries.
What is trade?
Measures development using health, education and income.
What is HDI?
Aid given directly from one country to another.
What is bilateral aid?
A tax placed on imported goods.
What is a tariff?
The next best alternative you give up when making a choice.
What is opportunity cost?
Producing the goods or services you are best at making.
What is specialisation?
Measures the average economic output per person.
What is GDP per capita?
Aid given through organisations like the United Nations or World Bank.
What is multilateral aid?
A limit on how many goods can be imported.
What is a quota?
Demand decreases
What happens to demand when price increases?
Goods sold to another country.
What are exports?
Differences in wealth and quality of life between people or countries.
What is inequality?
Aid that helps countries become more self-sufficient.
What is capacity building?
Policies to protect local businesses from foreign competition.
What is protectionism?
Supply increases
Goods bought from another country.
What are imports?
A line that divides the world into generally richer and poorer regions.
What is the Brandt Line?
When a country becomes too reliant on foreign aid.
What is aid dependency?
Consumers usually pay more for imported goods.
What is one effect of a tariff?
This is the study of how resources are allocated to meet needs and wants
What is Economics?
Countries produce what they are best at and trade with others.
What is one benefit of specialisation?
Money is not the only thing that measures development.
Why is HDI better than GDP for measuring development?
Building roads, schools and hospitals.
What is an example of capacity building?
They protect local industries from foreign competition.
What do tariffs/ quotas do?