government legislation [= the imposition of tariff] against the selling of imported goods at a price below their production costs
What is anti-dumping
100
the four types of resources used in the production process: land, labor, capital (and possibly entrepreneurship / management / enterprise).
What is the factors of production
100
a demand-side policy with the Central Bank using changes in the money supply or interest rates to affect AD.
What is monetary policy
100
a broader concept than economic growth involving welfare improvements to the standard of living including health, education and shelter.
What is economic development
100
quantity of goods and services that consumers are willing, and able to buy at each possible price (over a given period of time).
What is demand
200
where the value of total imports of goods and services plus net income flows are greater than the value of total exports of goods and services
What is a current account deficit
200
a fall in long run unit costs that comes about as a result of a firm increasing its scale of operations.
What is economies of scale
200
policies designed to shift the AS curve to the right. They may include tax cuts, reductions in welfare payments, promotion of training etc.
What is supply-side policies
200
is granted on the condition that it is used to buy goods or services from the donor country.
What is tied aid
200
a fall in the value of one currency against another currency in a floating exchange rate system.
What is depreciation
300
implies that one country is able to produce a good at a lower opportunity cost than another.
What is comparative advantage
300
the responsiveness of the demand for one good to a change in the price of another good.
What is cross elasticity of demand
300
long term unemployment that occurs when there is a mismatch between the skills of unemployed workers and the jobs available or that exists as a result of rigidities in the labor market.
What is structural unemployment
300
the establishment of production units by multinational companies in a foreign country.
What is foreign direct investment
300
By breaking down the production process, a firm can increase its economies of scale
What is division of labor
400
implies that one country is able to produce a good at a lower opportunity cost than another.
What is appreciation
400
the measure of the responsiveness of demand of a good or service to a change in income.
What is income elasticity of demand
400
a situation where the government spends more (government expenditure) than it receives in revenue (mainly taxation), and needs to borrow money, forcing up interest rates thereby reducing investment and consumption
What is crowding out
400
designed to encourage the domestic production of goods, rather than importing them. The strategies encourage protectionism.
What is import substitution policies
400
Occurs as a result of increasing aggregate demand in the economy
What is demand-pull inflation
500
where the exchange rate (i.e. price of one currency in terms of another) changes according to the market forces of demand and supply.
What is a floating exchange rate
500
the lower limit imposed by the government below which the price may not fall….usually set above the equilibrium to aid farmers.
What is minimum price OR price floor
500
where the proportion of income paid in tax falls as the income of the taxpayer rises or where the average rate of tax falls as income rises.
What is regressive taxes
500
involves low incomes which lead to low savings and low investment which ensure low incomes in the future.
What is poverty cycle
500
Occurs when import prices rise by more than export prices, or when import prices fall by relatively less than export prices fall