An economic system where resources are allocated by the government or a central planning authority
What is a command or planned economy?
100
The periodic fluctuations in real national income or GDP around the productive potential or long term trend of the economy.
What is the business cycle?
100
The price of one currency expressed in terms of another.
What is exchange rate?
100
The selling of a good in another country at a price below its cost of production.
What is dumping?
100
A situation where the government spends more than it receives in revenue and needs to borrow money, forcing up interest rates thereby reducing investment and consumption.
What is crowding out?
200
The responsiveness of the demand for one good to a change in the price of another good.
What is cross elasticity of demand?
200
The use of government spending and taxation to shift the AD curve.
What is fiscal policy?
200
An agreement whereby there is free trade among members countries, but each member can maintain its own trade barriers in trade with non-member countries.
What is free trade area?
200
Non-government organizations that exist to promote sustainable economic development and/or humanitarian ideals.
What are NGOs?
200
A sustained increase in the general or average level of prices.
What is inflation?
300
The upper limit imposed by the government below which the price may not fall - usually set below the equilibrium to aid relatively poor consumers.
What is maximum price?
300
The total value of all final domestic goods and services, adjusted for inflation.
What is real GDP?
300
Import barriers that set limits on the quantity or value of imports into a country.
What is quotas?
300
An international body that encourages the reduction of trade barriers between its member nations.
What is World Trade Organization?
300
The 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?
400
A market where a few large firms dominate the industry, with at least one other characteristic such as interdependency of firms, high barriers to entry, homogeneous or differentiated products.
What is an oligopoly?
400
The total spending in an economy consisting of consumption, investment, government expenditue and net exports.
What is aggregate demand?
400
Increase in the value of the currency, expressed in terms of another currency, in a floating exchange rate system.
What is appreciation?
400
Granted on the condition that it is used to buy goods or services from the donor country.
What is tied aid?
400
Implies that one country is able to produce a good at a lower opportunity cost than another.
What is comparative advantage?
500
Refer to a situation where all costs, including opportunity cost, are moer than covered by revenue.
What is supernormal or abnormal profits?
500
A demand-side policy with the Central Bank using changes in the money supply or interest rates to affect AD.
What is monetary policy?
500
Where the average price of exports falls relative to the average price of imports, or making it more expensive to buy imports, in terms of exports that need to be sold.
What is terms of trade deterioration?
500
Involves essential facilities and services such as roads, airports, sewage treatment, railways, and other utilities typically provided by the government.
What is infrastructure?
500
A measure of inequality in the distribution of income.