Economics P2 (Nov 2023) Flashcards
Globalisation
The breaking down of trade barriers to promote the free movement of goods, services, labour and capital to form a global economy
absolute advantage
ability of a company to produce more of a good or service than a competitor
comparative advantage
ability of a company to produce a good or service for a lower opportunity cost than a compettitor
north south divide
The gap, particularly in financial well‐being, between richer developed countries and poorer developing countries.
environment
physical surroundings and condditions that affect our lives
pollution
the presence of harmful substances in the environment
externalities
the costs and benefits of production incurred by third parties not involved in the production
food security
the state of having reliable access to a sufficient quantity of affordable, nutritious food
sustainability
avoidance of the depletion of natural resources in order to maintain an ecological balance
marketable permit
government issues permits allowing only a certain quantity of pollution. These permits to pollute can be sold or given to firms
carbon footprint
the total amount of greenhouse gases that are generated by our actions.
free trade
international trade left to its natural course without tariffs, quotas, or other restrictions.
conservation vs preservation
Conservation typically refers to attempts to make humans’ relationship with the environment sustainable while still extracting natural resources. Conservationists typically support measures that reduce human use of natural resources, but only when such measures will be beneficial to humans, e.g tax refunds to people who installed solar panels, Conservation can also refer to choices that people make every day to consume less, like taking shorter showers.
Preservation typically refers to the setting aside of areas of land that are either human-free, free of obvious marks of human influence like roads or fire pits, or whose sole human inhabitants are native people
