Theme 4 Flashcards

1
Q

Absolute advantage

A

When a country can produce a good more cheaply in absolute terms than another country

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2
Q

Absolute poverty

A

When people are unable to afford sufficient necessities to maintain life; those on less than $1.90 a day

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3
Q

Appreciation

A

An increase in the value of the currency using floating exchange rates

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4
Q

Asymmetric information

A

When one party has more knowledge than another; this causes market failure in the financial sector

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5
Q

Automatic stabilisers

A

Mechanisms which reduce the impact of changes in the economy on national income

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6
Q

Balance of payments

A

A record of all financial dealings over a period of time between economic agents of one country and another

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