YOUR DEFINITIONS CAN I GET A HELL YEAH Flashcards
ToT Definition
Index shows country’s $X relative to $M
International Competitiveness
Ability of business to compete effectively in international markets
Define Globalisation
Freer movement of goods, services, investment, ideas and people around the world
Comparative Advantage
The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity
Absolute Advantage
The ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources
Trade intensity formula
Exports and Imports / GDP
Definition of Balance of Payments
Set of accounts that summarise all financial transactions passing between Australia and the rest of the world
Exchange Rate
The price of one currency in terms of another - exchanged in the foreign exchange market
FREE FLOATING CURRENCY
Trade Weighted Index
A weighted average of exchange rates of Australia versus foreign currencies, with the weight for each foreign country equal to its share in trade.
Business Cycle
describes the rise and fall in production output of goods and services in an economy.
Fiscal Policy
Use of government revenue and expenditure to influence a countries economy
Monetary Policy
Actions taken by the RBA to influence price and availability of credit in the economy
Cash Rate
The interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis.
Structural Change
Changes in output, income and employment across industries over time - reflects changes in preferences by buyers and decisions by firms
Productivity
Efficiency with which businesses convert productive resources into output of goods and services
