Theme 4 Flashcards
1
Q
Absolute advantage
A
When a country can produce a good more cheaply in absolute terms than another country
2
Q
Absolute poverty
A
When people are unable to afford sufficient necessities to maintain life; those on less than $1.90 a day
3
Q
Appreciation
A
An increase in the value of the currency using floating exchange rates
4
Q
Asymmetric information
A
When one party has more knowledge than another; this causes market failure in the financial sector
5
Q
Automatic stabilisers
A
Mechanisms which reduce the impact of changes in the economy on national income
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
