Economic terms #2

Question 1

Diversification

Answer 1

Owning a wide variety of investments to reduce volatility

Question 2

Sustainable growth

Answer 2

a level of growth that a business or economy can maintain over the long term without causing significant harm to the environment, society, or future generations.

Question 3

Subsides

Answer 3

A benefit (given by the government) to individuals, firms, and/or institutions to get rid of financial burdens.

Question 4

Trade surplus

Answer 4

When the value of a country’s exports are MORE than their imports

Question 5

Trade deficit

Answer 5

When a country’s exports are LESS than their imports.

Question 6

Specialisation

Answer 6

When countries will export g+s that they are good at producing and import g+s they are not good at producing.