International Trade and Money Questions and Answers 2023

Ad valorem tax - -Indirect tax where a given percentage is added to price of a good or service -Administrative barriers - -Administrative requirements that prevent or reduce amount of imports -Aggregate demand - -Total amount of spending of spending in the economy, made up of household consumption, firm investments, government expenditure and net export spending -Aggregate supply - -Total amount of domestic goods and services supplied by business and the government, including both consumer and capital goods -Allocative efficiency - -When marginal social cost of producing a good is equal to the marginal social benefit of the good to society, where P = MC -Appropriate technology - -Technology that caters for the specific economic, social and environmental attributes of its users -Automatic stabilisers - -Features of government fiscal policy such as unemployment benefits and direct tax revenues, that automatically counter-balance fluctuations in economic activity -Balanced budget - -Situation existing when planned government spending is equal to planned government expenditure