Economics EOYT

comparative advantage and international economics

law of demand

as price increases, demand decreases

law of supply

as price increases, supply increases

market equillibrium

when the supply of goods matches the demand

efficiency

when waste is eliminated and minimized

specialisation

narrowing goods down to what they are good at

tariff

a tax imposed on imported goods

protectionism

policy to protect domestic industries from foreign competition.

opportunity cost

the value of the next-highest valued alternative of that good

comparative advantage

an economy’s ability to produce a product or service at a lower opportunity cost than its trading partners

trade deficit

where a country's imports exceed its exports.

trade surplus

where a country's exports exceed its imports.

economic interdependence

the mutual dependence of the participants in an economic sustem who trade in order to obtain the producs they cannot produce