Glossary For HSC Economics by Adam Williams

Externality

c3492653 — 2024-07-16 03:47:27 UTC

The impact of an individual's or company's actions on the well-being of a bystander (another person not directly involved) or another company's production capability.

(Gans et al., 2009)

(Perloff, 2009)

Learn more from the following video.

https://www.youtube.com/watch?v=CuJ4E1UMk3c

Public Goods

c3492653 — 2024-07-16 04:04:00 UTC

Certain goods (products/infrastructures) may not be available in the market or provided in insufficient (Not enough) quantity to meet the community's needs. In such cases, the government must step in to deliver these goods. Public goods may include defence forces, navigation buoys, lighthouses, bridges, and railways.

(Stiglitz, 2000)

For further learning on Public goods, see the video below.

https://www.youtube.com/watch?v=K4qvB7KXAw4

Import Quota

c3492653 — 2024-07-16 04:33:54 UTC

A limit on the quantity of a good produced abroad (another nation) that can be sold domestically.

(Gans et al., 2009).

Import Quota v Import Tariff explained video below:

https://www.youtube.com/watch?v=5yRrLejMwrs

Tariff

c3492653 — 2024-07-16 05:02:27 UTC

It is a duty or tax on imported goods (brought from another country to sell domestically).

(Perloff, 2009)

Import Quota v Import Tariff explained video below:

https://www.youtube.com/watch?v=5yRrLejMwrs

Depreciation

c3492653 — 2024-07-16 05:19:32 UTC

Currency depreciation signifies a reduction in its value in relation to the amount of foreign currency it can purchase. This can have far-reaching implications on trade and economic conditions.

(Gans et al., 2009)

See the video link for more information.

https://www.youtube.com/watch?v=HRwMeLjE3L0

Crowding Out

c3492653 — 2024-07-16 05:29:00 UTC

A decrease in investment in the economy that results from government borrowing.

When a government borrows money to fund budget deficits, the decrease in the money supply limits the investment opportunities of private investors in the economy.

(Gans et al., 2009)

See the video link for more information.

https://www.youtube.com/watch?v=7da2Yy0zXPY

Bibliography*

c3492653 — 2024-07-16 05:33:14 UTC

Clifford, J. (2023). Terms of Trade Practice- Comparative Advantage. Retrieved from Youtube: https://www.youtube.com/watch?v=RDqq4gaLrmQ

EconplusDal. (2016). Lorenz Curve and Gini Coefficient - Measures of Income Inequality. Retrieved from Youtube: https://www.youtube.com/watch?v=ns9f2FOc26M&t=4s

Frankfurt School of Finance & Management. (2018). What does Current Account mean? Retrieved from Youtube: https://www.youtube.com/watch?v=PjUoTisPPVo

Franz, I. (2019). Import Tariff v.s. Import Quota (Carbaugh Chapter 5, Figure 5.2). Retrieved from Youtube: https://www.youtube.com/watch?v=5yRrLejMwrs

Gans, J., King, S., Stonecash, R., & Mankiw, N. (2009). Principles of Economics 4th Ed. Melbourne: Cengage Learning.

Marginal Revolution University. (2018). What Is Crowding Out? Retrieved from Youtube: https://www.youtube.com/watch?v=7da2Yy0zXPY

Milton, F. (1978). Milton Friedman - Only Government Creates Inflation. Retrieved from Youtube: https://www.youtube.com/watch?v=F94jGTWNWsA

One Minute Economics. (2017). Currency Wars (Competitive Currency Devaluations) Explained in One Minute. Retrieved from Youtube: https://www.youtube.com/watch?v=HRwMeLjE3L0

One Minute Economics. (2019). Positive and Negative Externalities Defined & Explained in One Minute: Education vs. Pollution? Retrieved from Youtube: https://www.youtube.com/watch?v=CuJ4E1UMk3c

Perloff, J. M. (2009). Microeconomics 5th Ed - International Ed. Sydney: Pearson - Addison Wesley.

Professor Dave Explains. (2022). Public Goods and Externalities. Retrieved from Youtube: https://www.youtube.com/watch?v=K4qvB7KXAw4

Stiglitz, J. E. (2000). Economics of the Public Sector 3rd Ed. New York & London: W.W. Norton & Company.

Yarbrough, R., & Yarborough, B. (2006). The World Economy - Trade and Finance 7th Ed. Mason, OH, USA: Thomson South-Western.

Inflation

c3492653 — 2024-07-16 05:44:45 UTC

An overall increase in the level of prices in an economy.

Understanding the term "inflation rate" is crucial, as it refers to the percentage change in the price index from the preceding period. This knowledge empowers you to make informed economic decisions.

(Gans et al., 2009).

Listen to one of the greatest economics of the late 20th century explain inflation in the video below

https://www.youtube.com/watch?v=F94jGTWNWsA

Terms of Trade (ToT)

c3492653 — 2024-07-16 05:54:17 UTC

Terms of trade (TOT) is the ratio of a country's export prices to its import prices. TOT indexes are calculated as the value of a country's total exports minus its total imports. The ratio is obtained by dividing the price of the exports by the price of the imports and then multiplying the result by 100.

(Yarbrough, G., & Yarbrough, S. 2006).

Learn more about terms of trade below

https://www.youtube.com/watch?v=RDqq4gaLrmQ

Current Account

c3492653 — 2024-07-16 06:02:10 UTC

The current account keeps track of a nation's transactions with the rest of the world, including its trade balance in goods and services, earnings on cross-border investments, and transfer payments over a specific period, such as a year or a quarter.

(Yarbrough, G., & Yarbrough, S. 2006).

Learn more from the video below.

https://www.youtube.com/watch?v=PjUoTisPPVo

Lorenz curve

c3492653 — 2024-07-16 06:15:32 UTC

Economists often use the Lorenz curve diagram to demonstrate income inequality in an economy. The Lorenz Curve shows the cumulative fractions of the country's total income earned by the poorest 5 %, the Poorest 10 %, the Poorest 15 %, and so on. If the Lorenz curve is a straight line, the welfare is spread equitably across the economy; the more significant the curve bends inverted and to the right, the more uneven the economy (this is known as the Gini Co-efficient).

(Stiglitz, 2000)

Learn more from the video below.

https://www.youtube.com/embed/ns9f2FOc26M?si=JF-jZwMNxAblsrx9