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Economics

The flashcards below were created by user jessical on FreezingBlue Flashcards.

  1. NZ top exports
    • dairy prouducts 
    • meat
    • timber
    • crude oil
  2. NZ to imports
    • pertol
    • mechanical equpiment
    • vehicles
    • electrical equiment
  3. NZ top export contries
    • austrailia
    • china
    • USA 
    • japan
  4. NZ top import
    • China
    • Australia
    • USA
    • Japan
  5. Absoulte advantage
    who ever has the abilty to produce at the lowest unit cost efficentcy
  6. comparative advantage
    who can proudes at the lowest opportunity cost
  7. off shore
    are goods and services sold overseas users out side of new zealand
  8. onshore
    sold to overseas people but consumed in nz
  9. How do  you work out opportunity cost
    sacrifice deived by gain
  10. Balance on goods is
    exported goods - imported goods
  11. balance on services is
    exported serives - imported services
  12. balance on investment income
    income from investments aboard - investments from foreign invesments
  13. balance on current transfers
    inflows of current transfers - out flow of current transfers
  14. Current account is...
    • balance of goods 
    • + balance of services 
    • + Balance on investment income
    • + balance on transfers
  15. Why is trade important to NZ economy
    because we depend on critical imports such as oil to keep the econmoy working at its current standard
  16. NZ producer worse off
    • less money
    • will need less workers or fewer hours for workers
    • may switch production
    • reduced investment
  17. Nz producers better off
    • more income
    • more workers or more hours for workers
    • may stop prduceing less profitable goods
    • increased investment
  18. NZ consumers worse off
    • have to pay more 
    • standard of the g+s lower as best gets exported
  19. NZ consumers better off
    get to pay less
  20. NZ Government worse off
    • less tax paid because less profit
    • less income tax
    • more U/E = more benifts
    • less govt spending
    • less indirect tax = no one spending
  21. NZ Government better off
    • more tax paid more profits
    • more income tax
    • less U/E = less welfare benfits
    • more govt spending
    • more indriect tax because more spending
  22. Overseas customers worse off
    less goods revived as imports prices will rise
  23. overseas customers better off
    • more goods revived as imports 
    • prices will fall
  24. NZ exchange rate worse off
    • Nz dollar falls
    • fewer goods exported
    • less demand for nz dollar
  25. NZ exchange rate better off
    • NZ dollar rise
    • more goods exported
    • more demand for NZ dollar
  26. Balance of payments worse off
    less goods exported there fore exports decrease so net exports will decrease ( exports - imports = net exports)
  27. Balance of payments better off
    more goods exported there fore exports increase so net exports will increase ( exports - imports = net exports)
  28. Tariff benefits  ....
    • NZ producers of imported goods
    • employees at those products
    • the Govt. as it receives revenue from from the tariff e.g. more income tax less beifits
  29. Tariff disadvantages
    • exporters who have to face higher tariffs from trading partner in relation for tariffs on imported goods into NZ
    • employees in the export industries
    • consumers as the price goes up my the amount of the tariff
  30. impact if an tariff is removed
    • NZ consumer cheaper and more wider range in imported goods
    • employees in that industries may lose there job
    •  some firms may shut down
    • other exporting firms  may benefit as cheaper to produce, less competition
    • Govt. will lose from revenue from tariff
  31. the supply of the NZ$ in the foregin exchange market increase when
    • imports increase
    • NZ travel over seas
    • interest rates overseas increase
    • the NZ economy seems to be weakling relative to overseas economies
    • deprecation in the exchange rate
  32. COPTSPORGITGST
    • cost of production
    • taxes
    • subsidies
    • price of related goods
    • import taxes/ trariffs
    • GST
  33. the demand for NZ$ in the foreign exchange market increase when..
    • exports increase
    • overseas people travel to NZ
    • NZ economy seems to be strenthing retaliative to overseas economies
    • an increase in demand would cause a appreciation of the exchange rate
  34. Aggregate supply is
    COPTSPORGITGST
Author:
 jessical
ID:
 243583
Card Set:
 Economics
Updated:
2013-10-29 19:54:43
Tags:
Trade
Folders:

Description:
revision for test
Show Answers:

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