Economy World Trade Quiz Flashcards
1
Q
Comparable Advantage
A
Lower opp. cost in producing an item.
2
Q
Absolute Advantage
A
When it can produce more of a given amount of resources.
3
Q
Tariff
A
A tax on imports.
4
Q
Import Quota
A
Limiting the # of items of trade.
5
Q
Appreciation
A
The increase of value of currency.
6
Q
Depreciation
A
The decrease of the value of currency,
7
Q
Flexible Exchange Rate
A
Determined by supply and demand.
8
Q
Fixed Exchange Rate
A
Gov. tries to keep the value of currencies against one another.
9
Q
Trade Surplus
A
A nation exports more goods than it imports.
10
Q
Trade Deficit
A
Nation imports more goods than it exports.
11
Q
Specialization
A
When producers produce certain goods rather than all.
12
Q
Trade War
A
Escalating tariffs between 2 countries.
13
Q
WTO
A
Enforces rules between countries.
