Micro Test 4 Flashcards
The number of units of one nation’s currency that equals one unit of another nation’s currency
Exchange rate
The flow of foods between countries without restrictions or special taxes
Free trade
The organizations and methods used to determine what goods and services are produced, how they are produced, and for whom they are produced
Economic System
The government’s use of embargoes, tariffs, quotas, and other restrictions to protect domestic producers from foreign competition
Protectionism
An economic system that answers the What, How, and For Whom questions that way they have always have been answered
Traditional economy
A law that bars trade with another country
Embargo
A tax on an import
Tariff
An economic system that answers the What, How, and For Whom questions by a dictator or central authority
Command economy
An economic system characterized by government ownership of resources and centralized decision making
Socialism
A limit on the quantity of a good that may be imported in a given time period
Quota
Was a philosopher and economist famous for his ideas about capitalism and communism
Karl Marx
A fall in the price of one currency relative to another
Depreciation of Currency
The process of turning a government enterprise into a private enterprise
Privatization
An economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems
Mixed Economy
The ability of a country to produce a good at a lower opportunity cost than another country
Comparative advantage
The lending agency that makes long-term low-interest loans and provides technical assistance to less-developed countries
World Bank
The lending agency that makes short-term conditional low-interest loans to developing countries
IMF-Inter. Mont. Fund
The transfer of money or resources from one government to another with no repayment required
Foreign Aid
A rise in the price of one currency relative to another
Appreciation of currency
An economic system characterized by private ownership of resources and markets
Capitalism
An economic system that answers the What, How, and For Whom questions using pries determined by the interaction of the forces of supply and demand
Market economy
The ability of a country to produce a good using the same or fewer resources than another country
Absolute advantage
Capital goods usually provided by the government, including highways, bridges, waste and water systems, and airports
Infrastructure
The strong belief that the interests of a particular nation-state are of primary importance. Also, the belief that a people who share a common language, history, and culture should constitute an independent nation, free of foreign domination
Nationalism
An economic system characterized by private ownership of resources and markets
Capitalism
