Unit 4 Flashcard International Economics

Front

Trade must be ________ and __________.

Back

Voluntary and Non-fradulent

Front

What is "The ability to produce more goods/services than another country"?

Back

Absolute Advantage

Front

What is "The ability to produce at a lower opportunity cost than another country"?

Back

Comparative Advantage

Front

Dan can eat either a hot dog or a hamburger. He chooses to eat the hot dog. What is his opportunity cost?

Back

Hamburger

Front

Comparative advantage is a contributing factor to________.

Back

International trade

Front

What occurs when IMPORTS are greater than EXPORTS?

Back

Trade Deficit

Front

What occurs when EXPORTS exceed IMPORTS?

Back

Trade Surplus

Front

What is the formula for calculating comparative advantage?

Back

Cost/Output

Front

What country has the ABSOLUTE advantage in Water Bottles?

Back

Canada

Front

What country has the COMPARATIVE advantage for Water Bottles?

Back

CANADA