International Economics Review

Front

Which of the following is true?
Absolute advantage leads to most trade.
Comparative advantage leads to most trade.
Comparative advantage has no effect on trade.
Comparative and absolute advantage are the same.

Back

Comparative advantage leads to most trade.

Front

What is the ability to produce more of a given product with the same amount of resources known as?

Back

absolute advantage

Front

What is the ability to produce a product most efficiently known as?

Back

Comparative advantage

Front

When a currency gains value, we say it has

Back

appreciated

Front

When a currency loses value, we say it has

Back

depreciated

Front

A trade war is a cost of

Back

trade barriers

Front

People traveling to another country and people who import foreign goods benefit from

Back

appreciation

Front

Embargoes, tariffs, and quotas are examples of

Back

trade barriers

Front

An exchange rate

Back

is the value of a currency relative to another currency.

Front

What is the term for the cost of the next best alternative use of money, time, or resources when one choice is made rather than another?

Back

Opportunity cost