Econ Unit 6- International Trade review

Front

Goods and services that a country produces and sells to other countries

Back

exports

Front

A key to trading is specialization. Which of the following is an incorrect association between a country and what they specialize in producing? Saudi Arabia- oil, Honduras- bananas, Japan- electronic devices, All the above are correct associations between a country and what they specialize in producing.

Back

All the above are correct associations between a country and what they specialize in producing.

Front

Country's ability to produce more of a given product than another country can

Back

absolute advantage

Front

When a country can produce a product at a lower opportunity cost than another country

Back

comparative advantage

Front

barrier to trade that places a tax on imports

Back

tariff

Front

barrier to trade that limits the amount of goods or services that can be imported

Back

quota

Front

government payment to a domestic producer to encourage or protect a certain economic activity

Back

subsidy

Front

If the U.S. government disagrees with a foreign country's policies and wants to prevent trading with that country, the MOST effective action the U.S. government can take is to

Back

place an embargo on all goods from that country

Front

Which definition BEST describes the term balance of trade?

Back

the value of a country's exported goods and services minus the value of goods and services a country imports

Front

What is the MOST LIKELY result of an increase in the value of the U.S. dollar against the Chinese currency?

Back

U.S. consumers of Chinese goods would benefit