EOC Unit 4 International Economics

an individual, firm, or country using the fewest inputs to produce the same amount of output or the individual, firm, or country producing the largest number of units of output given the same productive resources.

• absolute advantage

• comparative advantage

in production of a good or service exists when one individual, firm, or country has the lowest opportunity cost for producing the good or service.

• absolute advantage

• comparative advantage

Explain that most trade takes place because of --------- advantage in the production of a good or service.

• absolute

• comparative

the value of its exports minus the value of its imports for measurable during a specific time

• balance of imports

• balance of exports

• balance of trade

If the value of a country’s exports exceeds the value of its imports

• trade deficit

• trade surplus

• balance of trade

If the value of a country’s exports fall short of the value of its imports

• trade deficit

• trade surplus

• balance of trade

limit the flow of goods, services, and productive resources between countries.

• trade surplus

• trade barriers

• balance of trade

refers to the unrestricted flow of goods, services, and productive resources between countries

• free trade

• balance of trade

• trade surplus

• trade deficit

a tax placed on goods imported into a country

• quota

• export

• tariff

• embargo

limits the quantity of a good imported into a country

• embargo

• quota

• tariff