International Economics Test Practice

The ability of one person or nation to produce more of a good than another person or nation

• Comparative Advantage
• Absolute advantage
• exports
• protectionism 

The use of trade barriers to protect a nation’s industries from foreign competition

• Balance of trade
• NAFTA
• Quotas
• Protectionism 

Exports minus imports or how many goods a county exports versus imports

• Exports
• Subsidy
• Quotas
• Balance of Trade

A regional trade organization made up of European nations

• NAFTA
• EU
• ASEAN
• CARICOM

Agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the US

• NAFTA
• EU
• ASEAN
• CARICOM

Limit of the amount of a good that can be imported

• Subsidy
• Quota
• Exports
• Appreciation 

A good that is sent to another country for sale

• export
• import
• quota
• subsidy 

An increase in the value of a currency

• apprecation
• depreciation
• quota
• subsidy

Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the government

• Balance of trade
• protectionism
• exchange rate
• subsidy

When a nation imports more than it exports, economists say it has which of the following?

• A trade surplus
• A balance of trade
• A trade deficit
• A national difference