International Economics Vocabulary Quiz

The exchange of goods, services, and/or productive resources among individuals, businesses, and firms.

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

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

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

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

Occurs when the value of a country's exports fall short of the value of its imports.

Occurs if the value of a country's exports exceeds the value of its imports.

Tax placed on goods imported into a country.

Limits the quantity of a good imported into a country.

Completely bans trade with a country, usually due to political disputes.