International Economics Vocabulary Quiz

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

• Comparative Advantage
• Absolute advantage
• exports
• protectionism 

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 

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

Measure the price of one nation’s currency in terms of another nation’s currency 

• appreciation 
• depreciation
• exchange rate
• balance of trade

What is an official ban on trade or other commercial activity with a particular country?

• Tariff
• Product standard
• Embargo
• Quota

A record of all transactions between the residents of a country and the residents of all other countries, over a period of time.

• balance of payments

• export ledger

• import ledger

• Net Export Account

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

• Absolute Advantage

• Comparative Advantage

• Monopoly

• Governmental Advantages

Goods or services produced in another country and purchased by the home country.

• exports

• imports

• transports

• outgoers