Academic Vocabulary Quiz

A limit placed on the quantities of a product that can be imported 

• Quota

• Incentive

• Opportunity Cost

• Tariff

A tax placed on imports to increase their price in the product market

• Quota

• Incentive

• Opportunity Cost

• Tariff

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another (AKA Loss)

• Quota

• Incentive

• Opportunity Cost

• Tariff

Something that motivates

• Quota

• Incentive

• Opportunity Cost

• Tariff

The buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

• Trade

• Absolute Advantage

• Comparative Advantage

• Specialization

When a country can produce more of a product than another country

• Trade

• Absolute Advantage

• Comparative Advantage

• Specialization

Country’s ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost

• Trade

• Absolute Advantage

• Comparative Advantage

• Specialization

Tasks to workers, factories, regions, or nations that can perform them most efficiently

• Trade

• Absolute Advantage

• Comparative Advantage

• Specialization

People who want to protect domestic producers against foreign competition with tariffs, quotas, and other trade barriers

• Protectionism

• Voluntary exchange

• Economic interdependence

• International trade

Act of buyers and sellers freely and willingly engaging in market transactions, benefiting both buyer and seller

• Protectionism

• Voluntary exchange

• Economic interdependence

• International trade