Chapter 17: Resources for Global Trade REview

What term describes one country's ability to produce more of a given product than another country?

• Absolute advantage

• Balance of payments

• Comparative advantage

• Fixed exchange rates

What is represented by a diagram showing the maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed?

• Production possibilities curves

• Foreign exchange

• Revenue tariff

• Floating exchange rates

Which term best describes the ability of a country to produce a given product more efficiently than another country?

• Comparative advantage

• Absolute advantage

• Opportunity cost

• Protective tariff

What is the term for the best alternative use of money, time, or resources when one choice is made rather than another?

• Opportunity cost

• Balance of payments

• Revenue tariff

• Fixed exchange rates

What is a tax on an imported product designed to protect less efficient domestic producers called?

• Protective tariff

• Revenue tariff

• Foreign exchange

• Balance of payments

What is a tax placed on imported goods to raise revenue called?

• Revenue tariff

• Protective tariff

• Opportunity cost

• Comparative advantage

What term describes the difference between money paid to and money received from other nations when engaged in trade?

• Balance of payments

• Foreign exchange

• Revenue tariff

• Floating exchange rates

What term is used for foreign currencies utilized by countries to conduct international trade?

• Foreign exchange

• Fixed exchange rates

• Floating exchange rates

• Balance of payments

What system relies on supply and demand to determine the value of one currency in terms of another?

• Floating exchange rates

• Fixed exchange rates

• Foreign exchange

• Balance of payments

What system fixes the values of currencies in relation to one another?

• Fixed exchange rates

• Floating exchange rates

• Foreign exchange

• Balance of payments