POB Chapter 3.1 Review

Front

Which of the following situations represents an absolute advantage? Saudi Arabia in fresh fish production, Honduras in banana production, Canada in rice production, Norway in orange and grapefruit production

Back

Honduras in banana production

Front

Which of the following products is NOT imported to the United States in any great quantity?
milk,
oil,
coffee,
silk

Back

milk

Front

The amount a country owes to other countries is called

Back

foreign debt

Front

Which of the following would likely cause the value of the dollar to RISE?
an increased U.S. trade deficit,
higher U.S. interest rates,
lower U.S. inflation,
Saudi Arabia doubles the price of the oil it sells the United States

Back

lower U.S. inflation

Front

A ____ occurs when a country sells more to other countries than it buys from other countries.

Back

trade surplus

Front

Exists when a country can produce a good or service at a lower cost than other countries.

Back

absolute advantage

Front

The cost of using someone else’s money.

Back

interest rate

Front

Items sold to other countries.

Back

exports

Front

Exists when a country specializes in the production of a good or service at which it is relatively more efficient.

Back

comparative advantage

Front

Occurs when a country buys more than it sells.

Back

trade deficit