Lesson 3 Trade Quizs

Absolute advantage

• The ability to produce more of a good or service than another producer using the same resources.

• The condition that exists when someone can produce a good or service using fewer resources than someone else.

• The situation where a country can produce a good at a lower opportunity cost than another country.

• The ability to sell a good or service at a lower price than competitors.

World Trade Organization (WTO)

• A permanent global institution to promote international trade and to settle international trade disputes

• A regional organization focused on trade within Europe

• A non-governmental organization that advocates for fair trade practices

• A financial institution that provides loans to developing countries

Exports

• Goods produced domestically and sold in other countries

• Goods produced in other countries and sold domestically

• Goods that are not sold internationally

• Goods that are produced but not sold

Least developed country (LDC)

• A country with high levels of industrialization and economic growth

• A country at the lowest stage of economic development; often suffers from severe poverty and low standards of living

• A country that has achieved significant technological advancements

• A country with a stable economy and high standards of living

Money

• A generally accepted medium of exchange that can be traded for goods and services or used to pay debts

• A type of currency that is only valid in specific regions

• A digital form of currency that cannot be exchanged for physical goods

• A collectible item that holds value but is not used for transactions

Barter

• The direct exchange of goods or services without the use of money; a typical feature of traditional economies

• A system of trade that uses currency as a medium of exchange

• A method of selling goods at a discount to increase sales

• A form of investment in stocks and bonds

Voluntary exchange

• The act of willingly trading one item or service for another

• A mandatory trade enforced by law

• A trade that occurs only under duress

• An exchange that requires government approval

Economic interdependence

• The characteristic of a society in which people rely on others for most of the goods and services they want

• A system where all goods and services are produced locally

• A situation where individuals are completely self-sufficient

• A type of economic model that promotes isolationism

Protective Tariff

• A tax on imported goods that is intended to protect a nation's businesses from foreign competition

• A subsidy given to local businesses to encourage production

• A fee charged for exporting goods to other countries

• A regulation that limits the amount of foreign goods that can be sold

Developing Country

• A country with a high standard of living and access to goods and services

• A low to medium income country in which most people have less access to goods and services than the average person in a developed country

• A country that has achieved full industrialization and economic stability

• A nation primarily focused on agricultural production and subsistence farming