Chap 19 Flashcards
imports
goods and services brought in from other countries
exports
goods and services sold to other countries
trade deficit?
when we import much more than we export
trade surplus
when we export more than we import
closed economy?
nation that doesn’t engage in international trade
production possibilities?
alternative combinations of fins goods and services that could be produced in a given time period with all available resources and technologies
consumption possibilities?
alternative combinations of goods and services that a country could consume in a given time period
open economy?
nation that engages in international trade
comparative advantage?
ability of a country to produce a specific good at a lower opportunity cost than its trading partners
absolute advantage?
ability of a country to produce a specific good with fewer resources than other countries
terms of trade?
rate at which goods are exchanged; the amount of good A given up for goos B in trade
dumping?
sale of goods in export market at prices below domestic prices
embargo?
a prohibition on exports or imports
tariff?
a tax imposed on imported goods
quota?
limit on the quantity of a good that may be imported in a given time period
