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Flashcards in Chapter 10 Deck (15):
1

Exports

The value of goods and services sold abroad

2

Imports

The value of goods and services purchased abroad

3

Does the United States have low exports compared to total output?

Yes

4

Where does the U.S. export majority of goods?

Canada and Mexico

5

Primary trading partners of U.S. ?

Canada, mexico, the European Union, the pacific rim countries

6

Q-1: how has the nature of U.S. imports from China changed in recent years?

The type of goods has changed from low tech to technologically advanced goods

7

Q-2: will a debtor nation necessarily be running a trade deficit?

No. Debt refers to accumulated past deficits. If a country had accumulated large deficits in the past it could run a surplus now but still be a debtor nation

8

3 policies used to restrict trade are

1. Tariffs (taxes on internationally traded goods)

2. Quotas (quantity limits placed on imports)

3. Regulatory trade restrictions (government imposed procedural rules that limit imports)

9

Tariffs

Tax that governments place on internationally traded goods

10

Another name for tariffs?

Custom duties

11

What is the most used type of trade restriction?

Tariffs

12

GATT a regular international conference to reduce trade barriers

General agreement on tariffs and trade

13

(WTO) world trade organization

An organization who’s functions generally the same as GATT (promote free and fair trade among countries)

14

Quota

Quantity limit placed on imports

15

Tariffs (like all taxes on suppliers) do what to the supply curve?

Shift it up by the amount of the tax