Economics 5 Flashcards Preview

BEC 2014 > Economics 5 > Flashcards

Flashcards in Economics 5 Deck (10):
1

What is a Tariff?

A tax on imported goods

2

What is a quota?

A limit on the number of goods that can be imported

3

How do international trade restrictions affect domestic producers?

They are good for domestic producers.

Demand curve shifts right

Fewer substitutes

They can charge higher prices

4

How to international trade restrictions affect foreign producers?

They are bad for foreign producers

Demand curve shifts left

Fewer buyers

They must charge lower prices

5

How do international trade restrictions affect foreign consumers?

They are good for foreign consumers

Supply curve shifts right

Goods purchased at lower prices in the foreign markets

6

How do international trade restrictions affect domestic consumers?

They are bad for domestic consumers

Supply curve shifts left

Fewer goods bought due to higher prices

7

What is Accounting Cost?

Explicit (Actual) cost of operating a business

Implicit costs are opportunity costs

8

What is Accounting Profit?

Revenue - Accounting Cost

9

What is Economic Cost?

Explicit + Implicit Cost

10

What is Economic Profit?

Revenue - Economic Cost