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Honors Economics > Unit 7: The Global Economy > Flashcards

Unit 7: The Global Economy Flashcards

(50 cards)

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1
Q

Absolute Advantage Definition

A

The ability to produce a good or service with the least amount of resources.

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2
Q

Comparative Advantage Definition

A

The ability to produce a good or service with the lowest opportunity cost.

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3
Q

Exports Definition

A

Goods that are produced domestically and sold to a foreign country.

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4
Q

Imports Definition

A

Goods and services that are produced in a foreign country and purchased domestically.

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5
Q

Law of Comparative Advantage Definition

A

The principle that a country will export goods for which it has comparative advantage.

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6
Q

Embargo Definition

A

A ban on trade with a specific country.

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7
Q

International Trade Definition

A

The exchange of goods and services between countries.

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8
Q

Quota Definition

A

A limit on the number of goods that a country can import or export during a specific time period.

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9
Q

Subsidy Definition

A

A payment made by the government to domestic producers.

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10
Q

Tariff Definition

A

A tax on imports.

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11
Q

Trade Barriers Definition

A

Government-imposed restrictions on trade.

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12
Q

Trade War Definition

A

A conflict between countries in which they impose trade barriers against each other.

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13
Q

Asia-Pacific Economic Cooperation (APEC) Definition

A

an economic forum consisting of 21 countries in the Asia-Pacific region

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14
Q

European Union Definition

A

a political and economic union of European states

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15
Q

International Trade Agreements Definition

A

multinational agreements on trade conditions

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16
Q

North American Free Trade Agreement (NAFTA) Definition

A

a trade agreement between the United States, Mexico, and Canada established in 1994 and renegotiated as the United States-Mexico-Canada agreement

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17
Q

Protectionism Definition

A

the concept of protecting a country’s domestic industries from foreign competition

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18
Q

United Nations (UN) Definition

A

a political and diplomatic organization established to promote economic and social cooperation between nations

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19
Q

United States-Mexico-Canada Agreement Definition

A

a free trade agreement between Canada, Mexico, and the United States resulting from a renegotiation of the North American Free Trade Agreement

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20
Q

Appreciation Definition

A

An increase in the value of one currency in terms of another

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21
Q

Balance of Payments Definition

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A

The difference between the total amount of money coming into a nation and the total amount leaving

22
Q

Balance of Trade Definition

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A

The difference in monetary value of a country’s exports and imports

23
Q

Depreciation Definition

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A

A decrease in the value of one currency in terms of another

24
Q

Exchange Rate Definition

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A

The value of one country’s currency in terms of another country’s currency

25
Fixed Exchange-Rate System Definition
A system in which the exchange rate of a currency is tied to a fixed quantity of another currency
26
Flexible (Floating) Exchange-Rate System Definition
A system in which the exchange rate of a currency is determined by market forces
27
Foreign Exchange Market Definition
The market in which currencies are traded
28
Pegged Exchange Rate Definition
An exchange rate for a currency that is fixed to a particular quantity of another currency
29
Speculative Attacks Definition
The large-scale selling of a country’s currency in an effort to drain its foreign reserves
30
Trade Deficit Definition
A negative balance of trade that occurs when a country’s imports exceed exports.
31
Trade Surplus Definition
A positive balance of trade that occurs when a country’s exports exceed imports
32
Developed Nation Definition
A nation with advanced technology and infrastructure and a diverse industry.
33
GDP Definition
The total monetary or market value of all the finished goods and services produced within a country’s border in a specific time period.
34
Human Development Index Definition
A statistical measure of life expectancy and health, knowledge and education, and standard of living published by the United Nations.
35
Income Per Capita Definition
The average income earned by individuals in a country.
36
Infant Mortality Rate Definition
The number of deaths per 1,000 live births of children under one year of age.
37
Less Developed Nation Definition
A nation with low GDP, low average household income, and weak infrastructure.
38
Life Expectancy Definition
The average age that people will live to.
39
Literacy Rate Definition
The percentage of a population who can read and write.
40
Per Capita GDP Definition
The measure of per-person economic output in a country.
41
Foreign Aid Definition
The transfer of money to countries to assist with economic, military, or emergency humanitarian situations.
42
Foreign Investment Definition
The movement of capital between countries through which domestic investors take ownership of foreign companies and assets.
43
Foreign Direct Investment Definition
Investment in a particular foreign business by which an investor takes a stake in ownership.
44
Foreign Portfolio Investment Definition
The purchase of stocks or bonds issued by businesses in foreign countries.
45
United Nations Development Programme Definition
An agency of the United Nations that aims to reduce poverty and improve development internationally
46
World Bank Definition
An international financial institution that provides financing, training, and knowledge exchange to address global issues.
47
Economies of Scale Definition
The reduction in per-unit costs of production that occurs with increasing output.
48
Globalization Definition
The process of integration among individuals, corporations, and governments of different countries, driven by international trade, international investment, and information technology.
49
Income Distribution Definition
The distribution of a country’s GDP among its working population.
50
Information Economy Definition
An economy in which knowledge and information are highly valued.

Honors Economics (7 decks)

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