Trade
What term describes a good brought in from another country?
import
Pollution is an example of a negative __________.
externality
What is the system of markets and trade that links the countries of the world?
global economy
Which kind of economy is most common today?
mixed economy
Suppose medical research were to identify blueberries as a powerful "brain food." How would that affect the demand curve for blueberry smoothies?
It would shift to the right.
What trade barrier completely shuts off trade between two countries?
embargo
Vaccines are an example of a __________ externaility.
positive
What is one benefit of global trade for consumers in the United States?
Global trade lowers the price of goods.
What three questions determine the type of economic system?
What to produce
How to produce
For whom to produce
What does elasticity measure?
responsiveness to a price change
What does the following example demonstrate?
An assistant in a tailoring shop only replaces zippers.
specialization
What term describes the situation in which common resources are depleted?
tradedy of the commons
Which term describes the fact that we depend on others to produce most of the goods and services we want?
economic interdependence
Individuals own the factors of production and make decisions about how to use those factors in a _________ economic system.
market or free enterprise system
Insulin is more likely to be ________ demanded?
inelastically
What does it mean when a country is in a trade surplus?
Its exports exceed its imports.
Give an example of a public good
street lights, national defense, fire or police, etc.
Why might a country place a protective tariff on imported goods?
to protect domestic producers from foreign competition
Free markets are are governed by...
the law of supply and demand
What is the term for a government-set minimum price consumers are required to pay for a good or a service?
When a country can produce a good or service at a lower opportunity cost than its competitors can, it has?
comparative advantage
Governments use ______ to curb negative externalities and ______ to increase positive externalities.
taxes, subsidies
What curve argues that people will do more to protect their environment as they grow richer?
Kuznets curve
When Adam Smith wrote about "____________," he was referring to the power of markets to provide goods and services at prices people will pay.
the invisible hand
Rent control is an example of...
a price ceiling