Vocabulary
Exchange of goods and services for money is called...
Trade
Producing the most of a product is called
Absolute Advantage
USA places a 200 million limit on avocados being brought into the country. This is an example of a
Quota
If demand increase then the currency will
Appreciate
Goods that are brought into the country
Imports
In Remitopia they produce 500 muffins. In Oliverland they produce 800 muffins. Who has the absolute advantage?
Oliverland
America stops all trade with any country containing an A in their name. Which trade barrier is this an example of?
Embargo
If a country's currency appreciates then their exports
decrease
What is the largest ocean in the world?
Pacific Ocean
A good or service produced in the home country and sold in another country.
Exports
Producing at the lower opportunity cost, using less resources.
Comparative Advantage
A tax on imported goods that raises the price of imports so people will buy domestic goods
Protective Tariff
What happens in one currency if the other depreciates
The currency will appreciate
What national holiday is celebrated in all countries?
New Years Eve
People who believe in few to no trade barriers are called...
Free Traders
In Theaville they produce 1,000 airplanes and 200 cars. In Dahliatown they produce 500 airplanes and 300 cars. Who has the absolute advantage in cars? Who has the absolute advantage in airplanes?
Theaville-airplanes
Dahliatown- cars
If a government applies a revenue tariff then that will ___________ government funds
Increase
One U.S dollar is worth .3 Kuwait dinars. Which currency is stronger?
Kuwait Dinars
What is the largest mammal in the world?
Blue Whale
People who want to shelter domestic producers from foreign competition with tariffs, quotas, and other trade barriers are known as
Trade protectionists
In Velaris for every 1 chocolate pie being produced they could have made 2 apple pies. In Genovia for every 1 chocolate pie being made they could have made 4 apple pies. Who has the comparative advantage?
Velaris
A protective tariff was placed on all imported chocolate, this will _____________ the quantity of candy imported and ____________ the price of imported chocolate.
Decrease, Increase
What will happen to the Euro when Americans demand less of their products? What happens to their exports & imports?
Euro will Depreciate and their exports will increase, imports decrease
What kind of animal is Squidward from Spongebob Squarepants?
Despite his name, he’s actually an octopus.
Increasing productivity, better technology or human capital will lead to this
Economic Growth
Being the best at something.
Specialization
Without protective tariffs, what happens to domestic industries?
They will not be able to sell as much and will produce less.
What happens to the PESO when Americans want to invest more in their economy? What happens to their imports?
Peso will appreciate and their imports will increase
Which big cat is the largest?
Tiger