Definitions
Based on who makes more
What is absolute advantage?
this country has the comparative advantage for shirts Us. Canada
Shirts 15, 9
Soda 40, 38
What is U.S.?
What is Free Trade?
Trade without restrictions
Who selects the board of governors?
The President
this country has the absolute advantage in gummy bears gummy bears(lbs) faygo root beer(liters) Guatemala 80 40 Canada 70 100
What is Guatemala?
this country has the comparative advantage in chocolate chocolate(lbs) clogs(pairs)
Germany 600, 95 Netherlands 350, 275
What is Germany?
What does the WTO do?
Regulates the international rules of trade
How long does a Recession usually last?
6 months
What are the factors of production?
Land, Labor, Capital, Entrepreneurship
this country has the comparative advantage in gummy bears gummy bears(lbs) faygo root beer(liters)
Canada 70, 100 Guatemala 80, 40
What is Canada?
What does the IMF do?
Promotes economic stability and helps or lends to countries in need.
How does national debt build?
Consecutive years of budget deficits
Is the rate at which one currency will be exchanged for another currency.
What is Exchange Rate.
This country has the absolute advantage for toothbrush's
Ireland Scotland
dog sweaters 30 20
toothbrush's 100 80
What is Ireland?
Argentina has the comparative advantage in this product
Flags, Toilet Paper
Argentina 40, 50 Puerto Rico 50, 40
What is toilet paper?
What does the World bank do?
Primarily designed to assist developing nations in growing economically.
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
High Inflation
branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole
What is macroeconomics?
This country has the absolute advantage for tomatoes. Tomatoes, Pickles
U.S. 80 90 Mexico 120 30
What is Mexico?
This country has the comparative advantage for shirts books, shirts
U.S. 60, 30 Guatemala 100, 10
What is U.S.?
What are the five forms of trade barriers?
Tariffs, import quotas, embargoes, buy-national regulations, and exchange controls.
What are the three tools of monetary policy?