Vocabulary
A government action that restricts trade
What is Trade Barriers
Every economic system must answer three basic economic questions.
What is what to produce, how to produce, and for whom to produce.
A country places a tariff on an imported good. TWO statements that describe what this tariff does
What is the exporting country collects the tax revenue.
The price of the imported good rises for consumers in the importing country.
Taco Bell specializes in ...
What is Tacos
taking raw materials from the earth (mining, drilling).
What is Extraction
The Democratic Republic of the Congo holds a large percentage of the natural resources required to produce electric batteries, but receives a very small percentage of the finished electric-vehicle battery profit. TWO statements that best explain this pattern are...
What is the DRC extracts raw minerals but does not own the factories that refine and manufacture them.
Most of a battery’s value is added during processing and manufacturing, which happen outside the DRC.
An Tariff is
What is a tax on all trade or imported goods
Burger King Specializes in ...
What is Burgers
the education, skills, and training that workers have.
What is Human Capital
GDP pe capita is ...
What is the average income per person in a country; a measure of wealth.
A limit on imported goods
What is Quota
Specialization focuses on multiple good and services and country provides
What is False
trade that benefits both parties so that both countries are better off.
What is Voluntary Trade
A command economy has these views on production
Government controls all
One country announces that it will halt all trade with a second country as a political punishment. Which trade barrier is this?
What is Embargo
Quotas stop/ ban all trade with a country for political reasons.
What is False
the path a product takes from raw materials to finished good, often crossing multiple countries.
What is Supply Chain
A mixed economy is
What is most countries economic system. Controlled partly by businesses and consumers and partly by government
Trade barriers usually leave both countries worse off. Why do governments still impose trade barriers?
What is To protect specific domestic industries and the jobs in them, even at a cost to consumers.
A phone costs $800 to import. The government places a 25% tariff on ALL imported goods. What is most likely to happen to the final price of the good for buyers?
What is The final price increases