Civics Chapter 23 Lesson 1 Flashcard

Front

What is a "tariff"?

Back

A tax on an imported good

Front

What is an "exchange rate"?

Back

The value of a nation's money compared to other nations' money

Front

What does "quota" mean in international trade?

Back

A limit on the amount of foreign goods imported

Front

What is "comparative advantage"?

Back

The ability to produce something at a lower opportunity cost

Front

Why does China have a comparative advantage in making goods that need lots of labor?

Back

Low labor costs

Front

What is the danger of a single resource economy?

Back

Economic instability if the product price falls

Front

What are the two most common kinds of trade barriers?

Back

Tariffs and quotas

Front

What is a tariff?

Back

A tax on imports

Front

What is the main benefit of the European Union (EU) using the same currency?

Back

It makes trade easier.

Front

How can heavy imports affect a nation's currency?

Back

Decrease its value