Chapter 2 Our Global Economy

Front

This occurs when a country produces less goods and services than what it consumes.

Back

Specialization

Front

Producing a product at a lower opportunity cost (who sacrifices the least).

Back

Comparative Advantage

Front

Producing a product quicker and more efficient than another country.

Back

Absolute Advantage

Front

Unrestricted purchase of goods and services between countries.

Back

Free Trade

Front

Goods and services sold to another country

Back

Export

Front

Goods and services bought from another country

Back

Import

Front

Who are the United States most important trading partners?

Back

Canada, China, Mexico, and Japan

Front

Tax on an imported good.

Back

Tariff

Front

Limit on the amount of a foreign good that can be imported.

Back

Quota

Front

A buyer's willingness and ability to pay a price for a specific quantity of a good or service.

Back

demand