Unit One: Global Economics Vocabulary List

The definition of 'Trade Off' is:

• A situation where one must choose between two or more equally desirable options.

• A situation where one must sacrifice one thing to obtain another.

• A situation where there is no need to compromise.

• A situation where all options are equally beneficial.

'Comparative Advantage' means:

• The ability of a country to produce a good at a lower opportunity cost than another country.

• The ability of a country to produce more of a good than another country using the same amount of resources.

• The ability of a country to produce a good using fewer resources than another country.

• The ability of a country to produce a good at a higher quality than another country.

Explain the term 'Embargo'.

• An embargo is a government order that restricts commerce or exchange with a specified country or the exchange of specific goods.

• An embargo is a type of tax imposed on imported goods.

• An embargo is a trade agreement between two countries to reduce tariffs.

• An embargo is a financial aid given to countries in need.

What is a 'Sanction' in global economics?

• A type of economic policy

• A form of international trade agreement

• A penalty imposed by one country on another

• A method of currency exchange

A 'Tariff' is defined as:

• A tax imposed on imported goods and services

• A type of government subsidy

• A form of trade agreement

• A domestic sales tax

What is a 'Quota' in trade?

• A limit on the amount of goods that can be imported or exported

• A tax imposed on imported goods

• A subsidy given to domestic producers

• A trade agreement between two countries

'Import' means:

• To send goods to another country

• To bring goods into a country

• To create goods within a country

• To destroy goods

The term 'Export' refers to:

• Importing goods from other countries

• Selling goods to other countries

• Producing goods for domestic use

• Storing goods for future use

A 'Trade Deficit' is:

• when a country's imports exceed its exports

• when a country's exports exceed its imports

• when a country's imports and exports are equal

• when a country has no trade with other countries

A 'Trade Surplus' is defined as:

• when a country's exports exceed its imports

• when a country's imports exceed its exports

• when a country's exports equal its imports

• when a country has no trade with other countries