1. What are imports?
    goods or services bought from a foreign country.
  2. What is a comparative advantage?
    the ability of an individual or group to carry out an economic activity.
  3. What do tariffs and quotas do to the price of domestic products?
    increases welfare of domestic producers and cause dead weight loss.
  4. What are some of the other barriers to trade?
    Regulatory legislation and quotas, and inter-government.
  5. What are the beliefs of protectionists?
    The Eight Dynamics of Existence.
  6. What are the beliefs of free traders?
    that mankind was created by one God.
  7. What was the purpose of the WTO?
    deals with the rules of trade between nations at a global or near-global level.
  8. What is the foreign exchange rate?
    As of March 2009 it was 14.647.
  9. What determines the value of a country's currency?
    trade, political stability, banking systems and interest rates,  & manufacturing rates.
  10. What happens to American comsumers if the dollar fall in relation to foreign currencies?
    imports cost more.
  11. What is the purpose of the flexible exchange rates?
    that it allows the exchange rate to be determined by supply and demand.
  12. What are the characteristics of socialism?
    government ownership of resources other than labor and centralized economic decision-making.
  13. How did Stalin impact the Soviet economy?
    Stalin made it stagnant.
  14. What was perestroika?
    the policy of economic and governmental reform instituted by Mikhail Gorbachev.
  15. What are the four problems an economy faces when changing from a command economy to a market economy?
    disparity between rich and poor, increased corruption, shortages, and hoarding of money.
  16. What is capital-intensive?
    A business process or an industry that requires large amounts of money and other financial resources to produce a good or service.
  17. What are the five stages of economic development?
    1: Traditional Society, 2: Transitional Stage, 3: Take Off, 4: Drive to Maturity, 5: High Mass Consumption.
  18. What was the first commendation of the World Bank for both developing and industrialized nations?
    manufacturers and factories.
  19. How are developing countries used by the United States?
    US uses them through agreements that allow that country to sell their goods and improve their economy.
  20. Why are more developing nations successful at attracting foreign private investment?
    Because they are increasing Capital.
  21. How can the amount of pollution be reduced under a system of pollution permits?
    Having it handle the SO2 emissions reduction.
  22. When is a cost-benefit analysis useful?
    useful for prediction and forecasting.
  23. What was the impact of high gas prices in the 1970s?
    Costly federal taxes and regulations largely are to blame for high fuel prices.
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