Econ Test #6

  1. What does both imports and exports include?
    Goods and Services
  2. The goods and services that countries buy from other
    countries are called what?
  3. The goods and services that a country sales to people in
    other countries are called?
  4. U.S. exports and imports are mainly what?
    Manufactured goods
  5. The single largest trading partner with the U.S. is whom?
  6. When an American goes to study in a foreign university
    what is that student doing?
    Importing services to the U.S.
  7. If a French student enrolls and pays tuition at Harvard
    what is this called?
    Increase in U.S. exports
  8. An example of a service imported by the U.S. is what?
    • An American traveling on Air France to the France tennis
    • open.
  9. What is net exports?
    The value of exports minus the value of imports.
  10. When the U.S. exports are negative, U.S. exports
    are than U.S. imports and the U.S.
    is foreigners.
    Smaller, Borrowing from
  11. What is opportunity cost measured by?
    The slope of the production possibility frontier curve.
  12. The PPF for a country slopes , which
    reflects .
    Downward, opportunity cost
  13. A country has a comparative advantage in producing a
    good if in comparison to any other country it can produce that good how?
    At a lower opportunity cost.
  14. When trade between two countries occurs what is the
    • Both countries gain because both can consume both than
    • before.
  15. The gain from trade enables a country to do what?
    Consume outside its PPF curve.
  16. Nations can increase consumption of all goods if they do
    Produce the goods in which they have a comparative advantage and trade with other nations.
  17. The U.S. both exports and imports cars why?
    • Diversity of taste allows other countries to demand U.S.
    • cars while U.S. consumers demand foreign cars.
  18. Economies of scale exist if an increase in production
    does what?
    Average total cost
  19. What is a tariff?
    Tax imported goods or services
  20. What is the purpose of the tariff?
    Discourage imports
  21. What is any action other that a tariff, that restricts
    Non-tariff barrier
  22. During the great depression in the 30’s, what was the
    average tariff level?
  23. Today the U.S. has a tariff rate of what?
  24. An important international trade agreement signed after
    WWII is called what?
    General Agreement on Tariffs and Trade
  25. What does the WTO stand for?
    World Trade Organization
  26. The U.S. has a free trade agreement with whom?
    Canada and Mexico
  27. Under which agreement will barriers to international
    trade between the U.S., Canada, and Mexico be virtually eliminated after a 15
    year phasing end period which began in 1994?
    North American Free Trade Agreement
  28. What is a quota?
    Quantitative restriction on a particular good
  29. The most efficient way to maintain the output of an
    industry necessary for a national defense is what?
  30. What is dumping?
    Occurs when a foreign firm sales its exports at a lower price than cost to produce it.
Card Set
Econ Test #6
Econ Test #6