| A | B |
|---|
| Goods & Services sold to other countries are called | exports |
| When a country’s total annual imports exceed its total annual exports, it is said to have a | trade deficit |
| Purchases from other countries are called: | imports |
| Industrial countries export a wider variety of products than do | developing countries |
| What is WTO? | World Trade Organization |
| A country/business is said to have __________ in producing whichever good has the lowest opportunity cost. | comparative advantage |
| When a country’s total annual exports exceed its total annual imports, it is said to have a _____________. | trade surplus |
| Why do nations choose to trade with other nations? | individuals & firms produce more than can be consumed at home |
| Why do nations choose to trade with other nations? | Individuals & firms sell goods or services to other countries at a higher price than they can obtain domestically |
| What is one reason governments would NOT want to alter international trade? | Tariffs provide a significant source of government deficits |
| Quantitative restrictions on the import of certain goods & services | quotas |
| Products which are not produced for immediate consumption; rather they are objects that are used to produce other goods & services | capital goods |
| In economic terms, opportunity cost is the amount of good or service that is sacrificed or given up in order to produce another good or service. | opportunity costs |
| How have governments traditionally tried to manage trade? | By restricting imports |
| What is the largest category of goods exported by the US? | capital goods |
| An agent that sells goods in large quantities to retailers, who then sell those goods to the general public | whosesaler |
| Why do countries import goods/services from other countries? | Goods /services either essential to economic well-being or that consumers desire are not naturally available or cannot be produced at home |
| A list of taxes or customs duties payable on imports or exports | tariffs |
| A person or company has an absolute advantage when it can best perform a task or produce a product. | absolute advantage |
| Why do countries import goods/services from other countries? | Goods/services can be produced more inexpensively or efficiently by other countries & therefore sold at lower prices |
