| A | B |
|---|
| Labour-intensive goods | Products that require a relatively large amount of labour to produce |
| Land-intensive goods | Products that require a relatively large amount of land to produce |
| Capital-intensive goods | Products that require a relatively large amount of capital to produce |
| Absolute advantage | When a region or nation can produce more of both Good X and Y with less resources compared to other regions or countries |
| Comparative advantage | When a region or nation can produce a good at a lower domestic opportunity cost compared to a potential trading partner |
| Terms of trade | The rate at which units of one product can be exchanged for units of another product |
| Revenue tariff | A tariff designed to produce income for the federal government |
| Protective tariff | A tariff designed to shield domestic producers of a good from the competition of foreign producers. |
| Import quota | Limit imposed by a nation on the quantity of a good that may be imported |
| Dumping | The sale in a foreign country of products below cost or below the prices charged at home |
