Economics 1143 checkup A
tariff
A ___________________________forces producers to become more efficient
absolute advantage,production
A nation that can produce a good at a lower cost than another has an __________________________in the ________________________of that good
domestic
A nationalistic appeal encourages consumers to purchase _____________________goods
greatest,least
All nations benefit if each produces and exports goods in which it has the _______________________relative efficiency and imports in which it has the ________________relative efficiency
free
Almost no nation allows completely ___________________trade
increases
Free trade __________________________total output
encourages
Free trade ____________________international competition
everyone
Free trade benefits __________________
peace
Free trade encourages ____________________
comparative advantage,producing,other good
If one nation has a comparative advantage in producing one good then the other nation has a _________________________ __________________________in ____________________the _______________ _________________
income,trade restrictions
International trade decreased during the Great Depression because of decreased _____________________and increased _________________________________
increased
International trade has gradually _________________________since it began
free trade
Most economists favor _________________________
greatest
Nations with the ________________________economies of scale realize more gains
domestic
Restrictions protect _________________workers
domestic
Restrictions protect infant ______________industries
security
Restrictions protect national ________________________
revenue
Restrictions provide increased ______________________
price
Tariffs usually result in a ___________________increase for both domestic and imported goods
World Trade Organization
The ____________________________________________is commonly called the WTO
European Union
The _________________________________is a European free-trade association that removed all trade barriers among its member nations in 1992
comparative advantage
The principle of ______________________________states that as long as the relative opportunity costs of producing goods differ among nations, there are potential gains from trade, even if one nation has an absolute advantage in the production of everything
about the same as
The value of a nation's exports is generally ________________________________the value of its imports
beneficial
Trade restrictions are seldom ____________________
citizens
When there is more competition, _________________________receive the gains
smaller,trade,opportunities,relative gains,nation
When trade occurs between a large and a small nation, the ________________________nation receives more benefit from the trade because _______________________provides more ____________________________and therefore more ____________________ _______________________for that ___________________________
Regulatory trade restrictions
________________________________________are procedural rules that limit imports
Smaller
_____________________________________nations tend to receive a larger percentage of the gains
Embargoes
__________________________are complete restrictions on imports or exports
Tariffs
_______________________are the most common trade restrictions
Embargoes
_______________________are usually established for political reasons
Comparative,absolute
______________________advantage is more common than __________________advantage
Tariffs
_____________________are taxes placed on traded goods
Quotas
_________________limit the quantity of imported goods
most-favored nation
charged as low a tariff on exports as any other nation
common market
free-trade association among nations
WTO
international organization dedicated to eliminating trade barriers
euro
note replacing national money in EMU nations
dumping
selling a good below cost in a foreign country