economics stuff

If you were doing a presentation about "balance of trade," which journal entry would likely be the MOST helpful?

"Exports Take a Strong Hit in 3rd Quarter"

Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage?

A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.

This is the ability of a nation or region to produce more of a certain product than another country or region.

Absolute Advantage

The country of "Econoland" can use its resources to produce either 500 tons of crab or 200 tons of plywood. Its rival, "Arcadonia," is able to produce either 200 tons of crab or 100 tons of plywood.

Arcadonia should specialize in producing ply

This measures the flow of payments between one country and all other countries.

Balance of Payments

This is the difference in the monetary value of exports and imports for a country.

Balance of Trade

This is the ability of one country or region to specialize in producing a good more efficiently than another country for the purposes of trade.

Comparative Advantage

Who developed the theory of the "Iron Law of Wages," which stated that the constant pressure of population growth would cause wages to sink to subsistence level?

David Ricardo

This is any good transported from one country to another.

Export

In addition to creating jobs and obtaining scarce resources, why do countries trade with one another?

For comparative advantage

Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate that

Italy has an absolute advantage in wine production.

Based on the definition of specialization and comparative advantage, what area in the world could be said to have a comparative advantage in oil production?

Middle Eastern countries

What is one way that a negative trade balance can be converted into a $0 balance of payments?

The imposition of tariffs

This is general name for the voluntary exchange of goods and or services.

Trade

a condition in international trade when the value of the imports into a nation is greater than the value of its exports

Trade Deficit

This occurs when a country exports more than it imports

Trade Surplus

This occurs when a country exports more than it imports.

Trade Surplus

This is a situation that exists when a country imports more than it exports.

Unfavorable Balance of Trade

Trade between nations can be mutually beneficial if one country has

a comparative advantage.

The difference between money paid to, and received from, other nations in trade is the

balance of payments.

You and two of your friends decide to open an e-business selling a product online. Instead of all three partners creating the product, you each specialize in one aspect of the business. This is MOST reflects the concept of

comparative advantage.

While the balance of trade is the difference between the monetary value of exports and imports, the balance of payments

counts goods, services, and financial transactions between countries.

A trade surplus is generally known as a

positive balance of trade.

Countries around the world specialize production, and trade with other countries based upon

the comparative advantage in production.