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.