AP Flashcards
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| 6670288131 | Absolute advantage | The ability to produce more of a given product using a given amount of resource. | 0 | |
| 6670288132 | Comparative advantage | The ability to produce a product most efficiently given all the other products that could be produced. | 1 | |
| 6670288133 | Law of comparative advantage | The idea that a nation is better off when it produces goods and service for which it has a comparative advantage. | 2 | |
| 6670288134 | Import quota | A limit on the amount of a good that can be imported. | 3 | |
| 6670288135 | Protectionism | The use of trade barriers to protect a nations industries from foreign competition. | 4 | |
| 6670288136 | Wto | A worldwide organization whose goal is freer global trade and lower tariffs. | 5 | |
| 6670288137 | Imf | Organization formed to stabialize international exchange rate and facilitate development. | 6 | |
| 6670288138 | Foreign exchange market | The banks and other financial institutions that facilitate the buying and selling of foreign currencies. | 7 | |
| 6670288139 | Flexible exchange system | A currency system that allows the exchange rate to be determined by supply and demand. | 8 | |
| 6670288140 | Balance of trade | The relationship between a nations imports and exports. | 9 |