AP Macroeconomics: International Trade Flashcards

9952940757	Consumption possibility frontier	The various bundles of goods that a country can obtain by taking advantage of international trade.	0
9952956991	Official reserves	Foreign currencies owned by the central bank of a nation.	1
9953014508	Balance of payments deficit	Shortfall that occurs when more money flows out of a nation than into that nation. Current account balance + Capital account balance < 0	2
9953017148	Balance of payments surplus	Overage that occurs when more money flows into a nation than out of that nation. Current account balance + Capital account balance > 0	3
9953020062	Exchange rate	The measure of how much one currency is worth in relation to another.	4
9953021234	Appreciation	An increase in the value of a currency as measured by the amount of foreign currency it can buy.	5
9953022415	Depreciation	A decrease or loss in the value of a currency compared to foreign currency.	6
9953031227	Determinants of appreciation or depreciation	1. Consumer tastes 2. Relative incomes 3. Relative inflation 4. Speculation	7
9953050222	Revenue tariff	Tax on imports that are not produced in the domestic market. This is used primarily to raise government revenue without restricting imports.	8
9953054037	Protective tariff	A tax on imported goods that are produced in the domestic market and that raises the price of foreign imports so people will buy domestic goods.	9
9953066372	Import quota	A limit on the amount of a good that can be imported into the domestic market.	10