International Economics Exam Study Set 100% Correct Answers

International Economics Exam Study Set 100% Correct Answers absolute advantage *Ans* Where a country is able to produce more output than other countries using the same input of factors of production. administrative barriers (in the context of trade) *Ans* Any administrative requirement that might prevent or reduce the amount of imports. anti-dumping *Ans* Legislation to protect an economy against the importing of a good at a price below its unit cost of production. appreciation *Ans* An increase in the value of a country's currency in a floating exchange rate system. balance of payments *Ans* The accounting record of all transactions (debits and credits) between the households, firms and government of one country, and the rest of the world. barrier to trade *Ans* Anything which prevents free trade between two countries, e.g. tariffs, quotas. common market *Ans* A customs union with common policies on product regulation, and free movement of goods, services, capital and labour. current account (of the balance of payments) *Ans* A measure of the international flow of funds from trade in goods and services, plus net investment income flows (profit, interest and dividends) and net transfers of money (foreign aid, grants and remittances). current account deficit *Ans* Where revenue from the exports of goods and services and income flows is less than the expenditure on the import of goods and services and income flows in a given year. current account surplus *Ans* Where the revenue from the export of goods and services and income flows is greater than the expenditure on the import of goods and services and income flows in a given year. customs union *Ans* An agreement made between countries, where the countries agree to work towards free trade among themselves and they als