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Econ Test 2
Test 2
11
Economics
Undergraduate 4
10/03/2014

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Cards

Term
A tariff will
Definition
Generate tax revenue
Create DWL
Decrease CS
Increase PS
Term
Absolute Advantage
Definition
the ability of a party, an individual, firm or country to PRODUCE MORE OF A GOOD OR SERVICE THAN COMPETITORS, using the same amount of resources.
Term
Comparative Advantage
Definition
the ability of a party to produce a particular good or service at a LOWER OPPORTUNITY COST THAN ANOTHER.
Term
World Price
Definition
price of a good that prevails in the world market for that good.
Term
Is you open up the market and as a result you have a net gain then
Definition
Society is better off
Term
What can producers do to slow down imports?
Definition
Push for trade restrictions
Tariffs on imported goods.
Term
Tariff
Definition
A tax on imported units
Term
Import Quota
Definition
a restriction on the quantity of a good imported during a specific time period.
Term
Demand Curve represents
Definition
MSB (Marginal Social Benefit)
Term
Pworld
Definition
MS Cost
Term
Cost is represented by the
Definition
supply curve
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