Term
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Definition
| tax imposed by a gov on imports |
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Definition
| goods and services bought domestically but produced in other countries |
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Definition
| goods and services produced domestically but sold to other countries |
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Definition
| the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers |
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Term
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Definition
| the highest valued alternative that must be given up to engage in an activity |
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Definition
| the ability to produce more of a good ro service than competitors when using the same amount of resources |
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Definition
| a situation in which a country does not trade with other countries |
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Definition
| the ratio at which a country can trade its exports for imports from other countries |
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Definition
| reductions in a firm's costs that result from an expansion in the size of an industry |
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Definition
| trade between countries that is without government restrictions |
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Definition
| a numerical limit imposed by te government on the quantity of a good that can be imported into a country |
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Term
| voluntary export restraint |
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Definition
| an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country |
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Term
| World Trade Organization (WTO) |
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Definition
| an international organization that enforces international trade agreements |
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Term
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Definition
| the process of countries becoming more open to foreign trade and investments |
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Definition
| the use of trade barriers to shield domestic firms from foreign competition |
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Definition
| selling a product for a price below its cost of production |
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Term
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Definition
| the enjoying or satisfaction people receive from consuming goods and services |
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Term
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Definition
the change in total utility a person receives from consuming one additional unit of a good or service |
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Term
| law of diminishing marginal utility |
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Definition
| consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time |
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Term
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Definition
| the limited amount of income available to consumers to spend on goods and services |
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Term
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Definition
| the change in the quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding all other factors constant |
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Term
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Definition
| the change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power |
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Term
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Definition
| network externalities exist when the usefulness of a product increases with the number of consumers who use it |
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Term
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Definition
| the study of situations in which people act in ways that are not economically rational |
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Term
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Definition
| the highest-valued alternative that must be given up to engage in an activity |
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Term
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Definition
| the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it |
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Term
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Definition
| a cost that has already been paid and cannot be recovered |
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