International Economics flashcards

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What is meant by “Absolute advantage” in this lesson?Comparative advantage: Absolute advantage means producing more output with a given input or using fewer inputs for a given output.
What is meant by “Comparative advantage” in this lesson?Comparative advantage: Comparative advantage means producing at a lower opportunity cost.
What is meant by “Specialization” in this lesson?Comparative advantage: Specialization concentrates production on selected activities.
What is meant by “Gains from trade” in this lesson?Comparative advantage: Trade can expand feasible consumption when exchange terms are favorable and assumptions hold.
What is meant by “Terms of trade” in this lesson?Comparative advantage: Terms of trade specify the exchange ratio between traded products.
What is meant by “Distribution of trade gains” in this lesson?Comparative advantage: Overall gains need not benefit every worker, firm, or region equally.
What is meant by “Exchange rate” in this lesson?Trade and exchange rates: An exchange rate is the price of one currency in terms of another.
What is meant by “Appreciation” in this lesson?Trade and exchange rates: A currency appreciates when its value rises relative to another currency.
What is meant by “Depreciation” in this lesson?Trade and exchange rates: A currency depreciates when its value falls relative to another currency.
What is meant by “Tariff” in this lesson?Trade and exchange rates: A tariff is a tax on imported goods under applicable rules.
What is meant by “Import quota” in this lesson?Trade and exchange rates: An import quota limits the quantity allowed under a defined policy.
What is meant by “Trade balance” in this lesson?Trade and exchange rates: A trade balance compares exports and imports under a stated accounting scope.
What is meant by “Counterfactual” in this lesson?Analyzing an economic policy claim: A counterfactual describes what would have happened without the action being evaluated.
What is meant by “Correlation versus causation” in this lesson?Analyzing an economic policy claim: Co-movement alone does not establish that one factor caused another.
What is meant by “Policy mechanism” in this lesson?Analyzing an economic policy claim: A mechanism explains the pathway from an action to an outcome.
What is meant by “Distributional analysis” in this lesson?Analyzing an economic policy claim: Distributional analysis examines how effects differ across groups.
What is meant by “Assumption transparency” in this lesson?Analyzing an economic policy claim: Transparency makes model choices and conditions inspectable.
What is meant by “Evidence qualification” in this lesson?Analyzing an economic policy claim: Qualification limits a conclusion to what its evidence actually supports.