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KNOWLEDGE RATINGS
How much do you know about these words? Place an X in the appropriate column indicating your knowledge of each
word. If you know the word then attempt writing a definition for it. If you do not look it up.
TERM
CAN
DEFINE
HAVE
SEEN/HEARD
?
DEFINITION
Export
To sell goods to other countries; or a good produced in
one country, then sold to another
Import
A good purchased from one country by another
Comparative
Advantage
Tariff
Quota
The ability of a country to produce a good at a lower
opportunity cost
A customs duty; a tax on an imported good
A limit on the amount of foreign goods imported into a
country
Policy of reduced trade barriers
Organization of European nations whose goal is to
encourage economic integration into a single market in
Europe.
Trade agreement designed to reduce tariff barriers
between Mexico, Canada, and the United States
Free Trade
European Union
North American Free
Trade Agreement
(NAFTA)
World Trade
Organization (WTO)
Exchange Rate
Balance of Trade
Trade Deficit
Trade Surplus
Market Economy
Per Capita GDP
Command Economy
Socialism
Communism
Mixed Economy
Traditional Economy
Developing Country
An international body that oversees trade among nations
The price of one nation’s currency in terms of another
nation’s currency
The difference between the value of a nation’s exports
and its imports
Situation in which the value of the products imported by a
country exceeds the value of its exports
Situation in which the value of the products exported by a
country exceeds the value of its imports
System in which individuals own the factors of production
and make economic decisions through free interactions
Gross Domestic Product per person
An economic system in which the major economic
decisions are made by the central government
Economic system in which government owns some
factors of production
Economic system in which the central government directs
all major economic decisions
System combining characteristics of more than one type
of economy
An economic system in which the decisions of what, how,
and for whom to produce are based on custom or habit.
A country whose average per capita income is only a
fraction of that in more industrialized countries