Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
Capitol Account |
A category of balance of payments transactions that measures flows of financial assets |
|
|
Flexible Exchange Rate |
|
|
|
Autarky |
Zero Trade |
|
|
Tariff |
A tax on importing goods |
|
|
Dumping |
Selling a Good or service below the price charged in the home market or at a price below its cost of production |
|
|
Import Quota |
A government imposed restriction on the quantity of a specific good that another country is allowed to ell in the united states. Quotas are restrictions on imports. Usually applied to one or several specific countries |
|
|
Infant Industry Argument |
The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started. |
|
|
Current Account |
A category of balance of payments transactions that measure the exchange of merchandise, services, and unilateral transfers. |
|
|
Balance of Payments |
A system of accounts that measures transactions of goods, services, income, and financial assets between domestic households, businesses, and governments and residents of the rest of the world during a specific time period. |
|
|
Accounting Profit |
Total Revenues - total explicit costs |
|
|
Economic Profit |
Economic profit = total revenues-total opportunity cost of all inputs used Economic Profit=total revenues - (explicit+implicit costs) |
|
|
Implicit costs |
Expenses that managers do not have to pay out of pocket and hence normally do not explicitly calculate, such as the opportunity cost of factors of production that are owned. |
|
|
Demand Elasticity Equations |
(Change in quantity/ (Sum of quntities/2) Divided by (Change in price / (sum of prices/2) |
|
|
Herfindahl Index |
sum of the squared percentages of sales of all firms in industry |
|
|
Balance of trade |
Difference between exports and imports of physical goods |
