Intl Econ Exam 1

Front 1

arbitrage

Back 1

buying something in one market and reselling the same thing in another market to profit from a price difference

Front 2

one-dollar, one-vote metric

Back 2

each dollar of gain or loss is valued equally, regardless of who experiences it

Front 3

ppc

Back 3

shows all combos of amounts of different products that an economy can produce with full employment of its resources and maximum feasible productivity of these resources

Front 4

increasing marginal costs

Back 4

as one industry expands at the expense of others, increasing amounts of the other products must be given up to get each extra unit of the expanding industry's product

Front 5

what does the ppc look like with increasing marginal costs?

Back 5

it is "bowed out"

Front 6

indifference curve

Back 6

shows the various combinations of consumption quantities that lead to the same level of well-being or happiness

Front 7

terms of trade

Back 7

the price the country receives from foreign buyers for its exports, relative to the price that the country pays foreign sellers for its imports

Front 8

Heckscher-Ohlin Theory

Back 8

predicts that a country exports the products that use its relatively abundant factors intensively and imports the products using its relatively scarce factors intensively