POL 203 Final Exam Study Guide Questions with Complete Solutions The value of a state's exports relative to its imports. - Correct Answers ✅Balance of Trade The flow of goods and services across national boundaries unimpeded by tariffs or other restrictions; in principle, free trade was a key aspect of Britain's policy after 1846 and of U.S policy after 1945. - Correct Answers ✅Free Trade A body of policies that emphasize domestic control of the economy, labor, and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labor, goods and capital. - Correct Answers ✅Economic Nationalism An economic theory and a political ideology opposed to free trade; it shares with realism the belief that each state must protect its own interests without seeking mutual gains through international organizations. - Correct Answers ✅Mercantalism The principle that says states should specialize in trading goods that they produce with the greatest relative efficiency and at the lowest relative cost (relative, that is, to other goods produced by the same state). - Correct Answers ✅Comparative Advantage 1 / 3
POL 203 Final Exam Study Guide Questions with Complete Solutions Refers to the ability of a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of resources. - Correct Answers ✅Absolute Advantage A monopoly exists when a specific person or enterprises the only supplier of a particular commodity (this contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry).Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. - Correct Answers ✅Monopoly A market form in which a market or industry is dominated by a small number of sellers. - Correct Answers ✅Oligopoly An association of producers or consumers (or both) of a certain product, formed for the purpose of manipulating its price on the world market. - Correct Answers ✅Cartel A policy of self-reliance, avoiding or minimizing trade and trying to produce everything one needs by oneself. - Correct Answers ✅Autarchy 2 / 3
POL 203 Final Exam Study Guide Questions with Complete Solutions The strategies by which a government works actively with industries to promote their growth and tailor trade policy to their needs. - Correct Answers ✅Industrial Policy A positive balance is known as a trade surplus if it consists of exporting more than is imported. - Correct Answers ✅Trade Surplus The sale of products in foreign markets at prices below the minimum level necessary to make a profit. - Correct Answers ✅Dumping A duty or tax levied on certain types of imports (usually a percentage of their value) as they enter a country. - Correct Answers ✅Tariff Forms of restricting imports other than tariffs, such as quotas (ceilings on how many goods of a certain kind can be imported). - Correct Answers ✅Non-Tariff Barriers A restriction on imports - Correct Answers ✅Quota A subsidy is a form of financial or in kind support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. - Correct Answers ✅Subsidy
- / 3