Economics DBQ – Flashcards

Free trade is defined as international trade (which involves the exchange of goods and services between two countries) that takes place without any barriers such as tariffs, quotas, or subsidies.

Sustainable development is defined as the development needed to meet the needs of the present generation without compromising the ability of future generations to meet their own needs.

A tariff is a duty (tax) that is placed upon imports to protect domestic industries from foreign competition and to raise revenue for the government.

A Free Trade Agreement (FDA) is an agreement made between countries where the countries agree to trade freely among themselves but are able to trade with countries outside the FDA in whatever way they want.

Economic growth is defined as the growth of real output in an economy over time. It is usually measured as growth in real Gross Domestic Product (real GDP).

Economic development is a broad concept involving improvements in standards of living, reduction in poverty, and improved health and education.

Comparative advantage is where a country is able to produce a good at a lower opportunity cost of resources than another country.

The theory of practice of shielding a country's domestic industries from foreign competition by using barriers such as tariffs, quotas, or subsidies.

Dumping, the selling by a country of large quantities of a commodity, at a price lower than its production cost, in another country, is another possible argument to refuse an FDA.