1. International Economics
Unit 4 Review Game:
International Economics

2. Review game rules:
First team to write the correct answer on their dry erase board and raise it in the air earns the point.
You can wager points by shooting a basket. If you miss, you lose the points you wagered off of your point total. A made basket adds the points you wagered to your point total.
All tie breakers are solved with rock-paper-scissors
First place= +6 Second place= +5
Third place= +4 Fourth place= +3

3. Ready… Set… Go!

4. _____________ ___________ is the study of how economies in different countries interact and affect one another

5. International economics

6. ________ advantage means a country can produce MORE of a product using less resources than another country.

7. Absolute

8. Favorable balance of trade is when a country __________ more than it ___________, bringing more money into the economy.

9. Exports; imports

10. _______ advantage means that a country can produce a product at a lower opportunity cost than another nation.

11. Comparative

12. Comparative advantage suggests that as long as two countries have different opportunity costs for producing similar goods, they can profit from _________________.

13. Specialization

14. If the United States goes to war with Russia and blocks all trade with them, that would be a trade ___________.

15. Embargo

16. Based on this data, an American would MOST likely visit ______________.

17. Japan

18. Based on this data, an American would LEAST likely travel to __________.

19. Great Britain

20. _________________ lowered trade barriers between the U. S
_________________ lowered trade barriers between the U.S., Canada, and Mexico.

21. NAFTA

22. Protectionists disagree with free trade deals because the want to protect _________ jobs.

23. domestic

24. If the value of a country’s exports exceeds the value of its imports, the country has a trade _________. If the value of a country’s exports fall short of the value of its imports, the country has a trade __________

25. Surplus; deficit

26. GDP will most likely increase as the trade deficit ______________.

27. Decreases

28. A/An __________ _____________ refers to the price of one country’s currency express in terms of another country’s currency.

29. Exchange Rate

30. As the price of a currency rises and falls relative to another currency, people who buy, sell, and earn in that currency will experience a change in how much of the other country’s currency they can buy. If the price of Chinese Yuan goes up, the value of the US Dollar goes down and the Chinese will be able to buy American goods at a __________ price.

31. Lower

32. If global demand for American goods increases, then the demand for US Dollars ____________, causing the value of the dollar to ___________.

33. Increases/Increases

34. In Year 1, a dollar cost. 49 pounds. In Year 2, a dollar cost
In Year 1, a dollar cost .49 pounds. In Year 2, a dollar cost .52 pounds. Since the dollar was more expensive for people holding British pounds in Year 2 than in Year 1, the dollar ____________ against the pound.

35. Appreciated

36. Quotas __________ domestic producers by limiting the number of foreign goods with which they must compete. The __________ is that consumers who want the imported good cannot get it once the quota is met no matter how high a price they are willing to pay.

37. Benefit; cost

38. If the U.S. imports $700 billion worth of goods from China, but only exports $300 billion worth of goods, then the U.S. will have a $ _______ ________. 

39. $400 deficit

40. To stimulate the economy, the Federal Reserve decides that the amount of money in circulation needs to ____________.

41. Increase

42. If the Federal Reserve decides to sell bonds, money supply goes ________ and interest rates go _________.

43. Down, UP

44. The IRS lays off thousands of employees every year after April 15, which is an example of __________ unemployment.

45. Season

46. If the government of Sri Lanka spends $13 million more this year than it receives in revenue, it will have a __________.

47. Budget deficit

48. When lenders make a loan, they agree to a price for the loan
When lenders make a loan, they agree to a price for the loan. When making loans at fixed rates, an unanticipated rise in price level by more than the lender anticipated hurts the lender since the money repaid will have ____________ purchasing power.

49. Less

50. The three main _______________ goals of most nations is to ensure growth, price stability, and full employment.

51. Macroeconomic

52. You will find high unemployment and low prices in the ____________.

53. Trough

54. When aggregate demand increased with supply staying constant, prices ____________.

55. Increased

56. The government might raise taxes while the Fed sells more U. S
The government might raise taxes while the Fed sells more U.S. securities to fight against _____________.

57. Inflation

58. When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached? ________________

59. Equilibrium

60. The following graph shows a _________ in _________.

61. Increase in Quantity Demanded

62. Equilibrium price from S1 to S2 went _______.

63. Down

64. Households, in the ________________ are the owners of the productive resources in the circular flow model. They sell their land, labor, capital, and entrepreneurship to businesses (firms) in exchange for income payments.

65. Factor Market

66. Consumers' willingness to replace a costly item with a less costly item is an example of the ____________ effect

67. Substitution

68. Bonus Question (10 POINTS)
Draw a graph that shows a shortage of a good or service. Be sure to label it properly!