Question: Favorable balance of payments

Answer: Occurs when a nation receives more money in a year than it pays out, also called positive balance of payments

Question: Unfavorable balance of payments

Answer: The result of a country sending more money out than it brings in, also called negative balance if payments

Question: balance of trade

Answer: the difference between a country’s total exports and total imports

Question: balance of payments

Answer: the difference between the amount of money that comes into a country and the amount that goes out of it

Question: Absolute advantage

Answer: The ability of a country to produce a good at a lower cost than another country can.

Question: debt

Answer: Money owed

Question: Defecit

Answer: An excess of federal expenditures over federal revenues.

Question: Domestic Business

Answer: the making, buying, and selling of goods and services within a country.

Question: Embargo

Answer: an official ban on trade or other commercial activity with a particular country.

Question: exchange rate

Answer: the value of a currency in one country compared with the value in another