Economics Review

A product of the Earth that people use to meet their needs is a good service natural resource free enterprise The number limit on how many items of a particular product can be imported from a particular country is the demand quota supply tariff The economic system of communist countries is most closely related to which of the following? command economy market economy traditional economy mixed economy Which of the following is NOT one of the basic questions that all economic systems must answer? What to produce? How to produce? How much to produce? For whom to produce? A market economy is very different from a command economic system or a traditional economic system. Which of the following is found in a market economy? free labor competition between businesses government control of businesses government control of agriculture Which is an example of human capital? THINK HUMANS! WHAT MAKES HUMANS BETTER WORKERS? education roads factories machinery Who owns the resources and makes economic decisions in a command economy? individuals private businesses no one the government How are goods and services exchanged in a traditional economy? through prices and wage through government regulation through bartering through shortages and surpluses Match the trade barrier terms Physical trade barrier mountain Complete ban on trade between countries embargo A tax on imported goods tariff Restriction on the amount of items you can import into a country quota type of money used in a country currency money from one country converted into the currency of another country currency exchange Which of the following best describes a market system? The government provides services such as televisions and phones A person can start any legal business and charge any price The government provides food and housing to all workers Businesses are owned by the government Why is it important for a country to invest in human capital? A country needs money in order to pay its worker Workers enjoy getting extra training and job opportunities Businesses cannot do all the training needed by workers to be successful A country's economy is more successful when workers have good education and healthcare. When a government decides to increase a tariff, it increases the amount of a tax placed upon people's income imported goods renewable resources people's property What qualities and characteristics allow for entrepreneurship? Allows entrepreneuship market economy mixed economy free enterprise someone willing to take risks someone with an innovative idea someone who invests their own time and money into a business competition between businesses education Does not support entrepreneurship total government control command economy lazy individual someone who is scared to take risks Most democratic nations have _ economies. traditional market command mixed The economic system where people follow the occupation of their ancestors command market mixed traditional What is a LITERATE adult LEAST likely to have? good healthcare a high-paying job uneducated children access to modern technology What is the main reason for people to exchange currency? to buy and sell goods and services with other countries to use American dollars to trade to make more money by trading currencies to have foreign money Which of the following would be the MOST helpful to improving a country's standard of living? decreasing the literacy rate increasing the literacy rate reducing the number of factory jobs creating more low-paying jobs Which is an example of a company investing in capital goods? providing healthcare for its workers providing classes for workers to learn new skills keeping an old machine to see if it will last longer investing in the latest technology to build products more efficiently What is the relationship between GDP, literacy rate, and standard of living? How do they affect one another?