What is the definition of gross domestic product (GDP)?

total value of goods & services a country produces in a year

What is an entrepreneur?

someone willing to take a risk to begin a new business

Which would be a problem in a command economy?

Starting a business would require permission.

Which would be a problem for a community with a traditional economy?

People want and need products that cannot be made locally.

Why is a system of currency exchange necessary for international trade?

Must be a way to pay for goods from other countries

If a country does not invest in its human capital, how is the country’s (GDP) impacted?

GDP goes down b/c poorly trained workers wont do their job

What is human capital?

skills and education workers have

Mrs. Martin will not trade with Mr. Gilmer

Why are most modern economies referred to as mixed economies?

Most countries have aspects of all three economic types.

How could a high tariff on imported grain help the people in the country charging the tariff?

Local corn would be cheaper than imported grain.

Why do most economies in the world today operate between a market and command economy?

Countries need a mix of free market and government control.

a tax placed on goods coming into the country

studbud

Economy Review

24 termsStudBud Administration195 plays

#grade6 #economy

Flashcards24 cardsFPractice quizPHost liveL

Questions 24

Answers

1
What is the definition of gross domestic product (GDP)?
value of products a country buys from overseas in a year
total value of goods & services a country produces in a year
value of goods and services produced by small shops
the amount collected in taxes from the people of a country
2
What is a quota?
a sales tax
tax on incoming goods
Two per customer
No trade
3
In a market economy, how are the economic decisions made?
custom and habit
consumers and the market
government planners
individuals that own a business
4
In a command economy, how are the economic decisions made?
custom and habit
government planners
combination of consumers and planners
consumers and the market
5
What is an entrepreneur?
someone who is always successful
people who enjoy saving all their money
business people who try not to take risks with their money
someone willing to take a risk to begin a new business
6
Which would be a problem in a command economy?
People would get rich.
Local crafts would be produced before manufactured goods.
Starting a business would require permission.
Business people would risk their own money to produce goods.
7
Government is not involved and individuals are free to set their own prices.
Market
Mixed
Command
Traditional
8
Which would be a problem for a community with a traditional economy?
younger workers learn to make products.
People want and need products that cannot be made locally.
People find ways to make their products more efficiently.
The price of computers, begins to rise rapidly.
9
Why is a system of currency exchange necessary for international trade?
Buying goods on the world market is done in gold and silver.
Goods on the international market are paid for in US dollars
Must be a way to pay for goods from other countries
All world currencies are worthless on the world market.
10
This type of economy can be useful during times of war or emergencies.
Mixed
Traditional
Market
Command
11
In a traditional economy, how are economic decisions made?
custom and habit
government leaders
combination of consumers and producers
consumers and planners
12
If a country does not invest in its human capital, how is the country’s (GDP) impacted?
GDP goes down b/c poorly trained workers wont do their job
Most workers want to keep jobs and do not care about GDP.
GDP is only affected if workers pay for the investment.
Investment in human capital has little effect on GDP.
13
Individuals are encouraged to open businesses, but the government does regulate.
Command
Mixed
Traditional
Market
14
Who takes on the financial risk in starting a new business in a market economy?
individual business people
combination of planners and investors
government planners
consumers
15
Health care, education, and training can have a positive influence on this.
Entrepreneur
Human capital
Natural resources
Capital goods
16
What is human capital?
money paid to workers for producing goods
taxes collected from a country’s workers
skills and education workers have
the amount of goods sold in foreign trade in a year
17
What is an embargo?
Mrs. Martin will not trade with Mr. Gilmer
$.07 sales tax at Kroger
Mrs. King charges Mr. Coleman more for snickers
Mrs. Doyle may only buy 100 apples from Mexico
18
Examples are water, land, minerals, and air.
Human capital
Capital goods
Entrepreneur
Natural resources
19
Why are most modern economies referred to as mixed economies?
Most countries have aspects of all three economic types.
Poverty is highest in countries with market economies.
Government planners cant handle economic problems.
Traditional economies have no market in the modern world.
20
How could a high tariff on imported grain help the people in the country charging the tariff?
Local grain would be higher quality
The grain process would be lower if tariffs were in place.
Local grain would be more plentiful
Local corn would be cheaper than imported grain.
21
Hunters and gatherers are an example of this type of economic system.
Mixed
Command
Market
Traditional
22
Why do most economies in the world today operate between a market and command economy?
Government control of the economy has never been successful.
Government control always makes a market economy profitable.
Countries need a mix of free market and government control.
Consumers prefer government control to a free market system.
23
What is a tariff?
a limit on how much of product can be bought
Refusing to trade with a country
a tax placed on goods coming into the country
a tax placed on goods made by local people
24
Which is an example of a natural resource?
deposit of coal
factory
irrigation canal
hydroelectric dam

Economy Review Flashcards | StudBud