The purpose of the European Union is to

create greater economic unity between European countries

Which explanation reflects a mixed economy?

combination privately owned industry and government control

The 3 economic questions asked of all economies are

What to produce? How to produce? and for whom to produce?

UK, Germany, and Russia's economic systems have what in common?

all are mixed:mostly market with some elements of a command

What is the purpose of currency exchange?

it creates fairness for trade between countries

The PM says, "My plan for energy independence will focus on using energy sources we have."

development and use of domestic natural resources will help.

The PM says, "My plan will give incentives to companies that invest in new computers."

investing in capital goods will increase the country's GDP

Which statement best describes the relationship between investing in human capital and GDP?

Investment in human capital leads to an increase in GDP

What are the 4 factors of economic growth?

entrepreneurship, natural res., human capital, capital goods

The PM says, "My plan will give tax breaks to citizens who start their own small business."

promoting entrepreneurship will improve economic development

The PM says, "My plan: give incentives to companies who provide training for employees.

investing in human capital will increase the country's GDP.

Why do countries specialize?

Countries have limited productive resources.

If a country imposes a tariff, what will likely happen to the imported goods?

the price rises and the quantity imported decreases

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European Economics CA Test Review

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Questions 24

Answers

1
The purpose of the European Union is to
require all nations to adopt a command economy
create a large army for world use
Solve all of Europe's Environmental Issues
create greater economic unity between European countries
2
Which explanation reflects a mixed economy?
distribution of country's resources based on inheritance
prices and wages determined by laws of supply and demand
combination privately owned industry and government control
prices and wages are solely regulated by a country's govn't
3
If lead-based paint was used on imported toys, which trade barrier would be used for safety?
embargo
tariff
quota
exchange rate
4
The government deciding how to answer all economic questions
traditional
market
specialized
command
5
What is NOT an example of human capital?
a factory
a tennis lesson
a course at a college
a computer course
6
The 3 economic questions asked of all economies are
What is made? Who is made? How is it made?
What to produce? How to produce? and for whom to produce?
What to produce? Why produce? For whom to produce?
What's the opportunity? How are the resources? Who provides?
7
UK, Germany, and Russia's economic systems have what in common?
all are mixed:mostly market with some elements of a command
pure market economies
all are mixed with mostly command elements
all are pure command economies
8
a person who comes up with a product or service and takes a business risk
president
czar
entrepreneur
communist
9
What is the purpose of currency exchange?
it creates fairness for trade between countries
it causes specialization for all products and services
It creates trade barriers between countries
human capital increases wage levels
10
Which of the following is not an example of a natural trade barrier?
political border
oceans
mountains
rivers
11
You decide to open up a doughnut shop. This is an example of ...
trade surplus
entrepreneur
GDP
opportunity cost
12
You are a small business owner. You sell gaming consoles because you earn a high profit.
traditional economy is demonstrated
closed economy is demonstrated
command economy is demonstrated
market economy is demonstrated
13
The PM says, "My plan for energy independence will focus on using energy sources we have."
development and use of domestic natural resources will help.
investing in capital goods will increase GDP
an investment in human capital will increase GDP
A tariff on oil imported will double our oil production
14
Small island countries have fewer natural resources. Trade is affected b/c the country must
export only manufactured products
Avoids exporting and importing
Needs to import more products
Should import fewer products
15
The PM says, "My plan will give incentives to companies that invest in new computers."
adjusting the exchange rate will increase profit
investing in capital goods will increase the country's GDP
investing in human capital will increase the country's GDP
tariffs placed on technology will help create a BIG company
16
Which statement best describes the relationship between investing in human capital and GDP?
Investments in human capital leads to a decrease in GDP
A decrease in GDP leads to an investment in human capital
An increase in GDP leads to investments in human capital
Investment in human capital leads to an increase in GDP
17
What are the 4 factors of economic growth?
entrepreneurship, capital humans, natural resources
entrepreneurship, natural res., human capital, capital goods
entrepreneurship, human goods, capital, natural resources
entrepreneurship, human capital, capital goods, oil
18
The PM says, "My plan will give tax breaks to citizens who start their own small business."
a tariff on goods imported from other nations will help
promoting entrepreneurship will improve economic development
investing in human capital and increase GDP.
investing in capital goods will increase the country's GDP
19
The PM says, "My plan: give incentives to companies who provide training for employees.
an investment in capital goods will increase GDP.
investing in human capital will increase the country's GDP.
an embargo on technologies will help the country.
Adjusting the exchange rate will increase profit.
20
Building new factories and using newer technology is an example of
opportunity cost
investing in capital goods
Gross Domestic Product
investing in human capital
21
What does domestic mean?
Outside of a country
Outside of a state
Within a country
Inside a state
22
Why do countries specialize?
Countries like to focus on other countries
Countries do not have productive resources
Countries have limited productive resources.
Countries have unlimited productive resources.
23
What type of trade barrier stops trade completely?
quota
incentives
tariff
embargo
24
If a country imposes a tariff, what will likely happen to the imported goods?
the price decreases and the quantity increases
the price decreases and the quantity imported decreases
the price rises and the quantity imported decreases
trade barriers have no effect on price or quantity of goods.

European Economics CA Test Review Flashcards | StudBud