Which would be a PROBLEM in a command economy?

Only certain goods can be made creating limited options.

Why is a currency exchange system necessary for international trade?

Because different countries have different currencies.

A tax placed on goods coming into one country from another.

Which is an example of human capital?

skills and education that workers have

Why are most modern economies referred to as mixed economies?

Most countries have aspects of more than one econ. system.

In a market economy, how are the economic decisions made?

By consumers and the market (based on supply and demand.)

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

Most think that a mix of free mkt and gov't control is best.

A limit on the amount of foreign goods allowed in a country.

What is an entrepreneur?

Someone who is willing to take a risk to begin a business.

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

Ppl begin to want and need products that aren't made locally

How could a high tariff on imported grain help local farmers?

They'd be able to sell more grain since it'd be cheaper.

A halt to trade with a country for econ or political reasons

If a country does not invest in its human capital, how can it affect their GDP?

GDP may go down bc poor trained workers wont be as effective

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Economics Test

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7th Grade World Geography Georgia Standards

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Questions 20

Answers

1
Which would be a PROBLEM in a command economy?
Only certain goods can be made creating limited options.
Local crafts would be produced before manufactured goods.
Individual business people would risk their own money.
Citizens would get rich.
2
Why is a currency exchange system necessary for international trade?
Because different countries have different currencies.
Those buying goods on the world mkt want to be paid in gold.
Nearly all world currencies are worthless on the world mkt.
All goods bought on international mkt must be pd in dollars.
3
What is a tariff?
A tax placed on goods made by local craftsmen/manufacturers.
A fee paid when goods are shipped from one state to another.
A tax paid by the purchaser when goods are sold.
A tax placed on goods coming into one country from another.
4
Which is an example of a natural resource?
A deposit of coal
A hydroelectric dam
Computers and computer programs
A factory
5
In a command economy, how are the economic decisions made?
consumers and the market
government planners
citizens voting
customs and habits
6
Which is an example of human capital?
taxes collected from a country's workers
the amount of goods sold in foreign trade in a year.
money paid to workers for producing goods.
skills and education that workers have
7
Why are most modern economies referred to as mixed economies?
Most countries have aspects of more than one econ. system.
Poverty is always highest in countries with market economies
Products made by traditional economies have no markets.
Government planners don't know how to handle problems.
8
In a traditional economy, how are economic decisions made?
consumers and the market
government planners
customs and habits
citizens voting
9
In a market economy, how are the economic decisions made?
citizens voting
customs and habits
By consumers and the market (based on supply and demand.)
government planners
10
Why do most economies in the world today operate in between a market and command economy?
Gov't control of economy has never been successful.
Government control always makes a market economy profitable.
Most think that a mix of free mkt and gov't control is best.
Most consumers prefer gov't control to a free market system.
11
Which of these would be a CONCERN about a country's economy?
A high unemployment rate
A high literacy rate
A high Gross Domestic Product (GDP)
A large number of entrepreneurs
12
What is a quota?
A tax placed on goods when they are purchased in the market.
A limit on the amount of foreign goods allowed in a country.
A decision to prevent certain goods from imported at all.
A tax placed on imported goods when they enter the country.
13
Most economies in the world can best be described as:
Market
Command
Mixed
Traditional
14
Which is the term for a country or business focusing production on a limited variety of goods?
Specialization
Capital
Gross Domestic Product (GDP)
Entrepreneurship
15
Who takes on the financial risk in starting a new business in a market economy?
consumers
tribal leaders
government planners
entrepreneurs
16
What is an entrepreneur?
Someone who is always successful in whatever he tries.
Someone who is willing to take a risk to begin a business.
Business people who try NOT to take risks with their money.
People who enjoy saving all of their money.
17
Which would be a PROBLEM for a community with a traditional economy?
Older villagers teach younger workers to make products.
Ppl begin to want and need products that aren't made locally
The price of advanced electronics begins to rise rapidly.
People find ways to make products more efficiently.
18
How could a high tariff on imported grain help local farmers?
The grain process would be lower if tariffs were in place.
Local grain would always be higher quality.
Local grain would be more plentiful because it's grown close
They'd be able to sell more grain since it'd be cheaper.
19
What is an embargo?
A halt to trade with a country for econ or political reasons
A tax paid by the producer before he can sell his goods.
A limit on the amount of certain goods allowed in a country.
A tax placed on goods coming into the country from overseas.
20
If a country does not invest in its human capital, how can it affect their GDP?
Most workers want to keep their jobs and do not care abt GDP
GDP may go down bc poor trained workers wont be as effective
It would have little effect on a country's GDP.
GDP is only affected if workers pay for it themselves.

Economics Test Flashcards | StudBud