What is the purpose of currency exchange?

it creates fairness for trade between countries

Which explanation reflects a mixed economy?

combination privately owned industry and government control

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

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 purpose of the European Union is to

create greater economic unity between European countries

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

Investment in human capital leads to an increase in GDP

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.

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

the price rises and the quantity imported decreases

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

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

The 3 economic questions asked of all economies are

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

Why do countries specialize?

Countries have limited productive resources.

What are the 4 factors of economic growth?

entrepreneurship, natural res., human capital, capital goods

studbud

European Economics CA Test Review

24 termsStudBud Administration614 plays

#6SSeuroecon

Flashcards24 cardsFPractice quizPHost liveL

Questions 24

Answers

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

European Economics CA Test Review Flashcards | StudBud