SS7E1 Economic Systems (Kaiser Edit)

Front

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

Back

To pay for goods purchased from different countries

Answer explanation

A system of currency exchange is necessary for international trade to facilitate payments for goods purchased from different countries, as each country has its own currency.

Front

Gross Domestic Product is a measure of the total value of all.....

Back

The goods and services produced in an economy over a period of time

Answer explanation

Gross Domestic Product (GDP) measures the total value of all goods and services produced in an economy over a period of time, making 'The goods and services produced in an economy over a period of time' the correct choice.

Front

What is a tariff?

Back

A tax placed on imports.

Answer explanation

A tariff is specifically defined as a tax placed on imports, which governments use to regulate trade and generate revenue. The other options do not accurately describe a tariff.

Front

What is an embargo?

Back

A government order to stop trade.

Answer explanation

An embargo is a government order that prohibits trade with a specific country or the exchange of specific goods. This makes "A government order to stop trade" the correct choice, as it directly defines what an embargo is.

Front

In a command economy, who holds power over the economy?

Back

The government

Answer explanation

In a command economy, the government holds power over the economy, making decisions about production, distribution, and pricing. This central control contrasts with market economies where individuals and businesses have more freedom.

Front

Which of the following is an economic system in which economic decisions are made according to social roles, tradition, & culture?
Market economy, Command economy, Traditional economy, Mixed economy

Back

Traditional economy

Answer explanation

A traditional economy relies on customs and cultural practices to make economic decisions, contrasting with market, command, and mixed economies that use different methods for decision-making.

Front

Which economy is dictated by supply and demand and the buyers and sellers?

Back

Market

Answer explanation

The market economy is driven by supply and demand, where buyers and sellers interact to determine prices and allocate resources. This distinguishes it from socialism and command economies, which rely on central planning.

Front

A person who comes up with a product or service, and finds the money and time to produce this new product.

Back

Entrepreneur

Answer explanation

An entrepreneur is someone who creates a new product or service and secures the necessary resources to bring it to market. This definition aligns perfectly with the question, making 'Entrepreneur' the correct choice.

Front

The amount of a good that is available.

Back

supply

Answer explanation

The correct answer is 'supply' because it refers to the total amount of a good that is available for sale in the market, distinguishing it from demand, which is the desire for that good.

Front

Goods sent out of the country for sale to another country

Back

exports

Answer explanation

The correct answer is 'exports' because it refers to goods sent out of a country for sale in another country. 'Imports' are goods brought into a country, while 'profit' and 'kahoot' are unrelated terms.