European Economics

Front

How are the prices of goods and services determined in a command economy such as the Soviet Union, North Korea, or Cuba?

Back

The government decides what it will be.

Front

Why was the European Union originally set up?

Back

Free trade with member countries

Front

Placing a cost onto trade that raises the price of the traded goods or services is a

Back

trade barrier

Front

_____ is when a country produces a limited variety of goods and services based on the resources in their own country.

Back

specialization

Front

If a business creates new jobs, what kind of resource are they investing in?

Back

Human Capital

Front

Which type of economy allows for a high degree of individual freedom?

Back

Market

Front

European countries can be described as MOSTLY what type of economy?

Back

market

Front

The European Union has positively affected the economies of Europe by

Back

lowering or eliminating barriers that slow down trade between countries

Front

European businesses found trade between country easier for two reasons: less number of tariffs and

Back

use of common currency

Front

Why do we need a currency exchange system?

Back

We need a way to pay for the goods made in other countries.