SS7E1-3 Core Economic Concepts Test

Front

Based on the description, Nigeria could BEST be categorized as a ___ economy.

Back

Mixed

Front

Which question is MOST LIKELY a fundamental economic question? Options: Who will pay the taxes?, Who will educate the workers?, Who will get the goods and services produced?, Who will do the work to produce the goods and services?

Back

Who will get the goods and services produced?

Front

In a command economy, how is it determined what goods and services will be produced?

Back

Central government planning decides what will be produced.

Front

Which statement BEST reflects the difference between tariffs and quotas? Options: Tariffs set limits on imports, while quotas raise prices on exports. Tariffs set limits on exports, while quotas raise prices on imports. Tariffs raise prices on exports, while quotas set limits on exports. Tariffs raise prices on imports, while quotas set limits on imports.

Back

Tariffs raise prices on imports, while quotas set limits on imports.

Front

Which of these is TRUE about specialization in an economy? Options: One nation will sell its specialty to others ONLY if they don't compete. Nations stop using products from other nations to support their own economies. Nations agree to work together as a team to make it easier for them to manufacture expensive items. One nation will focus resources on its specialty, forcing it to buy other products from other nations.

Back

One nation will focus resources on its specialty, forcing it to buy other products from other nations.

Front

An import quota is a

Back

legal limit on the amount of a good that can be imported into a country.

Front

Which example might cause trade to be limited between countries? Options: the lifting of an embargo, tariff reduction on imports, a quota on imports and exports, decreasing safety standards on exports

Back

a quota on imports and exports

Front

In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South Africa in an effort to persuade the nation to end the racist policies of apartheid. This is an example of a(n)

Back

embargo.

Front

Entrepreneurs develop new goods and services to start a business. Why is entrepreneurship often difficult?

Back

There is a risk that the new business may fail.

Front

What do these factors MOST LIKELY represent?

• skills of citizens
• health of citizens
• education of citizens
• values of citizens

Back

human capital