Australia Economy

What are the three economic questions all countries must answer?

• What to produce? How to produce it? When to produce it?
• What to produce? How to produce it? Whom to produce it for?
• Where to produce? When to produce it? How to produce it?
• What to produce? How to produce it? Where to produce it?

What is physical capital?

• People\labor
• imported goods
• tools, factories, technology
• health, training, education

What is human capital?

• tools, factories, machines
• education, skills, and training
• wood, minerals, water, trees
• money to start a new business

What is GDP?

• the amount of all the goods produced in a country in ten years
• the total of all the taxes collected in a country in one year
• the total value of all the goods and services produced in a country in one year
• the amount of all the wages in one country in one year

Why do people have to exchange currency?

• to make a profit
• because all countries have the same type of money
• the U.S. dollar is the only one excepted around the world
• countries have different types of currency

What is specialization?

• when a country or factory only produce one certain thing
• when a country or factory produce multiple things
• when a factory makes many things
• when a country produce many different things

Which of the following is not a natural resource?

• trees
• soil
• water
• computers

What is a quota?

• When a country allows only goods in from one country
• when a country limits the amount of certain good
• a tax on imported goods
• when you do not trade at all with a country

What is an entrepreneur?

• a person who takes a risk to start a new business
• a dictator
• a person who invests money into an established business
• a government official

How does an embargo work?

• it allows a country to trade with only one other country
• it stops all trade with a country usually for political reasons
• it allows a country to only export goods
• it allows a country to only import goods