Unit 4 Economics Review

Which of the following is an economic system in which economic decisions are made according to social roles & culture?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which individuals own and decide what to do with scarce productive resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Investing in what 2 kinds of resources can increase a country's GDP & standard of living?

• Productive & capital resources
• Human & capital resources
• Natural & capital resources
• Human & natural resources

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

What 2 things encourage international trade?

• Specialization & scarcity
• Specialization & trade barriers
• Trade barriers & scarcity
• Specialization & currency

Producing a few types of goods & services instead of producing a wide variety of goods & services.

• Free trade
• Voluntary trade
• Specialization
• Over-specialization

What is another term for trade between nations?

• Free trade
• International trade
• Voluntary trade
• Trade barrier

 What could be a possible effect of over-specialization?

• Embargos would increase
• Embargos would decrease
• The country's GDP would increase
• The country's GDP would decrease