Economic Understanding Quiz 1

The most common economic system today is:

• Command
• Market
• Mixed
• Traditional

This economic system has government controlling what is produced and how it is produced.

• Command
• Market
• Mixed
• Traditional

In which economic system does the supply and demand determine what is sold and how much it will cost.

• Command
• Market
• Mixed
• Traditional

People make what they need to survive and the exchanging of goods and services do not require money:

• Command
• Market
• Mixed
• Traditional

What are the 3  basic economic questions all economic systems must answer?

• when to, why to, and how long to produce
• to what extent, how much, why to produce
• what to, how to, and for whom to produce the goods
• what to, why to, and how much to produce

What is trade?

• voluntary exchange of goods and services among people and countries
• involuntary exchange of goods and services
• goods and services
• goods and services for people only

What is a trade barrier?

• When a trade is stopped by a country
• The limitation of trade with other countries by a country
• Unlimited trade with other countries
• No trade with other countries

What are the three types of trade barriers?

• Tariff, Trade, No limits
• Trade, Quota, Limits
• Tariff, Quota, Embargo
• Trade, Tariff, Embargo

A tariff is:

• A tax on any item
• A trade on exports and imports
• A charge on exports
• A tax on imports

A Quota is:

• A limit placed on the exports
• No limit on imports that may enter a country
• A limit placed on the number of imports that may enter a country
• No limit on exports