Unit 1.4 | European Economy Review

Samuel and Abigail live in a small village where they rely on traditional skills passed down from their ancestors. They rarely use money, instead, they barter goods and services with their fellow villagers, including Benjamin. What type of economic system is this?

• traditional

• command

• mixed

• market

Grace, Evelyn, and Arjun are studying different economic systems. They learned about a system where the government controls the operation of all businesses, goods, and services provided for its citizens. What is this system called?

• command

• mixed

• market

• traditional

In this economic system, citizens own and operate businesses and services, and the government has little to no control.

• market

• command

• mixed

• traditional

Most economies on earth can be classified under this system in which the government and citizens share responsibility over the goods and services provided.

• mixed

• command

• market

• traditional

When trading, countries often place these restrictions that make the trade more difficult

• trade barriers
• human capital
• command economy
• capital

This occurs when countries or citizens must exchange their money to match that of the host nation. This is done in order to cause less confusion and keep countries' money valuable.

• Currency exchange
• Trade barriers
• Quota
• Tariff

A country's total GDP divided by its population is known as GDP per capita. This is a much more accurate representation of individual citizens' standard of living in a country.

• total GDP

• GDP growth rate

• GDP per capita

• literacy rate

This trade barrier occurs when a country imposes a tax on imported goods to protect their businesses from foreign competition.

• tariff

• quota

• embargo

• capital

This trade barrier occurs when two or more countries no longer trade with one another, usually over government disputes.

• tariff
• quota
• embargo
• human capital

This trade barrier occurs when countries are forced to meet or set certain limits on how much of a certain product can be traded or produced in an effort to keep the prices of goods stable.

• tariff

• quota

• embargo

• entrepreneurs