WG unit 2 review

Consumers determine the demand for a product.

Producers determine the supply and availability of a product.

The opportunity to make a profit drives people to put their money at risk

• traditional economy
• free enterprise
• mixed economy
• command economy         

In Indonesia, the government owns large industries and sets some prices. However, private businesses are encouraged and several hundred are actively traded on the Indonesian Stock Exchange. This country’s economy can be best classified as ___

• traditional economy
• free enterprise
• mixed economy/Socialist 
• command economy         

What factor has helped make commercial farming in developed countries   more successful than subsistence farming in developing countries?

• longer growing season
• better climates
• greater numbers of farmers
• modern techniques and equipment

Which is a major feature of an economy based on subsistence farming?

• most adults work outside the home in service industries
• farmers work in competition to raise money for tools
• the government officials have the power to decide which crops are grown
• farmers raise just enough crops for their own families

The Minister of Economics has created a plan for the economy which emphasizes the production of iron, steel, and hydroelectric power. In manufacturing, goods such as tanks and tractors will receive highest priority. Consumer goods are regarded as less essential. The people are expected to sacrifice comfort in order to raise the level of industrialization of their country.

Based on the excerpt, the Minister of Economics most likely lives in a country that has a 

• a command economy in a communist country
• a mixed economy with both public and private sector employees
• a traditional economy in a less developed country
• a free-enterprise economy based on supply and demand         

All of the following are examples of cultural diffusion except

• the spread of Christianity from Europe to the Americas
• the introduction of horses to the Americas by the Spanish
• prohibiting American Indian tribes from teaching their tribal languages
• exporting movies made in the United States to a worldwide audience

What determines the distribution of goods and services in a command economy like that of North Korea?

• North Korean governmental officials and their Five Year Plan
• Village elders in North Korea traditionally make these decisions
• In North Korea religious leaders get to make these decisions

Country 1: In my country, people produce what they need to survive by doing things as they were done by our ancestors. People hunt for food or grow it themselves.
What occupation would most commonly be found in Country 1?

• subsistence farmers are the largest part of the economy
• computer programmers are more important to the economy
• miners and factory workers are widely employed
• commercial farmers work to sell their goods to large corporations

In my country, people are free to produce whatever they wish and to consume whatever they can afford. People seek to make or sell goods and services so that they can earn a profit.

A supporter of the economic system found in this Country would most likely agree with which statement?

• government should limit its interference in the economy
• a planned economy is necessary in order to industrialize
• revolution is the only solution to the current economic problems
• all nations can benefit from cottage industries

In my country, all key decisions are made by our central planners. They hold complete power over the political and economic life of our nation. Our government directly owns the land, the natural resources, and the factories for the good of the people.
Which statement would be true of the economy of Country 2?

• a major goal of the economy is to have a classless economy
• very few people receive education or training outside the home
• many businesses compete to have the lowest prices
• most people follow the same occupation as their parents