Australia Economic Systems and Trade

In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, business operate for profit, and government is not involved.

• Command

• Communism

• Market

• Traditional

In a market economy, a high price will usually cause

• low supply and consumers buy more

• high supply and consumers buy less

• low supply and consumers buy less

• high supply and consumers buy more

Even though Australia has great economic freedom, the government requires some safety regulation. This means overall the economy can BEST be classified as a

• command economy

• traditional economy

• market economy

• mixed economy

Australia's economy is MOSTLY a

• market economy

• credit economy

• command economy

• traditional economy

In this economic system the government controls most aspects of the economy and makes all economic decisions?

• Traditional Economy

• Market Economy

• Command Economy

• Credit Economy

Which statement BEST reflects the difference between tariffs and quotas?

• Tariffs raise price of exports, quotas limit imports

• Tariffs lower price of imports, quotas raise price of exports

• Tariffs set limits on imports, quotas set limits on exports

• Tariffs raise price on imports, quotas set limits on imports

An exchange rate is used to

• promote the argument for free trade

• determine the price of one country's currency in terms of another countries currency

• determine the price of one's country's imports in terms of another countries exports

• promote subsides on foreign goods

All of these restrict international trade EXCEPT

• quotas

• tariffs

• embargoes

• subsidies

How might specialization encourage trade?

• One nation will focus resources on its specialty, forcing to buy other goods from other countries

• One nation will sell its specialty to others ONLY if they don't compete

• Nations agree to work together as a team to make it easier for them to manufacture expensive items

• Nations stop using products from other nations to support own economy

Which of these is TRUE about specialization in an economy?

• Government decides who can exchange goods

• Companies force people to participate in the economy

• People make the goods other people want

• Leaders require a certain number of exchanges per day