7th Economics Unit Key Terms 2018

Which of the following would be most helpful to improving a country's standard of living?

• decreasing the literacy rate

• increasing the literacy

• reducing the number of factories

• creating more low-paying jobs

Who owns the resources in a command economy?

• the government

• no one

• individuals

• private business

The economic system of communist countries and dictatorships is closely related to which of the following?

• Command economy

• Market economy

• Traditional economy

• Mixed economy

Which of the following is NOT one of the basic questions that all economic systems must answer?

• what to produce?

• how to produce?

• how much to produce?

• for whom to produce?

Why is it important for a country to invest in human capital?

• A country needs money in order to pay its workers

• Workers enjoy getting extra training and job opportunities

• Businesses cannot do all the training needed by the workers to be successful

• A country's economy is more successful when workers have good education and healthcare

A market economy is very different from a command economic system. Which of the following is found in a market economy?

• unpaid labor (workers)

• competition between business

• government control of industry

• government control of agriculture

This is an economic system where people follow the occupation of their ancestors.

• command

• market

• mixed

• traditional

What is a main reason for people to exchange currency (money)?

• to have foreign money

• to use American dollars to trade

• to make more money by trading currencies

• to buy and sell goods with other countries

The number limit on how many items of a particular product can be imported from a particular country is the ____

• demand

• quota

• supply

• tariff

In a command economy, economic decisions are made by the

• consumers

• market

• government

• producers