European Economics 6th

Because there are no pure free market or command what are all economic systems considered?

• Market

• Command

• Mixed

• Capitalist

What type of economic system do most European countries have?

• Mixed, mostly Command

• Mixed, mostly Communist

• Mixed, mostly Market

• Mixed, mostly Traditional

Which European country listed is the least free?

• Russia

• Germay

• United Kingdom

How might a country's literacy rate impact it's economy?

• Well educated populations are part of a stable and strong economy.

• A low literacy rate will help improve a country's economy

• High literacy rates lead require a country to provide more support for their citizens

• Poor quality education encourage increases in GDP

What is Standard of Living?

• The percentage of people who can read and write

• The amount of wealth and quality of life of a person or community

• The exchange of goods and services between two countries

• The total value of goods and services produced in a country in a year

Which TWO countries have the most freedom in answering the economic questions of “What to produce?,” “How to produce it?,” and “For whom to produce?”

• Russia

• Germany

• United Kingdom

How do entrepreneurs increase a country's GDP?

• Investing in human capital by building schools

• Exporting products into the global market

• Create jobs by opening new businesses

• By dividing the GDP by the population

How do countries solve the problem of scarcity?

• Engage in trade to purchase what they do not have

• Impose tariffs to protect their country's workers

• Invest in capital goods to increase production

• Move closer to free market on the economic continuum

A business owner wants to increase the efficiency and productivity of their workers. Which of the following would be an investment in their capital goods?

• Replacing old machines with new ones

• Sending their workers to additional training

• Starting a new business

• Clearing a field to expand their farmland

The country of Dunce wants to increase their GDP. Their literacy rate is currently 78%. Which of the following would BEST increase their GDP?

• Offer jobs for all citizens

• Invest in businesses by giving loans to build more factories

• Build schools for all citizens to receive an education

• Create incentives for citizens to start businesses