Unit 6 Canada Economics

In a market economy, prices are established by

• consumers and labor unions

• decree of government agencies

• The interaction of supply and demand

• businesses which buy and sell the product

In a command economy, how is it determined what goods and services will be produced?

• businesses decide what to produce on the basis of market conditions

• consumers decide through their behavior in the marketplace

• central government planning decided what will be produced

• supply and demand control production and price

Coming into effect in 1994, NAFTA encouraged free trade between the US and which other two countries?

• Canada and Cuba

• Japan and China

• Canada and Mexico

• Panama and Brazil

The price of one Nation's currency in terms of another nation's currency is called?

• fisical policy

• monetary policy

• exchange rate

• discount rate

This country has two languages, was once part of the British Empire, a member of NAFTA, world's second largest country (landmass)

• Mexico

• Canada

• Ireland

• United States

How does specialization allow for a higher standard of living?

• Everyone is better educated

• those who specialize have more money

• people who specialize are happier than those who don't

• people can trade for those items they don't produce themselves.

What is the currency used by each of these countries America, Canada, and Jamaica?

• dollar

• franc

• Mark

• Peso

Canada is located to the north of the United States. Due to its shared border, the US and Canada along with Mexico, entered into a trade agreement known as

• The European Union

• The United Nations

• The World Trade Organization

• The North American Free Trade Agreement

Why are foreign exchange rates are necessary in trade?

• rates help to balance imports and exports

• Rates help ensure cultural exchanges across boarders

• Rates help to compare prices stated in foreign currency

• Rates help to compare the supply and demand of goods trade between countries

In Canada who most determines who purchases goods and services?

• consumers

• businesses

• government

• organizations