Unit 7

Gross Domestic Product
is a measure of the total value of all.....

• Consumer income in an economy over a period of time
• Capital accumulation in an economy over a period of time.
• Sales in an economy over a period of time.
• The goods and services produced in an economy over a period of time

In a command economy, who holds power over the economy?

• The people
• The government 
• Beyonce
• The traditions of your ancesetors 

A person who comes up with a product or service, and finds the money and time to produce this new product.

• Entrepreneur
• Incentive
• Specialization
• Barter

Why is a system of currency exchange necessary for international trade?

• The people buying goods want to be paid in gold and silver
• To pay for goods purchased from different countries
• All currencies are worthless on the world market
• Most goods must be paid in US dollars 

How do countries benefit from having natural resources? 

• Countries that have a lot of natural resources are able to use them to produce goods & services at a lower price than those who do not
• Countries that have a lot of natural resources are not capable of selling these items to other countries.
• Countries that have a lot of natural resources are generally poor and do not do well economically. 
• Countries get rid of all of their natural resources to create arable land.

Emphasizing which economic practice MOST helps African economies benefit from international trade?

• specialization

• generalization

• raising interest rates

• lowering inflation rates

What does Nigeria specialize in?

• oil production

• agriculture

• textiles

• manufacturing

A tourist from South Africa is visiting Nairobi, Kenya. What would the tourist have likely done before traveling?

• pay a tax on her money she is traveling with

• pay a quota to the government

• exchange her South Africa money for Kenyan money

• Import her luggage

When we completely stop trading with another country, it's called ____________________

• a tariff
• a quota
• an embargo
• a hissy fit

In 1962, the United States prohibited (stop) all imports and exports to and from Cuba.  This is an example of a(n) _______.

• Tariff
• Embargo
• Quota
• Entrepreneur