Economics and Trade Practice Quiz

This raises the prices of foreign imports.

• Quota

• Tariff

• Embargo

• Sanction

A pure market economy would...

• Not have any government

• Have the government control everything

• A split between government and private control

• No way to determine production

Which type of government would have entrepreneurs making decisions without government interference?

• Command

• Mixed

• Market

• Traditional

How does literacy rate affect standard of living?

• The higher the literacy rates the lower the standard of living.

• The higher the standard of living the lower the literacy rates

• The higher the literacy rates the higher the standard of living

• The lower the literacy rates the higher the standard of living

Capital goods are the ___________ people use to produce goods and services.

• Raw materials

• Factories, machines, & technology

• New schools

• Skills, knowledge, and experience

A country can increase its human capital by investing in...?

• Education for its citizens

• New machinery for factories

• Railroads and airports

• Finding new natural resources

How do investments in capital goods affect a nations GDP?

• Investments in capital goods typically lead to a decrease in GDP

• Investments in capital goods typically lead to an increase in GDP

• A decrease in GDP typically leads to investments in capital goods

• An increase in GDP typically leads to investments in capital goods

Which is an example of a natural resource?

• Hydroelectric power

• Training

• Education

• Factories

Which sector normally grows a nation's GDP and why?

• Private because entrepreneurs start businesses

• Public because entrepreneurs start businesses

• Private because the government starts businesses

• Public because the government starts businesses

Which nations joined to form NAFTA?

• Panama, Cuba, Brazil

• Mexico, Brazil, Canada

• Germany, France, Great Britain

• Canada, United States, Mexico