BMS Economy Review

What is scarcity?

• When there is a small amount of something available.
• A large amount of an item available.
• Scary things that happen in the economy.
• This is not part of an economy.

What type of economy is this describing? The government controls the economy.

• command
• market
• traditional

What type of economy is this describing? Decisions are based on what is needed to survive.

• Command
• Market
• Traditional

What type of economy is this describing? People can choose what they want to buy, sell or make.

• command
• market
• traditional

What type of trade barrier is this describing? A tax placed on pineapples imported from Costa Rica.

• quota
• tariff
• embargo

What type of trade barrier is this describing? Only 25,000 cars are allowed to be imported from Japan.

• quota
• tariff
• embargo

What type of trade barrier is this describing? Trade with Cuba was completely stopped.

• quota
• tariff
• embargo

What type of economy does almost every country in the world have?

• command
• traditional
• market
• mixed

The diagram shows an economic continuum. Which letter on the continuum represents where a Pure Market economy would most likely be located.

<-----A------B----------------------C----------------------D-->

Total Government No Government

• A

• B

• C

• D

Mixed economy 

• combination of pure democratic and autocratic
• combination of pure market and pure command
• strictly command economy
• pure market economy