Europe Economy

Traditional Economies exchange goods and services through...

• Bartering

• Prices and Wages

• Government regulation

• Shortages and Surpluses

Which of the following is found in a market economy?

• Traditions of ancestors

• Government control of Industry

• Competition between businesses

• Government control of agriculture

Which of the following is one of the main questions that all economic systems must answer:

• Why to produce?

• What to produce?

• When to produce?

• Where to produce?

Why wouldn’t the citizen's needs and wants be considered in a command economy?

• The needs and wants are different for every citizen.

• The market regulates the citizens wants and needs through supply and demand.

• The government only produces products that further the goals of the government.

• The consumers trust that the government knows what the citizens need and want.

If a country has very high levels of entrepreneurship and supports free enterprise, where are they most likely to fall on the economic continuum?

• directly in the center, showing that it has a mixed economy

• this type of country would not fall on the economic continuum

• more towards a pure market, showing the economy has less government control

• more towards a pure command, showing that the economy has more government control

How are goods and services exchanged in a traditional economy?

• Through bartering

• Through prices and wages

• Through government regulation

• Through shortages and surpluses

A market economy is very different from a command system or a traditional system. Which of the following is found in a market economy?

• Traditions of Ancestors

• Government control of industry

• Competition between businesses

• Government control of agriculture

If a country has very high levels of entrepreneurship and supports free enterprise, where are they most likely to fall on the economic continuum?

• Directly in the center, showing that it has a mixed economy

• This type of country would not fall on the economic continuum

• More towards a pure market, showing the economy has less government control

• More towards a pure command, showing that they economy has more government control

The United Kingdom, Germany, and Russia all have what type of economy?

• Mixed

• Market

• Command

• Traditional

The United Kingdom customs service has found toxic lead-based paint in toys imported from a Chinese toy company. These toys are intended for sale in the United Kingdom. Exposure to the paint over a long period of time could be fatal to children under 6 years old.

What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint?

• Tariff

• Quota

• Embargo

• Exchange Rate