SE Asia Economics

Why do most countries in the world today fall somewhere between a market and a command economy?

• Some government control has never been successful.

• Government control always makes a market economy more profitable.

• Most consumers prefer government control to free market.

• Most countries have found they need a mix of free market and government control to be successful.

Most economic decisions in North Korea are made by:

• Korean industrial leaders

• North Korean Parliament

• Korean people

• Premier Kim Jong-il

The Japanese economy has to make up for the country’s lack of:

• Education

• Population

• Natural resources

• Fish

The economy of North Korea can best be described as:

• Traditional

• Command

• Market

• Mixed

Poor decisions made about how to organize farming in North Korea have resulted in many years of:

• Drought

• Farmers refusing to work

• Starvation

• Arguments about what crops to grow

Why does specialization make trade between countries easier?

• There will always be a steady supply of goods on the market so trade is not needed.

• Countries can produce what they make best and trade with others for what they need.

• A country’s economy will never go through a difficult time if they specialize in a good.

• The competition between countries will not exist.

Why has Japan specialized in the area of technology?

• It has few natural resources and little farmland.

• It has a poorly educated population.

• The money earned is used to support the military.

• The country has little in the way of fishing.

If Japan’s government puts a limit on how much Vietnamese rice it will import this year, what trade barrier is this?

• Embargo

• Tariff

• Quota

• Opportunity Cost

Which of the following BEST describes a market system?

• The government provides services, such as telephones and television.

• A person can start any legal business and charge any price.

• The government provides food and housing to all workers.

• Businesses are owned by the government.

Most democratic nations have _______ economies.

• mixed.

• traditional.

• command.

• market.