Economic Systems and Voluntary Trade

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

• Command

• Socialism

• Market

• Traditional

Which of the following best explains a mixed economy?

• Private ownership of the factors of production and regulation of businesses by government

• Market exchanges answer all three of the big economic questions

• Family customs and traditions determine what and how to produce a good

• Government answers all three of the big economic questions

In a __________________ economy, families, clans, or tribes make economic decisions based on generational customs and beliefs.

• Mixed

• Market

• Traditional

• Command

Goods and services a country produces and sells to other countries

• imports

• exports

• demand

• supply

A tax on imports

• tariff

• import tax

• supply

• embargo

Goods and services brought in from other countries

• supply

• exports

• imports

• tariff

A limit to the number of imports that may enter a country

• tariff

• embargo

• demand

• quota

A government order stopping trade with another country

• tariff

• embargo

• quota

Rules used to try to limit trade with other countries

• embargo

• tariff

• trade barriers

• quota

A free-trade zone means:

• You don't have to pay money to get items.
• There are no tariffs between the countries in this zone.
• Trade happens less often.
• Trade does not happen.