Common Assessment 4 Review

The purpose of an international exchange rate is to

• Allow goods to be exchanged between different countries

• Allow people to buy goods within their country

• Allow traditional economies to exist

• Allow market economies to exist

People in countries with a high GDP per capita might live longer because they can afford the the things they need to survive, like food and water.

• True

• False

Entrepreneurship helps increase the production of services and goods, which can improve the economy.

• True

• False

Literacy Rate

• % of people who have a college degree

• % of people who can write

• % of people who can read and write

• % of people who can read

The___________ a country’s GDP, the better the country’s standard of living.

• lower

• greater

• smaller

• answers 1 and 3 are correct

Countries with a HIGHER GDP per capita usually have a LOWER average life expectancy. (Don't live to be very old)

• True

• False

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

What are the 3 basic economic questions that all economic systems must answer?

• What to produce, how to produce it, and for whom to produce the goods
• When to produce, why to produce, and how long to produce
• To what extent to produce, how much to produce, why to produce
• What to produce, why to produce, and how much to produce

The economies of Israel, Saudi Arabia, Turkey, and Iran could be best described as

• Traditional
• Pure Market
• Mixed Command
• Mixed Market

Which Middle Eastern country has the most oil?

• Iraq

• Syria

• Saudi Arabia

• Yemen