Canada Daily Bell Ringer

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions.

• Consumers decide through their behavior in the marketplace.

• Central government planning decides what will be produced.

• Supply and demand control production and price.

If a country invest in Human Capital then their Gross Domestic Product (GDP) will probably

• increase

• decrease

• remain unchanged

Which of the following BEST describes entrepreneurship?

• gifts of nature

• value of a person’s skills and education

• person who starts his/her own business

• good that is used to produce other goods

What is the gross domestic product?

• total value of all goods and services a country exports each year

• total value of all goods and services a country imports each year

• total value of all goods and services produced in one country in one year

• total value of all goods and services in which a country specializes

In a traditional economy, how are the three economic questions answered?

• traditions, beliefs, and habits

• government planners

• supply and demand

• trade and specialization

The price of one nation's currency in terms of another nation's currency is called

• fiscal policy

• monetary policy.

• the exchange rate.

• the discount rate.

How does specialization allow for a higher standard of living?

• Everyone is better educated.

• Those who specialize have more money

• People who specialize are happier than those who don't.

• People can trade for those items they don't produce themselves.

In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy?

• The country is embarking on large public works projects.

• The country has recently joined a new trade organization.

• The country relies on agriculture for most of its export revenues.

• The country has suffered a disaster and is receiving financial aid from overseas.

Which of these BEST describes an investment in human capital?

• improving access to public libraries

• expanding free-trade agreements

• limiting on-the-job training

• decreasing sales taxes

Why are foreign exchange rates necessary in trade?

• Rates help to balance imports and exports.

• Rates help ensure cultural exchanges across borders.

• Rates help to compare prices stated in foreign currency.

• Rates help to compare the supply and demand of goods traded between countries.