SS7E4,5,6 Unit 5 review

1. Which Middle Eastern economy has the most free (from government control) mixed economy?

• Israel

• Turkey

• Saudi Arabia

• None of the Above

A Tariff is an example of ________________.

• A trade barrier.

• A type of economy.

• A government position.

• An economic system that allows entrepreneurship.

What describes a traditional economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

What describes a market economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

What describes a command economy?

• This system includes elements of the three other economic systems.

• The government controls all aspects of this system. Although the government sets aside resources for the common good of the people, this system was not designed to meet the wants of consumers.

• This system allows people to make their own economic choices including starting a business; it also allows consumers to spend their money as they wish.

• In this system, social roles and culture play a major role in how goods and services are made, how much money people make, and who can buy certain goods.

In country A, the mountains are full of diamonds and coal. The country uses these natural resources to create jewelry and power their machines, which they use to trade with other countries. Most citizens work as miners or jewelry-makers. This description best describes

• Opportunity Cost

• Specialization

• Diversification

• Differentiation

How could a high tariff on imported corn help the people in the country charging the tariff?

• The corn process would be lower if tariffs were in place

• Local corn would always be of higher quality than corn from other countries

• Local corn would be more plentiful because it was grown closer to the markets

• Local farmers would be able to sell their corn since it would be cheaper than the imported corn.

Country A decided to stop trading altogether with country B because country B was an ally of the country C which was at war with country A. What type of trade barrier is this an example of?

• Embargo

• Quota

• Tariff

• Specialization

Why does OPEC play such a powerful role in the world economy today?

• This nation is part of the United Nation.

• It builds dams along rivers shared by several countries

• The group controls both the supply and price of much of the world’s oil

• Membership includes many oil companies owned by the firms in the United States

If Israel's literacy rate is high, what can be concluded about their standard of living in Israel?

• The standard of living is low in Israel.

• The standard of living is high in Israel.

• The standard of living is not affected by the literacy rate.

• The standard of living will decrease as the GDP increases.