Sw Asia econ

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

Under which economic system does the government make almost all of the economic decisions?

• Command (Public)
• Market (Private)
• Traditional (Custom)
• Capitalist (Laws of Supply and Demand)

Which describes how MOST countries around the world answer basic economic questions?

• Most countries are pure command economies
• Most countries are pure market economies
• A mixture of command and market economies
• A mixture of traditional and market economies

In a market economy, who makes the economic decisions?

• subsistence farmers (grow just enough to feed family)
• custom and habit (do what ancestors did)
• government planners (public control)
• people (productions based on supply and demand)

What are capital goods?

• The workers who make the goods and services.
• The factories and machines used to make goods.
• The money spent to train workers to use new technology.
• The goods and services that are produced for a country's economy. 

Why are entrepreneurs (someone who starts business or new product) important?

• They can increase the country's unemployment rate.
• They are an economic system that hampers the privitization of businesses.
• They are a factor of production that helps to grow the economy.
• They can make their own economic decisions about capital tools for production.

 A limit to the number or amount of a foreign produced good that is allowed into the country is known as

• A tariff
• A quota
• An embargo
• A natural trade barrier

A tax placed on goods coming into a country from another country is known as

• A tariff
• A quota
• An embargo
• A natural trade barrier

A formal halt to trade with a particular country for economic and political reasons is known as

• Tariff
• Quota
• Embargo
• Natural Barrier

What is GDP?

• The value of goods and services a country imports.
• The value of all goods and services produced in a period of time.
• Trade Barriers countries place on each other.
• People who take risks on new businesses.