Economic Systems Review Unit 5(PW)

What were the TWO primary goals of the North American Free Trade Agreement (NAFTA)?

• A. reducing barriers to immigration between Canada, Mexico, and the United States

• B. creating a mutual defense pact between Canada, Mexico, and the United States

• C. eliminating barriers to trade between Canada, Mexico, and the United States

• D. encouraging economic growth in Canada, Mexico, and the United States

The United States embargoed trade with Cuba, for decades. What was the result of imposing the embargo?

• A. The United States and Cuba grew closer economically.

• B. The economies of both the United States and Cuba suffered.

• C. All trade between Cuba and the United States became illegal.

• D Cubans were forced to pay a fee to trade with the United States.

Countries need to have a system for exchanging currency with other nations in order to.

• A to have a uniform value of currency so they can identify what the value of goods are

• B to know which countries' currency has the greatest value so they can buy goods at the lowest cost

• C to know the value of their money compared to the value of other countries' money so they can trade goods

• D to have an international bank that converts the money of each country so countries can buy and sell goods

The three basic economic questions for traditional economies are?

• A. The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• B. The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions.

• C. Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. Supply and demand will guide all decisions

• D. Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity.

The command economies answer the three basic economic questions.

• A. The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• B. The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions. C

• C. Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. All economic decisions with be guided by supply and demand.

• D. Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity

Countries trade with each other because,

• A. Most countries trade with other countries in order to make alliances.

• B. Most countries trade for foreign currency to promote economic growth.

• C. Most countries produce a surplus of goods that would be wasted otherwise

• D. Most countries cannot efficiently produce everything their populations need.

Trade barriers is when?

• A Quotas and embargoes are imposed to encourage international trade.

• B Tariffs are imposed to encourage consumers to purchase domestic goods.

• C Quotas are imposed to encourage producers to improve the quality of goods.

• D Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

Quotas help make domestic industries more competitive by.

• A by setting the price at which foreign goods must be sold

• B by setting the price at which domestic goods must be sold

• C by limiting the number of goods exported to other countries

• D by limiting the number of goods imported from another country

Market economies answer the three basic economic questions.

• A The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• B The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions.

• C Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. Supply and demand will guide all decisions.

• D Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity

Mixed economies answer the three basic economic questions?

• A The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• B The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions.

• C Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. All economic decisions will be guided by supply and demand

• D Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity.