SEA Economies Unit Exam Review 21/22

Billy lives in Titletown. He travels to Loserville for business. When he arrives, he visits a small restaurant. What will Billy need to do before he is able to purchase a meal?

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• exchange his golden Titletown money for copper Loserville money

• wash his hands

• increase his standard of living

• call the Turkish Consulate and ask for assistance

People who own and operate a business, and accept the risk of that business failing, are

• literary commando

• traditionalist

• commodity broker

• entrepreneurs

What connection can be made between a nation's literacy rate and its economy?

• Illiterate people can get higher paying jobs than literate people and increase economic activity.

• Literate people can get higher paying jobs than illiterate people and increase economic activity.

• The better you can read does not directly reflect the amount of income you could earn.

• There is no apparent connection.

How do command economies compare to market economies?

• The government plays a greater role in command economies.

• In a command economy, decisions are made mostly based on supply and demand.

• In a market economy the government makes most of the economic decisions.

• The consumer plays a greater role in command economies.

What does a currency exchange rate allow a country to do?

• allow a country to purchase stock in another country

• trade one country's cheap money for another country's more expensive money and make a profit

• allows a country to exchange it's aged or mutilated money for new money

• calculate the value of its money relative to another country's money

What economic term means to tax a good as it enters a country where this tax must be paid before the good is unloaded?

• Quota

• Tariff

• Embargo

• Trade Barrier

Which of the following BEST describes a quota?

• a ban placed on all trade with a particular country

• a tax placed on goods imported from a country

• a tax on export goods paid to the exporting government

• a limit on the amount of goods that can be imported from a country

How do command economies prioritize the interests of the various actors involved in the economy?

• The interests of the people are prioritized over the interests of the government.

• The government tries to strike an even balance between prioritizing the interest of both the people and the government.

• The interests of the government are prioritized over the interests of the people.

• The government intervenes with few regulations on the market allowing the market to be somewhat free.

Identify the country most likely with a highest literacy rate, highest GDP/Capita, and highest standard of living.

• A

• B

• C

Identify the country most likely with the lowest literacy rate, lowest GDP/Capita, and lowest standard of living.

• A

• B