Basic Economic Terms

How are economic decisions made in a traditional economy

• Customs and habits

• Trial and Error

• Government Groups

• Consumers and producers

How are economic decisions made in a command economy?

• Customs and Habits

• Government Planning groups

• Trial and Error

• Consumers and producers

How are economic decisions made in a market economy?

• Trial and Error

• Customs and Habits

• Government Planning Groups

• Producers and Consumers

This term refers to the amount of goods and services sold in a country.

• Quota

• GDP

• ANC

• Exchange rate

A voluntary exchange of good and services among people and countries.

• Trade

• Tariff

• Exchange rate

• GDP

A specific limit placed on the number of imports that may enter a country.

• Tariff

• Tax

• Quota

• embargo

Which of the following explains an embargo?

• A tax on imports

• A limit on imports

• To stop trade

• To increase trade

A specific limit on imports into a country.

• Tariff

• Embargo

• Quota

• Tax

Which of the following describes when one nation trades goods from its surplus of natural resources to get items they cannot make themselves?

• embargo

• trade Barrier

• service

• specialization

The percentage of people in a country without a job.

• unemployment rate

• gross domestic product

• specialization

• scarcity