Unit 6- Economics (2)

What was a disadvantage of NAFTA?

• Economic growth

• More pollution from farming

• Increased trade

• Prices of goods

What does NOT describe a Market Economy?

• Decisions made by central planners

• Interactions between sellers and buyers

• Minimal government involvement

• All of the above

What type of resource is a factory?

• Natural

• Land

• Renewable

• Capital

Which of the following statements is TRUE?

• There are only a few currencies used in the world

• Exchange rates allow for more global trade

• All exchange rates are based upon the US dollar

You have $2.00 to spend. You can either buy a pop, or save the money for later. If you choose to buy a pop, what is your opportunity cost?

• $2.00

• buying one pop

• saving your money

• spending money

What is NOT included in GDP?

• Used cars

• The selling of stolen goods

• Mowing your own lawn

• All of the above

What is one of the Basic Economic Questions?

• How much should be exported?

• How will we afford this?

• How to produce goods?

• How to set up an economy?

What is a major US export?

• Clothing

• Cocoa beans

• Cars

• Cinnamon

What is true all over the world?

• Resources are scarce

• Countries always import more than they export

• There is high demand for electronics

• The government decides what to produce

Which country has a Traditional Economy?

• Canada

• Cuba

• China

• None of the above