Europe government and economics

A product of the earth (“gift of nature”) that people use to meet their needs is a

• Good

• Natural Resource

• Free Enterprise

• Service

The number limit on how many items of a particular product can be imported from a particular country is the

• Demand

• Quota

• Supply

• Tariff

The economic system of communist countries is most closely related to which of the following:

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

Which of the following is NOT one of the basic questions that all economic systems must answer:

• What to produce?

• How to produce?

• How much to produce?

• For whom to produce?

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

• Free Labor

• Competition between businesses

• Government control of industy

• Government control of agriculture

In a command economy, economic decisions are made by the

• Consumers

• market

• government

• producers

Which is an example of human capital?

• Education

• Roads

• Factories

• Machinery

Who owns the resources in a command economy?

• Governmnet

• No one

• individuals

• private businesses

How are goods and services exchanged in a traditional economy?

• through prices and wages

• through government regulation

• through bartering

• through shortages and surpluses

Which trade barrier sets up a complete ban on trading between countries?

• Mountain

• Tariff

• Quots

• Embargo