Econ Unit 3 Test

What is another term for a Free Market System?

• Socialism

• Communism

• Capitalism

• Democratism

What is a free market system?

• A type of economy where the government sets prices.

• A type of economy where the people and competition sets prices.

• A type of economy with a lot of rules and regulations that are set to drive the economy.

• A type of economy where many items are free to consumers.

Who makes the decisions in a free market system?

• The Government

• The Entrepreneurs

• The Consumers

• All members of the market

Which of the following is not one of the five pillars of capitalism?

• Government Influence

• Private Property

• Profit Driven

• Free Competition

How much involvement does the government have in a free market system?

• They have full control

• They have the majority control

• They have limited control

• They have no control

What does interdependence mean

• Countries depend on other countries for imports only

• Countries depend on imports and exports from/ to other countries

• Countries depend on other countries for exports only

• Countries depend on other countries to help set prices and establish their economies

What is the difference between imports and exports?

• There is no difference

• Exports come in the the country and Imports go out

• Imports come in the the country and Exports go out

• Exports are goods bought and Imports are goods sold

Why is international trade needed?

• To get goods and services that are not provided by your own country

• To be able to help other countries, and to keep the global economy thriving

• To assist impoverished nations

• To keep up foreign relations

What is a tariff

• A tax on import and export goods

• A tax on import goods

• A tax on export goods

• A tax on all traded items

What is an embargo?

• A promise to sell a product exclusively to another nation

• A trade agreement set up between one or more nations

• When a country is no longer allowed to trade with a different country

• Stops all trade from leaving your country